"
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provision was made for certain aid to revenue earning projects
to be made available on a loan rather than a grant basis; for
the most part these were "soft" loans with relatively low
interest rates and long periods of repayment, but the terms
in each case were tailored to the project concerned and to the
creditworthiness of the state receiving the aid. Thirdly,
provision was made for advances to stabilisation funds in the
associated states to help mitigate the consequences of temporary
fluctuations in commodity prices. These advances are repayable,
and are charged against normal aid to the extent that they are
not repaid. Finally, a part of the aid was used for technical
assistance linked to capital investment (e.g. pre-investment
surveys and assistance in preparation of projects) and for
technical cooperation (e.g. provision of experts, research,
assistance in drawing up development plans, fellowships,
occupational training etc.). There was a marked shift in the
emphasis of the projects supported by the second fund as compared
with the first. Almost half of the amount committed by early
1968 was for rural modernisation, a third for infrastructure, and
only a tenth for education and training.
Industrialisation
projects remained at only around 1 per cent of the total
commitments.
13. It is not possible to forecast the way in which the third
fund will operate. But it is possible that European Development
Fund aid will be more orientated than before towards industrialisa-
tion, and will also give preference to projects involving more
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/than one