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in infrastructure development.
I explained that our own funds
are limited. But it is evident that relatively small
contributions of aid make a high return. For example, I was
able to announce the second phase of a special joint funding
scheme for a land reclamation scheme which will create farming
land for 20,000 people, at a cost of only £90,000.
13. They also raised the US embargo and the IFIS with me: I
was able to say that we were arguing their case with the
Americans. It is only when World Bank or ADB funds become
available that the real infrastructure problems can be tackled.
If we are not in on small, cost-effective projects now, we will
lose our position when the bigger contracts become available.
The second
V
14. I spent some time looking at the EC International
Reintegration Programme.
and main phase of this
has hardly taken off, partly due to bureaucratic problems on
both sides. I am clear that the mixture of credits and
micro-projects available under the Programme is the right
balance and that this is the key to stopping further migration.
But I am concerned at the delays and suspect that too much money is going on expatriate consultancies.
I will be taking
this up direct with Lynda Chalker.
15. The Vietnamese are extremely enthusiastic about the
economic reform training we are providing. I hope there will be scope to take on further students downstream. There is also a
huge market for ELT (and the British Council are interested in
opening up in Vietnam). I appreciate that resources are finite, but we might be able to utilise VSOS in this field as a
low-cost solution.
16. On other foreign policy issues, the Vietnamese were openly
worried about China. They appreciate our locus in Hong Kong
and the P5 and were grateful for the representations we have
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