By David Loyn BBC developing world correspondent

One of the most controversial bits of business at the World Trade Organization summit in Mexico was the attempt by Europe to liberalise international investment, tourism and financial services.

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These are the so-called "new issues" which developing countries are opposing because they want the focus of the summit to be on the reduction of farm subsidies in the developed world.

Europe's Trade Commissioner Pascal Lamy has been very keen to get a new deal to liberalise foreign investment, even though some leading member states which were supportive are now prepared to drop the proposals.

Those in favour of "new issues" say that if investment is easier then more funds will flow to the poorest countries, stimulating development.

But developing countries are concerned because they want to control the terms of investment so that not all of the profits flow out.

Rich neighbour

Mozambique, which is 170th out of 175 countries on the UN Development Programme's index of human development, lies next door to South Africa, the richest country on the continent.

The country is trying to attract foreign investment on the right terms, and South African funds are now beginning to flow in.

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But some leading NGOs are cautious about this.

The Mozambique programme co-ordinator of the World Conservation Union (IUCN), Dr Isilda Nhantumbo, says that Mozambique's economic fragility means that it is difficult to impose conditions on international investors.

"Mozambique is very vulnerable. For anything we depend on foreign assistance. It means we are in a very weak position to say no to investment. But I think that the government should do more to impose conditions."

One of the largest leisure projects yet undertaken is on a remote peninsula across the bay from the town of Vilanculos.

It has attracted controversy because of claims that indigenous people have been dislodged from their traditional fishing grounds, to make way for rich South Africans who are said to be paying up to $100,000 for a plot.

The rights to 54 coastal plots have been sold inside a newly fenced area which is designed to conserve wildlife.

Fishermen from the Vilanculos side of the bay say that they have been prevented from staying in traditional camps.

One of them, Paolo Nombura Nyamir, said: "We are not happy, because our camps were destroyed.

"That's where we have been going for a long time, and our ancestors used to go as well. And we were not paid any compensation."

The company which runs the "Sanctuary" denies that anyone has been prevented from fishing.

Funding

They have built around 300 homes outside the conservation area to house families who used to live in the reserve, but some fishing families have continued to live there.

Investment is a good thing. But the gains to people... have to be guaranteed Robert Luis Action Aid

"There are people that felt that they did not want to be removed. They will stay where they are. People will be part of this for ever, and there is absolutely no idea to exclude them," manager of the reserve Mark Cooke said.

But the promised agricultural training scheme for those who moved out has not started and they still do not have access to clean water. And the funding to dig wells has not come through yet.

The company has been paying community leaders to work for it, and wants to be seen to be consulting the local population.

It is important to them that they deliver what they promise, because they are hoping for international financial support for their conservation work.

Talk and action

The head of the company which spearheaded the investment, Hugh Brown, robustly defended the consultation with the indigenous community.

"There is a four-million-rand ($535,000) community programme which is rolling out at full speed. All the aspects of community management have been done with the community and not NGOs.

"NGOs tend to talk a lot and not do much. I don't know what they have done about saving areas on the coast of Mozambique. I haven't found one that's done anything yet."

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The British NGO Action Aid has been monitoring the project.

Their Mozambique director, Roberto Luis, denied that they are opposed to foreign investment. But he appealed for transparency.

"NGOs have been working to help people be friendly to investment. Investment is a good thing. But the gains to people there have to be guaranteed and assured. That's our major problem," he said.

"We are urging for openness. We should all be aware of what contracts and agreements have been reached. And based on that, be able to monitor to what extent they are fulfilling their promises."

If the WTO approves plans for the liberalisation of investment, these sort of demands for consultation will be harder to make.