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RESTRICTED
OVERSEAS DEVELOPMENT ADMINISTRATION
Eland House, Stag Place, London SW1E 5DH
Telex: 263907/8 FAX: 01-273
Telephone: 01-273
or Switchboard: 01-273 3000
GTN: 273
GMP278
S Gibbey Esq
WIAD
Foreign and Commonwealth Office
Whitehall
London SW1
Dear Stun
Your ref
Our ref
Date
22 December 1989
STAMPS
We spoke on Thursday 21 December about Westwood Rogers Marketing Group Ltd (WRI) the Australian company which in September 1988 acquired a 75% holding in CAPHICO formerly 100% owned by Crown Agents. CAPHICO provides philatelic services. to a number of dependencies.
2. Unfortunately WRM has encountered financial difficulties principally because of cash flow problems. WRM has entered into arrangements with its bankers for the financial restructuring of the company and has in essence withdrawn from all business activities other than CAPHCO. Its continuance in the control and operations of CAPHCO is dependent upon financial support form its bankers ANZ Bank.
3. As you know, the Crown Agents retain a 25% shareholding in CAPIICO but WRM is contractually obliged to purchase this residual shareholding no later than the end of April 1990 at an agreed price of £60,000. Performance of this obligation is secured by an unconditional on demand bankers guarantee issued by the ANZ bank. We are carefully monitoring the situation. Crown Agents have assured us they will make due provision for any contingent liabilities which may arise.
4.
You undertook to inform other relevant departments in the Foreign Office of this development.
Jours surendy
Gour
GM Porter
Investment & Crown Agents Department
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