Reference....
CDC is not formally restricted in its
19/E
Έ
operations to countries whose per capita income is belov a certain level. Nor is ODM which gives aid to Greece and Singapore whose GNP (and presumably national income) is higher than Hong Kong's! Moreover CDC is required to pay its way; this require- ment means that in practice CDC can, if it wishes, choose to invest in remunerative projects in the more commercially developed of the CDCs. CDC already participate in three Hong Kong enterprises.
The last sentence of paragraph 22 of the paper is more pertinent. CDC is forced to charge high interest rates and Hong Kong is unlikely to be interested.
CDFC is, of course, a private enterprise institution but there is no prima facie reason why it should not be interested except on grounds of financial prudence. It has not previously invested in Hong Kong (which is ominous). Its total
commitments amount to nearly £40 million in nearly 100 enterprises. Its largest stakes are in :
Central African Power Corporation Tasman Pulp and Paper Company
Electricity Supply Comm.
Both in( South
frica Industrial Cellulose Corp.
Phillips Imperial Chemicals Ltd.
(Australia)
£3.0 m.
£2.5 m.
£2.0 m.
£2.0 m.
£1.2 m.
I question if either CDC or CDFC are real possibilities. If we wish to pursue I would suggest that the best course might be :
CDC Induce Hong Kong Government to interest
the resident CDC manager.
CDFC Direct approach by HMG to London HQ.
(A.T. Baillie)
FPAD
25 April, 1969.