HESTRICTED
4.
Our proposals designed to utilise the greater part of the available addition
are as follows:-
༣.
COLOHTES
ADDITION OF £1 MILLION
This proposal is made to take account of recent discussions with the FCO regarding increased aid for the Caribbon and also in acknowledgement of the special position of the dependencies in the framework.
Ne would hope that pretty well all that is required in the Caribbean, Gibraltar and the Seychelles would come out of this £1m. but of course we will look further at the figure (which I remind all concerned is for estimated disbursements) in the light of future decisions.
b. COMMONWEALTH
1. BAST AFRICAN COMMUNITY. INCREASE OF £0.2m. to £1.0m.
To allow for a possible increase in the £2m, loan previously offered for the purchase of locomotives (Brockett's letter 34D 215/223/01 of 25 September to Richard Steel), I am not absolutely sure that this will be required but we are reserving the money for the present.
ii. CHANA,
INCREASE OF £0.75%. to £5.0m.
There is likely to be considerable scope for expanding our development effort in Ghana and the political omens now seem to justify an increased allocation
iii. INDIA/PAKISTAN,
INCREME CF £5m. to £55.5a.
No
India's needs and capacity to absorb aid are virtually unlimited, apart from her debt relief requirements. An increase of the order proposed will however probably have to be provided in non-project form. precise division between India and Pakistan is proposed at this stage and this can be the subject of later inter-departmental consideration as detailed proposals emerge; but some part of the proposed increase will clearly have to be allocated to Pakistan if politically embarrassing objections are to be avoided.
c. FORLIGN
1. LAOS
INCRSAGE OF £0.71m. to £0.76m.
In the light of comments by other Departments, we now accept that the FOF contribution should continue for a further year, but we endorse the Board of Trade view that it should be reviewed annually.
11. ASIAN INSTITUTE OF TECHNOLOGY
INCREASE OF £0.05m. to £0.15m.
increase to accommodate revised estimate requirement for 1970/71. This grant is a firm commitment.
iii. MIJCVLLANEOUS AFRICA
INCREASE OF £0.05m. to £0.5m.
There is considerable scope for minor projects financed from this allocation and a rounding up addition is accordingly proposéd.
2
RESTRICTED
Page 15Page 16