topic of this paper especially when the relationship of the public
ccrporation with the multi-national corporations constitutes an
important though relatively newer form of relationship between
DCC and the underdeveloped countries.

Forms of Partnership

The partnership between a public corporation and a
multinational corporation (m.n.c.) takes various forms. The m.n.c.
may participate with the public corporation in the equity of a sub-
sidiary established to carry out a particular project. In most cases
it is in fact satisfied to be a minority shareholder. In many of the
subsidiaries of the Tanzanian National Development Corporation
(N.D.C.), the foreign partner owns anything from 10 to 45 per
cent of the equity.

In some cases the m.n.c. concerned may simply advance a
secured or unsecured loan to a subsidiary of a development cor-
poration. This appears to be especially true of the finance cor-
porations like the National Industrial Credit (EA) Ltd., the Credit
Finance Company Ltd., etc. In March 1966 the latter company
had outstanding loans in Kenya, Uganda and Tanzania amounting
to £1,284,159.¢

Another interesting form taken by a finance corporation is
illustrated by Tanzania’s Tanganyika Development Finance Ltd.
The N.D.C. of Tanzania, the Commonwealth Development Cor-
poration of Britain the Netherlands Finance Company for
Developing Countries (Nederlands Oversease Financierings-
Meatschappij N.V.) of Holland, and the German Company for
economic co-operation (development) (Deutche Gesellschaft fuer
wittschafthche Zusammenarbeit (Entwicklungsgesellschaft) mb) of
West Germany hold shares in equal proportion in the company.
Its main function appears to be to act as a catalyst fishing out and
stimulating new projects in which foreign private capital can com-
bine with local state and/or private capital.” Here is an interesting
example of an economic partnership between the states of three
developed capitalist countries and that of an underdeveloped coun-
try to provide, what is basically, an infrastructural service in the
modern financial world, to the foreign and local private capital.
The historical drama of the capitalist state ultimately serving the
interests of the capitalist class appears to be re-enacted on the
world stage!

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