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Development Divisions and even more for diplomatic posts. was suggested that its aim should be to raise the earning capacity of poor people rather than to give them an outright subsidy. Poverty-orientated programmes would have to be viewed primarily in a Country Policy Taner rather than in a Framework context: but they pointed to a distribution and application of aid that might well lead to controversy with other Departments even though the strategy had been approved by Ministers.
Framework Bias. There should be some £60-70m available in 1976/77 for allocation to purposes not catered for in the existing Framework. It would be difficult to disburse such sums at such relatively short notice on poverty-orientated and rural development projects. The shift of aid allocations to help the poor in rural areas would have to be over a longer period. Meanwhile the on-going programme must continue and money available should be used in one way or another to effect development, rather than being left unused. Some recipient countries might decide that they would do more themselves for rural development and would as a consequence welcome British aid for other sectors. This aspect could be considered on a case-by-case basis.
CONCLUSION
7. Winding up the discussion, the Chairman said that the meeting had been very useful to senior management. He said the danger was that the best could be the enemy of the good. More guidance would be developed and a request for ideas to implement the strategy from diplomatic posts would be included in the Fermanent Secretaries' next circular letter and followed up as needed. On the EEC Lomé Convention, those departments mainly concerned could seek further guidance from International Trade and European Department .
Finance Department
ODM
28 February 1975
CONFIDENTIAL