9 Thanks to the efforts of those in charge of ODM
(now Overseas Development Administration), a
valuable concession has been received by the
Corporation on interest rates. Yet part of the Corporation's work is still thwarted by receiving
the bulk of its money on unrealistic terms.
Consequently the Corporation often has to ask
These
overseas governments for tax concessions. have usually been granted in Commonwealth countries
whose tax laws are similar to those in Britain.
But laws in the countries outside the Commonwealth
to which the Corporation's activities have now been
extended, differ from British laws. The governments
of these countries accordingly find it more
difficult to give the necessary tax concessions,
and the purpose of the new 1969 Act enabling operations to be extended outside the Commonwealth
might well be frustrat d. In one other way this
weakness in the Act may in the future have a bad
effect. This is the possibility of co-operation
with European institutions such as the French Caisse Centrale. The Caisse Centrale, which is
virtually CDC's equivalent in France with a big investment and great expertise, has no equity capital but receives its money at 2% or 3%, a rate
CDC could not match. Here again a most useful
form of co-operation between European countries in their work in the development world might be checked by the existence of arrangements for the financing
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