cst.ps/dr/10mp5.11

105067

CONFIDENTIAL

SHEF SECRETARY

TREAS

*

of Manning

Advice please.

this crowed with ther

TO THE

For. Secretary

- minute of

today's date to the Chancellor.

Treasury Chambers, Parliament Street SWIP 3AG

071-270 5000

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6446.

✓ PS/Bworen Chalke

-M Lanester

& Ainscon

In Muir Sp. Aderiser.

Fax 071-270 5456

The Rt Hon Douglas Hurd CBE MP

Secretary of State for Foreign & Commonwealth Affairs

Foreign & Commonwealth Office King Charles Street

London

SW1A 2AH

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9/11

8

November, 1993

C

fear Douglas

SURVEY SETTLEMENT: AID WING

So

Thank you for your minute of 2 November. I am sorry you are reluctant to accept EDX's proposal, which has of course now been approved by Cabinet.

2.

He has

The Chancellor has now written to you about CDC. taken the same view on commercial borrowing as did the Prime Minister, when the issue was put to him at the time he was Chief Secretary. His letter of 5 November explains the reasons why the proposal remains unacceptable; but it also deals with other facilities

help CDC and make proposals on market testing. If all the changes proposed in his letter were fully exploited, there should be scope not only for CDC to expand its activity but also for the involvement of genuine private finance in a way that did not risk doing damage to the Government's standing in financial

markets.

3.

On that basis, I hope you can non agree to the remaining conditions attached to the Survey settlement that you would stand ready to contribute to an ESAF successor, and that there should be no reduction in planned provision for ATP. Michael Heseltine has strong feelings about ATP.

4.

I know that

Your minute also recognised that it would be possible

the 1994-95 provision in a way that showed that the Prime

to

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