811.05145C/7–2753: Telegram
The Secretary of State to the Consulate General at Salisbury1
10. In talks Ball may have Rhodesian officials regarding possibilities private American investment there, he should point out large flow [Page 327] investment should not be expected follow automatically on implementation Federation and volume will depend on attractiveness Federation investment opportunities as against other areas, including United States, and Federation’s development of favorable climate for foreign private capital. Ball might inquire as to (1) areas Federal economy welcoming private investment; (2) assurances respecting remission profits, repatriation capital; (3) guarantees of treatment no less favorable than that accorded local capital.
NY Times July 26 carried Albion Ross interview with Prime Minister stating Huggins indicated Federation looking US for “billions of dollars” commercial investment for development. While story may not have reported with complete accuracy Huggins’ views and is not of serious concern, Ball should nevertheless emphasize obstacles impeding foreign investment, as counterweight to over-optimistic Rhodesian expectations.2
While article avoids question public investment, keep in mind present Congressional attitude will limit foreign aid programs to 1955.