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Corrigendum
at HemR
Finally, in the case of Singapore, and to a lesser extent Malaysia, the capital investment which is contemplated will not be effective unless markets can be found for the goods which will be produced. This will involve first of all efforts to increase the competitiveness of local industries but the problem of access will still remain. We are giving this matter most careful consideration here and we believe that it is in this sphere that Australia could make a significant contribution.
5. In Malaysia because the economy already has a large resource base and because the possibilities for development in the long term are very much more promising we do not expect that major structural changes will be needed as a result of the rundown. Mitigating assistance will therefore probably take the form of increased capital aid to enable development expenditure to be expanded; and technical assistance, particularly in the field of vocational training.
6. The assistance we plan to give will necessarily be spread over a long period and there will, no doubt, be changes in economic needs and circumstances which cannot be foreseen at this stage. Accordingly, the amount and forms of assistance we provide in the years to come will be the subject of continuous consultations with the governments concerned and we intend to establish effective means for securing this.
7. If the question is raised as to the timetable we envisage for the beginning of negotiations over aid, the reply might be that we do not expect any great delay over this once the main defence decisions have been taken. But we are still studying the report of the team of officials which visited Malaysia and Singapore recently and until those studies are complete it would be difficult to be at all precise over timing. We shall get into touch with the Governments of the two countries concerned about this and about the method of conducting the negotiations as soon as possible. We hope we may be able to do this during July.
Ministry of Overseas Development
8 June, 1967.
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