CONFIDENTIAL

I suggest that paragraph 55 be

reworded as follows:

"The ending of aid to Tanzania, as a

necessary consequence of her decision

to default on pensions, has not turned

out to H.M.G's political advantage.

For general aid reasons, as well as

for political considerations, the

Secretary of State for Foreign and

Commonwealth Affairs and the Minister

of Overseas Development, are anxious

to resume aid to Tanzania.

Acceptance

of the proposals in this paper would

make this possible".

The last paragraph of the draft

statement should be omitted completely.

A supplementary on the following lines

should be held ready for use:

"The Government's decision does of

course remove the impediment to a

renewed aid programme in Tanzania, and

I have no doubt that we shall in due

course be exchanging views with the

Tanzanian Government on the subject."

h) Consultation with posts

As soon as a Ministerial decision is

taken we ought to give posts guidance in

advance of any parliamentary announcement

and also seek their advice on the best

way of handling negotiations and avert

unhelpful reactions (e.g. demands that we

should go further and meet the pre-

independence pensions of indigenous

officers),

a

& f

NOTHING TO BE WRITTEN IN THIS MARGIN

officers admonenm dependent temutates

CONFIDENTIAL

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