1
inte independence in discreditate socine and conmic conditions.
Alternatively,
resources. Second, 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 assistance, in ordu to pre-empo criticism that tim
may be propelling territories 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, the absorptive capacity of some territories is restricted, and this constraint might well limit the additional
expenditure to about £15 million. If we 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 new Fund to be
established in 1975.
4. We agree with the Review that our economic aid
policies must be consistent with our political objec-
tives, 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
de defined not only in the light of the future
constitutional status of each territory, but also
of the political considerations arising from the
nature and extent of future British interest in the
territory and our concern for its social and economic
conditions. Generally, this will mean that, where
our objective is constitutional independence, aid
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NOTHING TO BE WRITTEN IN THIS MARGIN
CONFIDENTIAL
/policy