Key fingerprint 9EF0 C41A FBA5 64AA 650A 0259 9C6D CD17 283E 454C

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WikiLeaks
Press release About PlusD
 
CALL ON A.K.M. HAFIZUDDIN, BDG ADVISOR FOR INDUSTRIES
1976 April 14, 09:56 (Wednesday)
1976DACCA01905_b
LIMITED OFFICIAL USE
UNCLASSIFIED
-- N/A or Blank --

6808
-- N/A or Blank --
TEXT ON MICROFILM,TEXT ONLINE
-- N/A or Blank --
TE - Telegram (cable)
-- N/A or Blank --

ACTION EB - Bureau of Economic and Business Affairs
Electronic Telegrams
Margaret P. Grafeld Declassified/Released US Department of State EO Systematic Review 04 MAY 2006


Content
Show Headers
1. SUMMARY. AMBASSADOR CALLED APRIL 12 ON A.K.M. HAFIZUDDIN, MEMBER OF THE COUNCIL OF ADVISORS OF INDUSTRIES. HAFIZUDDIN DESCRIBED STEPS BDG WAS TAKING TO IMPROVE OPERATING EFFICIENCY OF GOVERNMENT- OWNED AND MANAGED INDUSTRIES; SAID THAT THE GOVERNMENT WOULD DIS- INVEST (I.E., SELL TO PRIVATE INVESTORS) MANY NON-NATIONALIZED INDUSTRIAL UNITS NOW RUN BY GOVERNMENT CORPORATIONS; AND OFFERED HIS VIEWS THAT BDG POLICIES ALONE WOULD NOT BE ADEQUATE TO ATTRACT FOREIGN PRIVATE INVESTORS. AMBASSADOR LEFT COPY OF "USG POLICY CONCERNING THE VALUATION OF EXPROPRIATED PROPERTY" PER REFTEL A. HAFIZUDDIN SAID GOVERNMENT HAD REACHED DECISION ON INTERNATIONAL TANK TERMINALS' OWNERSHIP QUESTION. WE WILL FOLLOW UP WITH COMPANY LAWYER HERE AND REPORT BY SEPTEL. END SUMMARY 2. AMBASSADOR, ACCOMPANIED BY ECON COUNSELOR, CALLED APRIL 12 ON LIMITED OFFICIAL USE LIMITED OFFICIAL USE PAGE 02 DACCA 01905 151346Z A.K.M. HAFIZUDDIN, MEMBER OF THE BDG COUNCIL OF ADVISORS FOR INDUSTRIES, TO INQUIRE ABOUT CURRENT BDG INDUSTRIAL POLICY AND ZL LEAVE STATEMENT TRANSMITTED REFTEL A. 3. DECENTRALIZATION. HAFIZUDDIN SAID THAT THE GOVERNMENT WAS TRYING TO IMPROVE THE MANAGEMENT OF ITS INDUSTRIES AND, TO THIS END, HAD DECIDED THAT THERE WOULD BE SEPARATE BUDGETS FOR EACH CORPORATION AND WITHIN EACH CORPORATION FORHLNDIVIDUAL INDUSTRIAL UNITS. EACH UNIT WOULD HAVE ITS OWN BOARD FO DIRECTORS WHICH COULD INCLUDE A REPRESENT A- TIVE OF THE GOVERNMENT CORPORATION CONCERNED. EACH UNIT WOULD BE RUN IN ACCORDANCE WITH THE COMPANIES ACT, THAT IS, EACH WOULD PUBLISH A BALANCE SHEET, AND BE SUBJECT TO AUDIT. EVERYTHING WOULD BE PUBLISHED AND "OUT IN THE OPEN", HAFIZUDDIN SAID. IT HAD PROVED MORE DIFFICULT THAN ANTICIPATED TO PUT THE NEW POLICIES INTO EFFECT, HOWEVER, IN PART BECAUSE OF DIFFICULTIES IN SWITCHING OVER IN THE MIDEST OF A FISCAL YEAR, HAFIZUDDIN EXPECTED THAT THE SYSTEM WOULD GET UNDER WAY AT THE BEGINNING OF THE NEXT FISCAL YEAR, FROM JULY 1, 1976. 