Mr. Bennett Mr. Carter
Mr. Fairclough
Mr. Jerrom
Mr. Sewell
RESTRICTED
Reference..............MF 23/3.
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3/14
Management of Aid:
Information for
Dependent Territories and Associated States
On 2 August 1968, Cyril Lovitt sent you a copy of a draft despatch which had been prepared by 0.D.M., enclosing a note on the various types of aid and the procedures for submitting applications for both development aid and technical assistance.
2. Replies received from Departments were critical of this draft and it was decided to defer sending such a despatch until we had decided, in consultation with O.D.M., on the procedure to be applied to development aid applications after the expiry of the C.D. and W. Acts in March, 1970. We have now received 0.D.M.'s reply on this matter; in view of the recent emphasis on value for money in giving aid, they have retreated from their original proposal for annual block grants for development projects and now propose that territories should submit applications for aid for specific projects pretty much on the lines of present C.D. and W. applications, except that the financial details and accounting and audit procedure will be simplified. Since all projects must be vetted by O.D.M. Advisers, I do not think that any other system would be practicable. A separate minute has been circulated by Miss Durbin on 30 December, 1968, enclosing a draft despatch on the end of the C.D. and W. era and future procedures.
3. Meanwhile difficulties are being experienced in some territories at present because they are not submitting C.D. and W. applications for the larger projects in the form now required by 0.D.M. Advisers. I think it would be useful, therefore, to send a general circular saving despatch on aid procedures, in order to let territories know what information is required. I have therefore revised the original O.D.M. draft and attach a copy. The revised version incorporates various amendments suggested originally by Departments and will I hope provide a useful reference document for the territories on aid generally. On project aid, it seems to me that the amount of documentation required should vary with the cost of the project and for small projects, where we have ample precedents, only a brief background note should be needed. From the point of view of documentation, I have therefore suggested that we divide projects into three categories, those costing less than £10,000; between £10,000 and £100,000 and over £100,000. This section of the despatch will apply both to current C.D. and W. applications and to post-C.D. and W. development aid applications.
4. I should welcome your comments on the revised draft. When we have an agreed version, I will clear it with O.D.M. and the Development Division in the Caribbean, whose advice will be sought as to whether it should be sent to the Associated States,
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