THE ROLE OF BRITISH AID

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1.

The reasonable needs of the Dependent Territories will continue to be a first call on our aid programme. In deciding

how aid resources should be used in the Dependent Territories,

our principal objective will be to create a political and economic climate that will make independence a realistic and

attractive alternative to continuing colonial status. We

recognise, however, that in some territories which lack natural

resources the possibility of genuine economic independence is

remote. In the past, a generous allocation of development aid

(and in certain cases also budgetary aid) has often formed a

vital ingredient in achieving a final independence agreement. The possibility of similar action will be borne in mind in

future cases, subject to the overall constraints placed on the aid programme by the Government's general economic policies.

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