CODE 18 - 77

ir Hinchcliffe, CSAD

Mr Rosling, EAD

Mr Figgis, EESD

Reference ....

(7)

Mr Masefield, FED

Mr Quantrill, HK&GD

>

Mr Joy, M&CD

Mr Tatham, MED

Mr Powell, NENAD

>

Mr Pettit, PDTD

>

Mr Sindall, SAmD

Separate copy to each

Mir103/2.

RICAVID P

Mr Holloway, SAD

Mr Smith, SEAD

>

10. 47

15 FEBIJO

Mr Coltman, SED

Mr Hime, SWPD

No

Mr Holding, WAD

Miss Stoddart, WIAD

OVERSEAS INVESTMENT INSURANCE SCHEME

1. ECGD are in the course of revising their arrangements for interdepartmental consultation on proposals for investment

(NB this minute is not about export credit guarantees.)

insurance.

2.

ECGD keep Posts informed of all applications for insurance by means of a simple proforma letter. I have asked them in future to copy these letters to us, and they have agreed to do so.

3. ECGD have hitherto consulted us about investment insurance proposals in countries where the political uncertainties are such that they feel they require a second opinion before forming their underwriting judgement. They have a statutory responsibility to obtain Treasury consent each time they underwrite an Agreement. This obligation has evolved into a set of rules which requires them to consult the Treasury on about 30 different countries. The Treasury are now considering whether they should see only those cases where the insurance decision about investment is affected by reasons of foreign policy.

4.

ECGD, the Treasury and FRD will shortly meet to consider which countries should be included in this definition. ECGD's opening bid is:-

(a)

Worldwide

All Communist states (including Yugoslavia).

/(b) Africa

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