4. DISINVESTMENT. HAFIZUDDIN EXPECTED AN ANNOUNCEMENT IN ABOUT ONE WEEK'S TIME OF THE GOVERNMENT POLICY TO SELIV PRIVATE BIDDERS THOSE INDUSTRIAL UNITS WHICH HAD BEEN TAKEN OVER BY THE GOVERNMENT BUT NOT NATIONALIZED (E.G. ABANDONED PROPERTIES). THE GOVERNMENT HAD DECIDED TO DEINVEST ITSELF OF RATHER A CONSIDERABLE NUMBER UNITS, HAFIZUDDIN SAID, BUT ONLY A FEW OF THSE WOULD BE OFFERED FOR SALE AT ANY ONE TIM E IN ORDER TO AVOID FLOODING THE MARKET AND SCARING OFF POTENTIAL BUYER S. MAKING A DISTINCTION BETWEEN DENATIONALIZATION, WHICH WAS NOT CONTEMPLATED, AND DISINVESTMENT, HAFIZUDDIN NOTED THAT AMONG THE JUTE INDUSTRIES, MILLS PRODUCING HESSIAN, SACKING, AND CARPET BACKING, WERE NATIONALIZED AND WOULD NOT BE OFFERED FOR SALE, BUT UNITS PRODUCING TWINE, AND PRODUCTS SUCH AS "JUTEX" (A BLEND OF JUTE AND OTHER FIBERS) WOULD BE. (INDEED, A GENERAL ANNOUNCEMENT, REPORTED SEPTEL, APPEARED IN APRIL 13 NEWSPAPERS.) 5. LABOR. IN ADDITION TO THE POLICY OF DECENTRALIZATION (PARA 3 ABOVE) THE MAJOR PROBLEM IN IMPROVING THE EFFICIENCY OF THE INDUSTRIAL LIMITED OFFICIAL USE LIMITED OFFICIAL USE PAGE 03 DACCA 01905 151346Z UNITS WAS THAT OF EXCESS LABOR. THE JUTE INDUSTRY WAS THE WORST OFFENDER HERE. IT COULD CAUSE VERY CONSIDERABLE DIFFICULTIES TO ATTEMPT TO DISMISS THESE WORKERS. ONE IDEA, WHICH HAFIZUDDIN HAD DISCUSSED WITH LABOR LEADERS, WOULD BE TO EMPLOY FROM 5,000 TO 6,000 JUTE WORKERS AS PART OF THE 18,000 FAMILY PLANNING WORKERS TO BE POSTED IN THE VILLAGES AROUND THE COUNTRY. LABOR LEADERS HAD GIVEN THEIR BLESSING TO THIS SUGGESTION PROVIDED THE WORKERS WERE ASSIGNED TO THEIR HOME DISTRICTS. 6. NATIONIZATION COMPENSATION. AMBASSADOR LEFT WITH HAFIZUDDIN THE TEXT OF THE DEFINITIVE STATEMENT OF "USG POLICY CONCERNING THE VALUATION OF EXPROPRIATED PROPERTY" TRANSMITTED BY STATE 81210. IN ADDITION TO DESCRIBING THE POLICY, AMBASSADOR CALLED SPECIFIC ATTENTION TO THE FIMP SENTENCE CONCERNING USG RESERVING ITS RIGHTS 59 .-8,5-8, CLAIMS FOR WHAT IT REGARDS AS ADEQUATE COMPENSATIONM IN ADDTION, WE ARE SENDING COPIES OF THIS STATEMENT BY LETTER TO THE FOLLOWING MEMBERS OF THE COUNCIL OF ADVISORS, ZIAUR RAHMAN (FINANCE), MIRZA NURUL HUDA (PLANNING), KAZI ANWARUL HAQUE (JUTE). 7. PRIVATE INVESTMENT. AMBASSADOR STRESSED US INTEREST IN POSSIBLE PRIVATE INVESTMENT IN BANGLADESH, BUT NOTED THAT DESPITE THE IMPROVED BDG INVESTMENT POLICY, POTENTIAL FOREIGN INVESTORS REMAINED CAUTIOUS IN THE LIGHT OF THE SITUATION HERE OVER THE PAST FEW YEARS. HAFIZ- UDDIN EXPRESSED THE HOPE THAT PRIVATE INVESTORS WOULD COME TO BANGLA- DESH BUT READILY AGREED THAT THE ANNOUNCEMENT OF IMPROVED POLICIES WOULD NOT, BY ITSELF, BE ENOUGH. A CLIMATE OF CONFIDENCE, AND BY IMPLICATION STABILITY, WOULD NEED TO BE CREATED. 