TNAG-0595-FCO40-742-Principles-and-procedures-of-granting-independence-1977 — Page 4

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CONFIDENTIAL

Mr Mansfield

SEYCHELLES: THE NEW REGIME

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Mu. Tarpor munt; P/A

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FLAG A 1. I submit Mr Pugh's latest report, of 16 June, on the

situation in Seychelles which updates the information in his FLAGS B,C letter of 9 June, submitted under my minute of 17 June.

2. Mr Pugh reports that, in general, Seychelles has resumed an outward appearance of normality, albeit rather more puritanical than before, and that the Government would appear to be increasingly secure and confident. President Rene has effected few policy changes and is cultivating an image for his Government of respectability and moderation. (This has not however prevented the outflow of £1 million of capital since the coup, though there has now been a resumption of incoming funds.)

3.

Our recognition of the new regime was apparently well- timed. Our sizeable aid programme, which is of crucial importance for Seychelles' development, continues uninterrupted. An official of the ODM will visit Seychelles at the end of this week to make a preliminary assessment of what, if any, changes will be required.

4.

Mr Pugh sees the Government gravitating in one of three directions moderate socialist, radical left or Marxist, but says it is too early to predict which. Left to his own devices President Rene might pursue moderate policies, but he could if he comes under pressure feel compelled to take an extreme line in order to safeguard his position.

Zwan

M K Ewans

East African Department

23 June 1977

cc: Mr Graham

Mr Stanley

Mr Littlefield, PUSD

Mr Brown, News Dept

Dr Cashmore, Research Dept OPA

HKGD ✔

Dr Wilson, Cabinet Office

MOD (DS 11; DI4)

Mr McLean, ODM

British Embassy PARIS (Mr Wright) British Embassy MOSCOW

RECEIVED IN

REGISTRY No. 51

'JUN 1977

HKC 012/5

CONFIDENTIAL

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