5.
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In summary form, the proposed increases are:-
a. Colonies
£1.00m.
b. Commonwealth
5.95m.
c. Foreign
.01.
d. CDC
2.00m.
e. Multilateral
0.362m.
f. Technical Assistance
1.628m.
£11.95m.
6. we have not been unmindful of the case for Afghanistan represented in O'Brien's letter FSA 6/1/1 of 8 October.、 We have concluded however that we would not in present circumstances be justified in proposing an allocation for that country. We have all along been only a very minor donor and our past experience has not been particularly happy. There has been the utmost difficulty in finding sensible projects, even although the country possesses development potential, and it is doubtful whether we are sufficiently well organised to undertake a worthwhile programme there. We believe that the developmental advantages are likely to be minimal and it also seems doubtful whether a programme of the size envisaged, even if it could be satisfactorily mounted, would bring appreciable commercial advantages compared with the massive effort being put in by the USA and USSR (although we have not yet had the Board of Trade advice on this particular point). If the FCO nevertheless wish to pursue the question, we should first wish to consider bringing Afghanistan into the area covered by the Middle East Development Division and asking them to widertake a reconnaissance into development possibilities within our means which we could examine.
7.
In the course of our review, various other possible requirements have come to notice. We have not however proposed allocations at this stage in view of the uncertainties which at present attach to them. .hey can if necessary be
considered as candidates for the Contingency Reserve or for any underspendings which may occur elsewhere in the programme as 1970/71 proceeds. For the recori, however, items we have in mind are:-
a. ETHIOPIA
The Ethiopians have at long last submitted proposals against the long outstanding 22m. loan. These have not yet been fully examined in detail and precisely what is acceptable or what the phasing is likely to be has not yet been establised.
b. GAMBIA
We have said that we are willing in principle to consider a further loan of £300,000 to finance extensions to Yundum Airport. This is however dependent on the recommendations of a feasibility study which is shortly to take place.
c. KENYA
We may wish to reassess the case following talks which we have offered to the henya Government but which are at present proving difficult to mount. Although we envisage that these discussions will be of a preliminary nature only, they may give us a better idea of Kenyan needs and wishea.
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FYE
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