8. INTERNATIONAL TANK TERMINALS (ITT). AMBASSADOR AGAIN RAISED THIS LONGSTANDING ISSUE (REF B AND NUMEROUS SUBSEQUENT MEMCONS). HAFIZUDDIN WAS FAMILIAR WITH THE SUBJECT AND RECALLED THAT HIS FRIEND OF 20 YEARS, BADRUDDIN AHMED, ACTING AS A LAWYER FOR ITT, HAD DISCUSSED THE MATTER WITH HIM. HAFIZUDDIN WAS FRANKED TO SAY THAT HE WAS SUSPICIOUS OF THE WAY THIS CASE HAD BEEN HANDLED AND HAS REVIEWED THE FILE AND CALLED FOR A NEW LEGAL OPINION. THIS HAD NOW BEEN RECIEVED AND IT HAD AGREED WITH THE EARLIER VIEW OF THE LEGALITY OF THE GOVERNMENT'S TAKING OVER CONTROL OF THIS ORIGINALLY US PROPERTY. AT HUZUDDIN'S SUGGESTION WE PLAN TO OBTAIN THE DETAILS FROM BADRUDDIN AHMED AND TO REPORT FURTHER. 9. GENERAL IMPRESSION. CONTRARY TO OUR EXPRECTION, BASED ON LIMITED OFFICIAL USE LIMITED OFFICIAL USE PAGE 04 DACCA 01905 151346Z HAFIZUDDIN'S BACKGROUND AS A POLICE OFFICER AND SOMEWHAT SURPRISING APPOINTMENT TO THE PAKISTAN INDUSTRIAL DEVELOPMENT CORPORATION (1962), FOR WHICH HE APPEARED UNQUALIFIED, HAFIZUDDIN MADE A VERY FAVORABLE IMPRESSION. HIS POLICIES ARE IN LINE WITH THE WORLD BANK AND OTHER DONOR RECOMMENDATIONS AND SEEMED SENSIBLE TO US. THE PRESENTED HIS POINTS OF VIEW IN AN ATTRACTIVE MANNER, AND SEEMED GENUINELY INTERESTED IN DISCUSSING HIS PLANS WITH US. (HE WAS FRANK TO ADMIT THAT THE ITT CASE HAD AROUSED HIS SUSPICION AND WHILE HE FOUND IT HAD BEEN HANDLED IN A LEGAL MANNER, HE THOUGHT THIS AN EXAMPLE OF THE FACT THAT THE LAW IS AN ASS".) BOSTER LIMITED OFFICIAL USE NNN

Raw content
LIMITED OFFICIAL USE PAGE 01 DACCA 01905 151346Z 41 ACTION EB-07 INFO OCT-01 NEA-10 ISO-00 TRSE-00 COME-00 CIAE-00 DODE-00 PM-04 H-02 INR-07 L-03 NSAE-00 NSC-05 PA-01 PRS-01 SP-02 SS-15 USIA-06 OMB-01 IO-13 AID-05 OPIC-03 IGA-02 XMB-02 CIEP-01 SIL-01 LAB-04 AGR-05 /101 W --------------------- 079846 R 140956Z APR 76 FM AMEMBASSY DACCA TO SECSTATE WASHDC 322 INFO AMEMBASSY ISLAMABAD AMEMBASSY NEW DELHI LIMITED OFFICIAL USE DACCA 1905 EO 11652: N/A TAGS: EIND, BG SUBJ: CALL ON A.K.M. HAFIZUDDIN, BDG ADVISOR FOR INDUSTRIES REF: STATE 81210 B. 74 DACCA 1261 1. SUMMARY. AMBASSADOR CALLED APRIL 12 ON A.K.M. HAFIZUDDIN, MEMBER OF THE COUNCIL OF ADVISORS OF INDUSTRIES. HAFIZUDDIN DESCRIBED STEPS BDG WAS TAKING TO IMPROVE OPERATING EFFICIENCY OF GOVERNMENT- OWNED AND MANAGED INDUSTRIES; SAID THAT THE GOVERNMENT WOULD DIS- INVEST (I.E., SELL TO PRIVATE INVESTORS) MANY NON-NATIONALIZED INDUSTRIAL UNITS NOW RUN BY GOVERNMENT CORPORATIONS; AND OFFERED HIS VIEWS THAT BDG POLICIES ALONE WOULD NOT BE ADEQUATE TO ATTRACT FOREIGN PRIVATE INVESTORS. AMBASSADOR