of Government House should be inserted. If this extra item were acceptable to the local government special additional grant-in-aid would be provided which, it would be made clear, would not be available for anything else. In justifying this extra item, you could point out that Government House is part of the territory's assets and heritage, and it is therefore in the territory's own interest that it should be preserved and properly maintained.

you

5. This is of course only a suggested way of proceeding: may be able to think of a more effective way of making it clear to your ministers that money provided for this purpose is additional money, and not provided in place of funds for other purposes, to which they may attach more importance. In the Caribbean it might be feasible for DevDiv to present the proposal in the course of their normal budgetary visitation as a new proposal covering all grant aided territories throughout the world. I am copying this letter to John Edwards: if you think it would be helpful for DevDiv to take this burden on so as to divert odium from more vulnerable OAGS, perhaps you would let him know.

6. This proposal comes I fear a bit late for this year's budgetary exercise. Is there any prospect nevertheless of its being introduced for 1979 on the basis described above (it would not of course affect the calculations for the main part of next year's estimates where these have already been approved)? If you think you can go ahead, and assuming that DevDiv agree (they should know that this letter has Ken Fry's blessing, I suggest that you should now prepare estimates of costs agreed between yourself, your government and Dev Div. We can then authorise the necessary funds.

cc J Edwards Esq

British Development Division in the

Caribbean, Barbados

K Fry Esq, ODM

PC Duff Esq WIAD/FCO

Distribution:

Mr CH Godden, Anguilla

Mr J A Davidson OBE

British Virgin Islands

Mr G W Jones CBE Montserrat

2

Mr G C Guy CMG CVO OBE St Helena Mr JC Strong, Turks and Caicos

RJT McLaren

Hong Kong and General Department

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