Telegrams: Mitstyx Tarawa.
RECEIVED I
REGISTRY Ds. 39
22 NOV 1972
HPG5/22
Jrow Mi's Jouther
ORIC
CENTRAL GOVIND
KOFFICE" OF THE RESIDENT COMMISSIONER X
GILBERT AND ELLICE ISLANDS COLONY,
Tarawa, Gilbert Islands,
Western Pacific
16th November, 1972.
(In reply please quote)
F...169/6/1
INVESTMENT REVENUE EQUALISATION FUND
Welcome to the desk! Will you please refer to correspondence dealing with the Colony's Revenue Equalisation Reserve, resting with Olga Goodinson's unreferenced lettor of 17th February, 1972.
2. Yesterday I had an overnight visit from Alan Mitchell of the Crown Agents 'F' Department. His visit although brief was useful in that I was able to give him a working dinner at which he met our Acting Accountant General and Director of Audit who have in the past been among the most outspoken critics of the performance of our portfolio. In discussion it turned out that the Agents have by now reduced our equity investment to 20% of the whole portfolio of which less than half is in Australia. The remainder of the portfolio is in fixed interest stock, mainly gilt edged, which is what we had suggested as most suitable at this comparatively latc/before darke the disappearance of the phosphate revenues.
3. I have told Mitchell that we want, for the remaining: years until the fund is needed for revenue, to invest no more than 25% of it at any one time in anything but high yielding fixed interest stock as we do not feel here that there is sufficient time left to ensure that losses in the equity market
Miss C. Dowds,
Pacific Dependent Territories Dept. Foreign and Commonwealth Office
London S.W.1.
Copy sent to Mr. Armstrong for
arc/....
comments
iDevils
23/1/12