LEFT COPY OF "USG POLICY CONCERNING THE VALUATION OF EXPROPRIATED PROPERTY" PER REFTEL A. HAFIZUDDIN SAID GOVERNMENT HAD REACHED DECISION ON INTERNATIONAL TANK TERMINALS' OWNERSHIP QUESTION. WE WILL FOLLOW UP WITH COMPANY LAWYER HERE AND REPORT BY SEPTEL. END SUMMARY 2. AMBASSADOR, ACCOMPANIED BY ECON COUNSELOR, CALLED APRIL 12 ON LIMITED OFFICIAL USE LIMITED OFFICIAL USE PAGE 02 DACCA 01905 151346Z A.K.M. HAFIZUDDIN, MEMBER OF THE BDG COUNCIL OF ADVISORS FOR INDUSTRIES, TO INQUIRE ABOUT CURRENT BDG INDUSTRIAL POLICY AND ZL LEAVE STATEMENT TRANSMITTED REFTEL A. 3. DECENTRALIZATION. HAFIZUDDIN SAID THAT THE GOVERNMENT WAS TRYING TO IMPROVE THE MANAGEMENT OF ITS INDUSTRIES AND, TO THIS END, HAD DECIDED THAT THERE WOULD BE SEPARATE BUDGETS FOR EACH CORPORATION AND WITHIN EACH CORPORATION FORHLNDIVIDUAL INDUSTRIAL UNITS. EACH UNIT WOULD HAVE ITS OWN BOARD FO DIRECTORS WHICH COULD INCLUDE A REPRESENT A- TIVE OF THE GOVERNMENT CORPORATION CONCERNED. EACH UNIT WOULD BE RUN IN ACCORDANCE WITH THE COMPANIES ACT, THAT IS, EACH WOULD PUBLISH A BALANCE SHEET, AND BE SUBJECT TO AUDIT. EVERYTHING WOULD BE PUBLISHED AND "OUT IN THE OPEN", HAFIZUDDIN SAID. IT HAD PROVED MORE DIFFICULT THAN ANTICIPATED TO PUT THE NEW POLICIES INTO EFFECT, HOWEVER, IN PART BECAUSE OF DIFFICULTIES IN SWITCHING OVER IN THE MIDEST OF A FISCAL YEAR, HAFIZUDDIN EXPECTED THAT THE SYSTEM WOULD GET UNDER WAY AT THE BEGINNING OF THE NEXT FISCAL YEAR, FROM JULY 1, 1976. 4. DISINVESTMENT. HAFIZUDDIN EXPECTED AN ANNOUNCEMENT IN ABOUT ONE WEEK'S TIME OF THE GOVERNMENT POLICY TO SELIV PRIVATE BIDDERS THOSE INDUSTRIAL UNITS WHICH HAD BEEN TAKEN OVER BY THE GOVERNMENT BUT NOT NATIONALIZED (E.G. ABANDONED PROPERTIES). THE GOVERNMENT HAD DECIDED TO DEINVEST ITSELF OF RATHER A CONSIDERABLE NUMBER UNITS, HAFIZUDDIN SAID, BUT ONLY A FEW OF THSE WOULD BE OFFERED FOR SALE AT ANY ONE TIM E IN ORDER TO AVOID FLOODING THE MARKET AND SCARING OFF POTENTIAL BUYER S. MAKING A DISTINCTION BETWEEN DENATIONALIZATION, WHICH WAS NOT CONTEMPLATED, AND DISINVESTMENT, HAFIZUDDIN NOTED THAT AMONG THE JUTE INDUSTRIES, MILLS PRODUCING HESSIAN, SACKING, AND CARPET BACKING, WERE NATIONALIZED AND WOULD NOT BE OFFERED FOR SALE, BUT UNITS PRODUCING TWINE, AND PRODUCTS SUCH AS "JUTEX" (A BLEND OF JUTE AND OTHER FIBERS) WOULD BE. (INDEED, A GENERAL ANNOUNCEMENT, REPORTED SEPTEL, APPEARED IN APRIL 13 NEWSPAPERS.) 