CODE 18-77
SS 8/78
(54)
Rar
Reference .KA502/516/01 · · ·
Mr Morris
HONG KONG AND THE COMMONWEALTH DEVELOPMENT CORPORATION
see53
The Fourth Report of the Foreign Affairs Committee on the work of the CDC to which you refer was published on 7 December. In paragraph 82 of the Report it states:-
2.
"We believe that more vigorous efforts should be made to disinvest from relatively wealthy countries such as Hong Kong .... and that money obtained by selling assets should be redeployed to the benefit of poorer countries... We believe that there would have to be a very strong case to justify continual investment in projects in countries which have little need for CDC concessionary aid and no need at all of CDC management expertise".
CDC's investment in Hong Kong at 30 September is, in fact, extremely limited. It comprises the following:-
Company Name
Class of investment
Holding
No
Book Value
£
Hong Kong Building
HK$5 ordinary shares
1,437,480
17%
230,156
and Loun Agency Ltd
Modern Terminals Ltd HK$1000 ordinary shares
5,556
10%
578,000
"
9.5% Debentures repayable
1979-84
880,000
3.
Given CDC's developmental objectives, it is highly unlikely that they would seek capital approval from ODA for any further investments in Hong Kong. Realisation of investments where possible is already CDC's policy.
Mis Goal.
M J Graham
E510
Investment and Crown Agents Department
ODA
December 1982
lowe & But
нек
HICK 022/4
NO DB 18/14 fcolbl/1
I don't think there in aything for or th to worry about.
Pr
4n
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