Cost benefit analysis?

I read this article today about new archives being published showing that the British government offered £14 million to Libya in the 70s in return of amongst other things a retreat from Libya’s  support to the IRA. One can wonder how did they got to this proposal,  but it  must have involved very interesting cost benefit analysis and opportunity cost estimations. Another interesting thing is that the offer was made during Labour government.

http://news.bbc.co.uk/2/hi/uk_news/northern_ireland/8290209.stm

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