5. LABOR. IN ADDITION TO THE POLICY OF DECENTRALIZATION (PARA 3 ABOVE) THE MAJOR PROBLEM IN IMPROVING THE EFFICIENCY OF THE INDUSTRIAL LIMITED OFFICIAL USE LIMITED OFFICIAL USE PAGE 03 DACCA 01905 151346Z UNITS WAS THAT OF EXCESS LABOR. THE JUTE INDUSTRY WAS THE WORST OFFENDER HERE. IT COULD CAUSE VERY CONSIDERABLE DIFFICULTIES TO ATTEMPT TO DISMISS THESE WORKERS. ONE IDEA, WHICH HAFIZUDDIN HAD DISCUSSED WITH LABOR LEADERS, WOULD BE TO EMPLOY FROM 5,000 TO 6,000 JUTE WORKERS AS PART OF THE 18,000 FAMILY PLANNING WORKERS TO BE POSTED IN THE VILLAGES AROUND THE COUNTRY. LABOR LEADERS HAD GIVEN THEIR BLESSING TO THIS SUGGESTION PROVIDED THE WORKERS WERE ASSIGNED TO THEIR HOME DISTRICTS. 6. NATIONIZATION COMPENSATION. AMBASSADOR LEFT WITH HAFIZUDDIN THE TEXT OF THE DEFINITIVE STATEMENT OF "USG POLICY CONCERNING THE VALUATION OF EXPROPRIATED PROPERTY" TRANSMITTED BY STATE 81210. IN ADDITION TO DESCRIBING THE POLICY, AMBASSADOR CALLED SPECIFIC ATTENTION TO THE FIMP SENTENCE CONCERNING USG RESERVING ITS RIGHTS 59 .-8,5-8, CLAIMS FOR WHAT IT REGARDS AS ADEQUATE COMPENSATIONM IN ADDTION, WE ARE SENDING COPIES OF THIS STATEMENT BY LETTER TO THE FOLLOWING MEMBERS OF THE COUNCIL OF ADVISORS, ZIAUR RAHMAN (FINANCE), MIRZA NURUL HUDA (PLANNING), KAZI ANWARUL HAQUE (JUTE). 7. PRIVATE INVESTMENT. AMBASSADOR STRESSED US INTEREST IN POSSIBLE PRIVATE INVESTMENT IN BANGLADESH, BUT NOTED THAT DESPITE THE IMPROVED BDG INVESTMENT POLICY, POTENTIAL FOREIGN INVESTORS REMAINED CAUTIOUS IN THE LIGHT OF THE SITUATION HERE OVER THE PAST FEW YEARS. HAFIZ- UDDIN EXPRESSED THE HOPE THAT PRIVATE INVESTORS WOULD COME TO BANGLA- DESH BUT READILY AGREED THAT THE ANNOUNCEMENT OF IMPROVED POLICIES WOULD NOT, BY ITSELF, BE ENOUGH. A CLIMATE OF CONFIDENCE, AND BY IMPLICATION STABILITY, WOULD NEED TO BE CREATED. 8. INTERNATIONAL TANK TERMINALS (ITT). AMBASSADOR AGAIN RAISED THIS LONGSTANDING ISSUE (REF B AND NUMEROUS SUBSEQUENT MEMCONS). HAFIZUDDIN WAS FAMILIAR WITH THE SUBJECT AND RECALLED THAT HIS FRIEND OF 20 YEARS, BADRUDDIN AHMED, ACTING AS A LAWYER FOR ITT, HAD DISCUSSED THE MATTER WITH HIM. HAFIZUDDIN WAS FRANKED TO SAY THAT HE WAS SUSPICIOUS OF THE WAY THIS CASE HAD BEEN HANDLED AND HAS REVIEWED THE FILE AND CALLED FOR A NEW LEGAL OPINION. THIS HAD NOW BEEN RECIEVED AND IT HAD AGREED WITH THE EARLIER VIEW OF THE LEGALITY OF THE GOVERNMENT'S TAKING OVER CONTROL OF THIS ORIGINALLY US PROPERTY. AT HUZUDDIN'S SUGGESTION WE PLAN TO OBTAIN THE DETAILS FROM BADRUDDIN AHMED AND TO REPORT FURTHER. 