CONFIDENTIAL

facilitate the continued supply of oil and bring substantial

commercial benefits in these rapidly expending markets.

(b) Enlarged technical assistance programmes to Malaysia

and Singapore would be to our advantage as the present

programmes of Special Aid are phased out. We should also

consider making increased provision for a capital aid

programme in Malaysia after Special Aid comes to an end.

This would help to maintain our political position, contribute

to the preservation of regional stability and secure commercial

benefits for us.

(c) Our position in Hong Kong would be strengthened by

an aid programme closely related to the proposed major

infra-structural projects, which could also bring appreciable

commercial benefit.

(a) Our aid programmes in Latin America could be substantially

expanded with priority being given to Brazil. We believe such

programmes would gain us significant political goodwill and

that it is in our interests to acquire such goodwill,

especially in Brazil with its expanding economy and the

prospects of it becoming both an important commercial and

political power.

(e) Our membership of the ELC will initially involve us

only in aid contributions to the EIB programme in Turkey

and to the Food Aid Convention. However, next year we shall

be negotiating a Third Yaounde Convention, as a result of

6.

CONFIDENTIAL

/which

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