Rather than making infrastructure-collateralized loans, unlikely to be repaid, or making unwelcome indications of interest in buying countries, the capital rich countries could offer to buy a longer-term royalty from developing countries.
If possible, the royalty investing country would have a natural interest in assisting in the development of the royalty selling country.
There would be no issue of country ownership or loss of control by those presently managing the affairs of the country.
The availability of development capital, if properly employed, would both benefit the country and strengthen its government.
The country selling the royalty should have a redemption right permitting payment terms sufficient to terminate the royalty.
We believe that we would be able to play a constructive role in the process by advising either or both of the parties in the creation of these royalty transactions.
Companies could also use a similar process, with our assistance, in the acquiring of a share of the revenues of the royalty issuing country.
Arthur Lipper, Chairman
British Far East Holdings Ltd
858 793 7100
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