TNAG-2127-FCO40-3037-Investment-in-Hong-Kong-1990 — Page 116

Mark Capes Esq

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Dear Mark,

BRITISH HIGH COMMISSION

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RECEIV5 P.

Furness House 90 Independence Square PO Box 778 1990

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Port of Spain Trinidad

Telephone 625 2861-6

Mr. Marshall Mr. Penfold 4.вывать

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Your reference

Our reference

Date 11 June 1990

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expected.

IMAL BK

TRINIDAD AND TOBAGO: FOREIGN INVESTMENT BILL,

1.

had

The Trinidad and Tobago Foreign Investment Bill was finally passed in the Senate on 29 May following what has been a lengthy debate over the last couple of months. The Bill, originally introduced as the Caricom and Foreign Invest- ment Bill, was subject to more than twenty pages of amendments from Independent and Government Senators.

2. It is not clear yet what has exactly emerged, given all the amendments which were tabled, and it will be some two to three weeks before the new Bill will be printed and in a presentable form for introduction to the Lower House. We shall not be able to make a proper assessment until this document is available. The new Bill has been generally welcomed, although one Senator has warned that we are still a long way from seeing the Bill passed as it still has to go to the Lower House. But the Government's majority should ensure an easy passage for the Bill and any amendments that are made would emanate from the Government side. It is unlikely however that the Government will feel inclined to make any further amendments, particularly after the unanimous support which the Bill received from Government Senators in the Upper House.

3. The new Bill has received a particular welcome by Independent Senator Gerald Furness-Smith whose extensive list of amendments now constitute much of the amended Bill. The Minister of Industry, Enterprise and Tourism, Dr Bhoe Tewarie, who was responsible for piloting the Bill through the Senate has also been in a bullish mood about its contents and has said that it gives a clear indication to foreign investors that they are welcome to invest in a broad spectrum of activities in Trinidad and Tobago. One newspaper article, confirmed by Dr Tewarie, reported that the Trinidad and Tobago Government has already taken out a promotion in the form of a three-page supplement in the Wall Street Journal advertising Trinidad and Tobago as a "haven for investors". Rather surprisingly the supplement appeared six days before the Bill was passed in the Senate. According to Dr Tewarie there are also plans for more promotional material to appear in New York and other American newspapers.

4. Although it is too soon for experts to be able to analyse exactly what the detailed changes will mean for foreign investors, certain important elements of the Bill have emerged in the press. The new Bill removes the requirement to obtain a licence for small land purchases for residential and commercial pur- poses. With respect to land for residence only, a foreign investor may acquire land not exceeding one acre for residential purposes without obtaining a licence.

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