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infrastructure which a territory can ultimately,
though not necessarily immediately, sustain from its
own resources. Alternatively, to aim, at least in
certain territories, at a somewhat higher standard,
even if it is not likely to be self-sustaining,
accepting that this implies continued financial (or
even budgetary) dependence in order to pre-empt
criticism that HMG may be propelling territories into
independence in discreditable social and economic
conditions. An initial rough estimate suggests that
the second policy, applied across the board, could
require about £24 million a year additional aid.
(nearly as much again as present UK aid allocations to
the dependencies and Associated States). However,
If we
the absorptive capacity of some territories is
restricted and this constraint might well limit the
additional expenditure to about £15 million.
remain in the EEC a proportion of the cost of aid to
our dependencies will after 1975 be met from the
European Development Fund, so long as they are.
dependencies. This flow might be substantial,
particularly if a special and favourable allocation
for dependent territories is retained in the now Fund
to be established in 1975.
INDIVIDUAL STUDIES TERRITORY BY TERRITORY
5. We agree with the Review that our Economic Aid
policies must be consistent with our political
objectives, and that we should specify our political
objectives as clearly as possible, territory by
territory, so that the appropriate economic aid
policy can be adopted. Our objectives must, of course
be defined not only in the light of the future
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CONFIDENTIAL
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