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4. It will be necessary to look at the departmental changes in the light of our recent manpower review. There may be fewer posts required for expatriates but some of them are different from those which were agreed at the time of the review. It is fortuitous that we are expecting visitors from ESAD ODM and EADD Nairobi in the near future. We have made considerable progress with the full support of the Seychellois authorities in packing the personal effects of those OSAS and TC officers whose contracts were suddenly terminated.
5. Mr Morel, Permanent Secretary Finance, told me that since the coup the outflow of capital amounted to about Rs 10 m. Though not large, this is significant in Seychelles terms, but is offset by a resumption of incoming funds, eg for building developments. Morel also said that exchange control would be "the last thing to be introduced", that no changes were contemplated in offshore banking legislation, that price control would be exercised with restraint and that the development bank would go ahead. These are consonant with Rene's present policy of leaving things much as they are.
6.
Rene continues his pursuit of respectability and moderate socialism. He found it necessary to dilute some of Hodoul's wilder statements on nationalisation and expropriation. He appreciates that the sources of revenue nave not changed overnight.
7. In strictly domestic matters the regime is adopting a somewhat puritan approach. The imposition of licensed drinking hours even more inconvenient than those of Britain, and of penalties for ogling young ladies in the street are indications. But some
fairly austere reaction to Mr Mancham's more permissive society was inevitable.
18.
As seen
CONFIDENTIAL
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