9. GENERAL IMPRESSION. CONTRARY TO OUR EXPRECTION, BASED ON LIMITED OFFICIAL USE LIMITED OFFICIAL USE PAGE 04 DACCA 01905 151346Z HAFIZUDDIN'S BACKGROUND AS A POLICE OFFICER AND SOMEWHAT SURPRISING APPOINTMENT TO THE PAKISTAN INDUSTRIAL DEVELOPMENT CORPORATION (1962), FOR WHICH HE APPEARED UNQUALIFIED, HAFIZUDDIN MADE A VERY FAVORABLE IMPRESSION. HIS POLICIES ARE IN LINE WITH THE WORLD BANK AND OTHER DONOR RECOMMENDATIONS AND SEEMED SENSIBLE TO US. THE PRESENTED HIS POINTS OF VIEW IN AN ATTRACTIVE MANNER, AND SEEMED GENUINELY INTERESTED IN DISCUSSING HIS PLANS WITH US. (HE WAS FRANK TO ADMIT THAT THE ITT CASE HAD AROUSED HIS SUSPICION AND WHILE HE FOUND IT HAD BEEN HANDLED IN A LEGAL MANNER, HE THOUGHT THIS AN EXAMPLE OF THE FACT THAT THE LAW IS AN ASS".) BOSTER LIMITED OFFICIAL USE NNN
Metadata
--- Capture Date: 01 JAN 1994 Channel Indicators: n/a Current Classification: UNCLASSIFIED Concepts: COMPENSATION, NATIONALIZATION, POLICIES, BUSINESS FIRMS Control Number: n/a Copy: SINGLE Draft Date: 14 APR 1976 Decaption Date: 01 JAN 1960 Decaption Note: n/a Disposition Action: RELEASED Disposition Approved on Date: n/a Disposition Authority: saccheem Disposition Case Number: n/a Disposition Comment: 25 YEAR REVIEW Disposition Date: 28 MAY 2004 Disposition Event: n/a Disposition History: n/a Disposition Reason: n/a Disposition Remarks: n/a Document Number: 1976DACCA01905 Document Source: CORE Document Unique ID: '00' Drafter: n/a Enclosure: n/a Executive Order: N/A Errors: N/A Film Number: D760143-0242 From: DACCA Handling Restrictions: n/a Image Path: n/a ISecure: '1' Legacy Key: link1976/newtext/t19760464/aaaacbzj.tel Line Count: '166' Locator: TEXT ON-LINE, ON MICROFILM Office: ACTION EB Original Classification: LIMITED OFFICIAL USE Original Handling Restrictions: n/a Original Previous Classification: n/a Original Previous Handling Restrictions: n/a Page Count: '4' Previous Channel Indicators: n/a Previous Classification: LIMITED OFFICIAL USE Previous Handling Restrictions: n/a Reference: 76 STATE 81210, 76 DACCA 1261 Review Action: RELEASED, APPROVED Review Authority: saccheem Review Comment: n/a Review Content Flags: n/a Review Date: 07 JUN 2004 Review Event: n/a Review Exemptions: n/a Review History: RELEASED <07 JUN 2004 by ElyME>; APPROVED <30 SEP 2004 by saccheem> Review Markings: ! 'n/a Margaret P. Grafeld US Department of State EO Systematic Review 04 MAY 2006 ' Review Media Identifier: n/a Review Referrals: n/a Review Release Date: n/a Review Release Event: n/a Review Transfer Date: n/a Review Withdrawn Fields: n/a Secure: OPEN Status: NATIVE Subject: CALL ON A.K.M. HAFIZUDDIN, BDG ADVISOR FOR INDUSTRIES TAGS: EIND, BG, US, (HAFIZUDDIN, A K M) To: STATE Type: TE Markings: ! 'Margaret P. Grafeld Declassified/Released US Department of State EO Systematic Review 04 MAY 2006 Margaret P. Grafeld Declassified/Released US Department of State EO Systematic Review 04 MAY 2006'
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