KL threatens Britain over loan

KL threatens Britain over loan

KUALA LUMPUR (AFP): Malaysia said yesterday it will take legal
action if Britain stops a 234-million-pound (350-million-dollar)
loan for the Pergau dam project after a London-based pressure
group challenged the lawfulness of the deal.

"Legal or not legal, they must pay," Malaysian Prime Minister
Mahathir Mohamad was quoted saying by Bernama news agency,
adding:

"When they signed it, they did not say (if it was) legal or
not legal."

The non-government World Development Movement (WDM) on
Wednesday took to the British high court a civil suit accusing
Foreign Secretary Douglas Hurd of over-stepping his legal powers
in granting aid for the dam.

The loan for the hydro-electric project in northeastern
Kelantan state is said to be the biggest ever provided by Britain
as development aid.

Mahathir said whatever the outcome of the suit, an agreement
had been made and could not be declared illegal.