TNAG-0340-FCO40-376-Aid-to-Hong-Kong-from-UK-1972 — Page 145

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AID 290/247/02

NOTE OF A DISCUSSION HELD ON THURSDAY 20TH JULY IN THE ODA

Present:

Mr RB M King (ODA in the chair)

Mr WJ Bird (BOTB)

Mr FW Glaves-Smith (DTI)

Mr WHL Gordon (ODA)

(Sir Michael Walker (ODA) was present at the close of the

discussion)

1. The Chairman, in welcoming Mr Bird to the ODA, explained that he was deputising for Sir Michael Walker who had been unavoidably engaged at the last minute.

2. Mr Bird explained that he was undertaking a series of discussions with trade associations etc in order to seek comments on the OPG. In visiting the ODA he had in mind the remarks made by Mr Radford at the meeting held on 12 June at the DTI, that "..... it was customary for OPG to approach CDA for advice rather than vice versa.", and it was comments of this nature which prompted him to question whether the OPG should carry on or be replaced. Mr Bird said that his own view was that the OPG should continue, but in a modified form. He said that he thought that if the UK's overseas performance was to be improved an organisation was necessary in order (a) to decide which projects to go for (b) to know the most suitable groups to tender and (c) to maintain close relationship with ECGD. Mr Bird also said that in addition to discussion on OPG he hoped that he could be given information about the new Private Investment proposals and a digest of ODA activities in the field.

3. Both the Chairman and Mr Glaves-Smith thought that the CDA's main point of contact with OFG was in the consultancy field. The Chairman said that if OPG had information about a possible consultancy, the ODA could always be asked whether it would qualify for aid and that, in appropriate cases, there was no reason why a firm should not be encouraged to speak direct to the country concerned to induce a request. The Chairman explained that in that event, if the firm worked up a project with an overseas government, that firm would virtually select itself if the matter came for ODA financing. Otherwise the ODA invites proposals from a number of consultants and, after consulting various professional associations, would select the firm considered most suitable. He said that he did not think that OPG were consulted and Mr Bird suggested that it would be helpful if they were. The Chairman said that he saw no reasons why OPG should not be consulted but said that as many of the ODA consultancies were comparatively small, he was not clear what advice OPG could give. As regards large projects he said that he would discuss selection proce- dures with Mr Glaves-Smith at a later date. The Chairman confirmed that the services of nationalised industries were used on occasions and said that, in this respect the ODA was conscious of the need to protect the interests of the private sector but if the terms of reference showed that, for example, only the CGB could undertake the work, the ODA would have to engage them. However the CDA would always encourage co-operation between the nationalised and private sectors.

4. The Chairman explained briefly HMG's proposals regarding new measures for encouraging private investment overseas. Mr Gordon said that details of these measures were being published later this month in booklet form and that copies would be sent to the BOTB. He also said, in answer to Mr Bird, that numerous "fixers" called at the ODA and that they were not unwelcome. He said that they are told that the CDA is interested in development and that they are encouraged to go away and find a developer.

15.

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