This study by Mr Sanjaya Lall of the Oxford University Institute of Economics and Statistics was commissioned by the Secretariat as an input into Commonwealth consultations, at the ministerial and other levels, in the general area of relations between host Governments and foreign suppliers of investment and technology. The study is partly based on, and summarises the empirical work done by the author, in co-operation with Mr P. Streeten and associates, for UNCTAD.