CAB148-30-Defence and Oversea Policy Committee Meetings Relating to 1967 Disturbances-1967 — Page 181

The Committee considered a nemorandum by the Chancellor of the Exchequer (OPD(67) 41) in respect of the possible sale of the Rhodesian

Branch of the Ottoman Bank.

THE CHANCELLOR OF THE EXCHEQUER recalled that Ministers had, at an

earlier stage, discussed the proposal that the Anglo-French Ottoman

Bank should sell their Rhodesian Branch to Volkskas, a South African Bank (MISC 100/A(66) 2nd Conclusions). The proposal had now been

revived in a somewhat different form, On commercial grounds it would

be advantageous to us to approve the proposal and while the practical

effects on the Rhodesian economy were less clear, it could not be said

that a refusal would clearly contribute to our sanctions policy. The

presentational aspect might be met by a statement in the terms of the

annex tɔ his memorandun, which would make it clear that the Ottoman Bank had agreed to sell the branch because the prospect of satisfactory

development in Rhodesia did not justify then in making continued efforts

there.

In economic terms, the issues were evenly balanced and the

decision should turn on broader considerations of policy.

In discussion there was general agreement that while the proposal per se might not be open to real objection it would create an enbarrassing precedent in relation to comparable proposals which might substantially impair the effectiveness of sanctions. In these

circumstances permission for the transaction should be refused.

The Committee

Invited the Chancellor of the Exchequer to inform the

Chairman of the Ottoman Bank that permission could not be granted for the sale of their Rhodesian Branch to Volkskas.

Cabinet Office, S.W.1.

7th June 1967

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