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Mr Fogarty

All Administrative Under-Secretaries

AID FRAMEWORK 1977-78 to 1980-81 (Supplementary Note)

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1:31|3.

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HKK 093/548/2.

Mr Preston

Mr D Williams

Mr Porter

Mr JK Wright Mr Bridger

Mr Bawden Mr Stickels Mr Thorpe

In my minute of 28 March I explained that although Heads of Departments had offered to reduce their aid framework bids for 1977-78 by £31.2m, more reductions would be needed. The size of those further reductions will of course depend on a number of factors, including the possible adoption of one or more of the policy options outlined in my minute. In order to help discussions at the meetings on 1 and 4 April, the Geographical Division of EPS have suggested, after consultation with geographical desk officers, certain areas where further reductions may still be possible. These reductions are centred particularly on 1977-78, but also include some suggested changes for later years.

2. In putting these suggestions forward account has been taken of the fact that some departments may still be over-optimistic about the levels of disbursement they will actually be able to achieve in 1977-78. The further changes, including those for the later years, now proposed are summarised in Annex A; in 1977-78 they could provide a further £19.0m towards the required reductions.

3. During the first examination of bids by Finance Department and EPS we were forced to a large extent to concentrate on 1977-78. We did however identify possible modifications in some bids for later years. These were incorporated in the draft framework which accompanied by minute of 28 March. For convenience I list the countries/programmes concerned:

Botswana Ghana Kenya

Rwanda

Falkland Islands Solomon Islands

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K G Fry

30 March 1977

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New Hebrides

Guyana

Brazil

Afghanistan

Jordan

Inter-American Development Bank

UNICEF

UNRWA

World Food Programme

P.S. Also copied to Heads of Department except Messrs Glason, D F Smith and

L V Martin

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