TNAG-2743-FCO40-3958-Visits-by-Commonwealth-officials--ministers-and-public-figur-1993 — Page 72

Question 16

The Monopolies and Mergers Commission have recommended

that:

"CDC should continue to be required to seek political

Overseas Development

clearance

through the

Administration for all proposed investments over a

given threshold (currently £2 million), but the

further procedure requiring CDC to obtain capital

sanction for large investments should be dropped".

Existing arrangements give Posts the opportunity to comment

under both procedures. Do you agree with the MMC's

recommendation? Would you wish to see any

any alternative

arrangements for the political clearance of projects?

Several Posts stressed the need to ensure political

clearance of CDC proposals, but almost all were content

with the Monopolies and Mergers Commission's recommendation

and

suggested no alternative arrangements. Some also

wished to have details of the projects (as provided under

present capital sanction arrangements) which would allow

them to make an informed judgement, particularly in the

context of ODA's aid programme. One Post suggested there

should be an annual review to examine the general thrust of

the country port folio, rather than focusing on individual

investment proposals.