TNAG-2743-FCO40-3958-Visits-by-Commonwealth-officials--ministers-and-public-figur-1993 — Page 73

Question 17

Would there be any political implications if CDC were

required by HMG (a) to cease new investments and (b) to

seek to liquidate their investments (ie to sell their

equity and loan investments quickly, if necessary at a

heavy discount)?

Differing views were expressed in answer to this question

ranging from no damage under either 17(a) or (b) to highly

damaging for both. Overall Posts clearly felt that a CDC

withdrawal would signal a lack of confidence in the

recipient government and loss of economic interest by HMG.

Inevitably this would have a adverse impact on bilateral

relations with Britain. On 17(b) a number of Posts said it

would be very difficult to find buyers even at a discount

because of the economic circumstances of the

the recipient

country or problems with individual projects.

Question 18

Any others views?

A minority of Posts answered this question. They were

generally supportive of CDC, viewing it as a useful policy

instrument for HMG in maintaining good relations with

recipient governments. One Post suggested there should be

more evaluations of CDC projects.