Pressures exerted on Uganda by banking circles in the West are believed by political analysts here to have persuaded President Idi Amin of Uganda to take a more conciliatory approach toward Israel over Uganda’s $30 million debts to Israel, and to be behind his suggestion that the debts be dealt with “by more direct methods” than arbitration.
It is surmised here that while Amin has not yet committed himself to negotiations with Israel, he has come out explicitly against arbitration of the outstanding debts resulting from last year’s diplomatic rupture between the two countries because this would mean undertaking in advance to accept the arbitrator’s ruling.
According to a report here today, Amin had told the Italian Ambassador in Kampal–who acts on behalf of Israel’s interests in Uganda–that he opposed arbitration over the debt and preferred more direct contacts. Amin may hope that in negotiations, with a third party like Italy serving as honest broker rather than an arbitrator, he can work out a better deal with his Israeli creditors–one in which political as well as commercial considerations will play a role, observers said here.
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