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(ANNEX 17)
5. The Development Division will make annual visits in mid-year to each territory to review the triennial framework in the light of economic prospects over the next three years rolling it forward by one year and finalising the framework for the year immediately following. The findings of the annual review which will be in current year prices, together with an adjustment to convert the first of the three years into cash prices (ie including projected inflation) in accordance with the agreed formula, will take the form of recommendations to myself for appropriate levels of budgetary support.
6.
The arrangements described in this despatch and its enclosure represent an advance on those now in force. They provide advantages for both donor and recipient. It will be possible to fix the limit of the British Government's commitment and help to determine more accurately than in the past forward provisions in planning the aid programme for future years. The rules are also designed to enable your Government to exercise a greater degree of financial responsibility within the limits which must be laid down in view of my responsibility to Parliament, and to provide you with increased flexibility to determine your own priorities in Government spending and forward planning.
7. I should be grateful if you would bring the contents of this despatch together with its enclosures to the notice of your Executive Council. It replaces in part the provisions of a 1966 Despatch to dependent territories which was not of course sent to Anguilla. For ease of reference those parts of the 1966 Despatch which remain extant are contained in Annex B.
8.
I am aware that, because of your reliance on external assistance, your Audit Report may be delayed for reasons beyond your control. Appropriate allowance will be made for this in the implementation of paragraph 6 of the new rules.
October 1978
I have the honour to be Sir
Your most obedient humble Servant.
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