CONFIDENTIAL
On the basis of examination of the overall development policy and rogramme of each territory, as in the past, HMG will assume a forward Commitment to provide £ X. of development aid over a period of years ahead, usually three. An indication will be given to the Government of each territory of the manner in which, having regard to the probable rate of expenditure, it is expected that disbursements by United Kingdom financial years will be phased. The sectors on which such aid is expected to be concentrated will also be indicated in general terms. Development aid granted to territories and States which are in receipt of budgetary assistance should be devoted as far as possible to productive development; in this way it is hoped that local revenues will be increased so as to reduce and possibly eventually remove the need for budgetary assistance. I do, however, recognise that in some of the smaller territories there is only a limited scope for economic development. I also recognise that, although the planning of expenditure ought to be arranged so as to keep within the disbursement figures indicated for each U.K. financial year, it may not always be possible to adjust the effective administration of long term programmes to rigid limits on annual expenditure; there will be room for some flexibility so long as HMG's annual ceiling for total aid disbursements is not exceeded.
5. Development aid, whether grant or loan, will as now be provided for approved individual projects. what is meant by a "project" is illustrated by the following examples:- a building or part of a complex of buildings, e.g. office block, school or hospital; a vessel; a defined phase of a roads programme, housing, water supply or electricity scheme; or a small scheme, of the nature of many C.D.& W. schemes specially devised to provide for a particular requirement. far as projects can cover a sector of development the total administrative and accounting work will be reduced; but it is not intended to exclude provision for even quite small schemes.
6.
Only assistance towards capital expenditure on projects can be approved unless a special dispensation has been given for certain recurrent expenditure e.g. replanting subsidies, to be financed from development funds. Project applications should be prepared on the following basis;
(i)
Projects costing less than £50,000
So
A brief description of the project should be given covering the following points:-
(a)
(b)
(c)
(a)
Is the project included in the approved development plan, and if so, where?
Benefits to be derived from the project, economic and social.
Professional advice on which the project is based.
Location of the project and reasons for its choice.
CONFIDENTIAL
2.