The Secretary of State to the Ambassador in Venezuela ( Corrigan )
5. Reurtel 1102, Dec 19.98 PL Committee prepared to consider proposals for reorganization of PL firms, but weighs relative ad vantage to allied cause from economic security viewpoint of approving reorganization and deleting firm on basis of reorganization or disapproving reorganization and continuing firm on PL for duration of its existence. Accordingly, if in future Emb recommends approval of proposed reorganizations Emb should report specifically what economic security advantage would be. Emb should continue its commendable practice of submitting proposed reorganizations for preliminary statement of Committee’s opinion before reorganization has actually taken place or Emb has committed itself. Brit representative on committee reports that firms have been told that reorganizations must assure that present owners will not have controlling interest in the future. Committee prefers complete elimination of present owners but where that is not feasible will give sympathetic consideration reorganization plans reducing present owners to minority interest and removing control from their hands.
Dept and PL Committee will handle all communications re these matters promptly. Pls give paraphrase of this message to Brit Colleague.
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