policy against Rhodesia that participation would entaile And this was
the final reason for ASEAfs withdrawal. When announcing the decision the
firm itself stated that although deliveries with which ASEA would have
been connected would not have infringed the law on sanctions, the fact
that other contractors might buy supplies from Rhodesia meant that the
firm would he involved in a sanctions-busting project*
After this great victory for progressive forces in Sweden, the Mozambican
people now hope for similar support from their friends in England, for
it looks as though a British company is about to step into ASEAf§ shoes*
For reasons already mentioned, Portugal would welcome British participation in the project.  Of the several possible contenders to replace
ASEA, the British firm, English Electric, which has an "information-swap"
agreement with ASEA, and could therefore use the special system it has
developed, is expected to do so.  There is every reason to believe that
Britain would be only too happy to receive this £15 million export order -
sanctions or no sanctions.  Its unique position as Portugal's "oldest
ally" and supporter has already been well documented. Moreover, Britain
has already     shown more than a passing interest in Cahora Bassa.
English Electric, in conjunction with AEI was one of ZAMCO's two main
rivals for the contract.  Both the British Foreign Office and the Board
of Trade gave encouragement to the negotiations, and when the consortium
was being formed, talks were held between English Electric and the
Exports Credit Guarantee Department*, A recent press report has stated
that although these talks ceased when EE did not get the contract,
they have now been resumed (Sunday Times Business News, 9 November, 1969).
Moreover , early in October, 1969, Lord Nelson, the chairman of EE
said in an interview with the Stockholm newspaper, 'Svenska Dagbladet'
that his company would welcome an opportunity to bid for the contract
at the eleventh hour.  He said that EE had contacts with ZAMCO. . Later
a spokesman for the company in London confirmed the company's "great
interest" in the ZAMCO contract,  (reported in Financial Times of 4 October,
1969).
As far as sanctions are concerned, the British government is, as usual
when its direct interests are concerned,  burying its head in the sand.
In the House of Commons- on 21 October, 1969, an M«P0 asked the Secretary
of State for Foreign and Commonwealth Affairs what information be had
regarding the installation of a £150 million dam in Mozambique and its
effect on economic development in Rhodesia*     The Parliamentary Under-
Secretary, Mr.  Evan Luard replied?  "If you are referring to the
project for a hydro-electric scheme at Cahora Bassa in North-West
Mozambique, it is too early to say what effect, if any, this project
may have on Rhodesia's economic development." Coming only one month
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