CONFIDENTIAL

(b) The F.C.O. proposals as set out in paragraph 13 (accepting O.D. M's proposals but extending them to include dependent territories).

1

(c) The Treasury's proposals as set out in paragraphs 17-19 (a pragmatic ad hoc approach).

Recommendation

2.

We should support the O.D. M. proposals. We should cease

to press for the inclusion of dependent territories but

insist that satisfactory and defensible arrangements should

I be made in regard to them. These are spelt out in paragraph 6

of the Background Notes.

3. Background Notes, which may be drawn on for speaking

purposes, are attached.

4.

Interested F.C.0. Departments have been consulted and

concur.

(A. T. Baillie)

Financial Policy and Aid Department

4 February, 1970..

CONFIDENTIAL

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