18..

Although bilateral aid is normally tied to procurement of British goods and services, a limited amount of this aid can be untied, where appropriate, to meet local costs associated with aid projects. Some third country procurement is also permitted in particular cases; and all loan commitments can be untied for procurement in developing countries with incomes per capita of less than $200, if the recipient wishes. Budgetary aid, of which the United Kingdom provided % 14 m (£ 8 m) in 1976, by its nature cannot be tied formally to overseas procurement; however, the arrangements with the recipient countries are that offshore procurement supported by this budgetary aid will be from the United Kingdom, except where it would be clearly uneconomic to

do so.

Multilateral aid is untied for procurement in those countries that are members or associate members of those

institutions and if developed countries - are recognised under arrangements made in the institutions concerned as significant

contributors.

INDEBTEDNESS

9. The United Kingdom does not consider that the debt situations of developing countries calls for generalised debt relief measures providing automatic relief for whole groups of countries. However, when an individual country's debt situation becomes critical, we are always ready to consider, together with the other creditors involved, appropriate debt relief measures.

20. The major debt relief operation in respect of official

development assistance in 1976 was a debt refinancing grant to Pakistan amounting to $44.1m (£24.4m) This refinancing was made available to the Government of Pakistan as the United Kingdom's contribution under the terms of the Memorandum of Understanding on Debt Relief for Pakistan.

21.

c.

Distribution

() ALLOCATION OF BILATERAL AID

The UK Policy is to give help to the poorest countries and the poorest people within those countries. The overall change in emphasis to poverty oriented programmes

Share This Page