CONFIDENTIAL

OVERSEAS DEVELOPMENT ADMINISTRATION Eland House, Stag Place, London SW1E 5DH

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GTN: 273

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pad 2310

Mrs S Flint

HM Treasury

Parliament Street

SW1

Hie B 243/1

Our ref

Date 9 October 1989

OVERSEAS AID VOTE:

WINTER SUPPLEMENTARY ESTIMATE

Alex Lamond sent you the draft Winter Supplementary Estimate for the Overseas Aid Vote (Class II 5) on 29 September. We have since discussed some changes which may be needed to the estimate; these can fairly readily be made at the proof stage. This letter describes the changes. I am copying to others involved to seek agreement when necessary to the action proposed.

St Helena

2. The draft supplementary estimate included a provisional figure for the costs of the St Helena Ship which are to be met by the Scottish Office. The figure will in fact be higher than that shown in the draft: we are considering the exact figure with the department but we estimate it at up to £9.3 million. The increase in voted provision for the extra costs in 1989-90 will be matched by a PES transfer of resources to ODA from the Scottish Office.

Refugees

3. It has been agreed within the FCO that the financial responsibility for a UK contribution to a regional assessment centre for Vietnamese Refugees waiting for settlement should be undertaken by the ODA. £5 million was pledged for this purpose at the Geneva conference on refugees in June. Other costs in Hong Kong associated with the Vietnamese boat people will continue to be the responsibility of the Diplomatic wing.

4.

This will require an increase of £5 million in the provision for multilateral assistance to refugees on the aid vote (subhead B3 (10) and an increase in the cash limit. It was originally envisaged that resources for this purpose would be found from the Reserve. It is now proposed that they should be provided by PES transfer within the FCO from savings on Diplomatic Wing votes arising from lower than expected costs of a UK contribution to the UN force in Namibia.

CONFIDENTIAL

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