TNAG-0128-FCO40-164-Development-aid-1969 — Page 34

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The O.D.M. have now produced their draft aid framework for

1970/71. This has been delayed pending Ministerial decisions on

the level of the aid programme and the first interdepartmental

discussion is taking place at fairly short notice on 15 August.

I attach tables giving a Summary of the Framework and details of

allocations under the following headings: Colonies, Foreign,

Independent Commonwealth, Multilateral Aid and Regional Technical

Assistance. The figures exclude special aid for Malaysia and

Singapore. They make no provision for pensions for indigenous

Southern Yemenis.

2. The figures shown for 1970/71 are forecasts of disbursements

and are, for the most part, derived from existing commitments or

quasi-commitments.

This means that the margin for manoeuvre is

very slender. The basic aid ceiling remains at £205 million for

1970/71 and it will not be possible to increase a particular

allocation without a corresponding reduction elsewhere. In

arriving at their total figures, O.D.M. have taken into account

the fact that there is always a considerable short-fall of

disbursements as compared with the estimates (the estimating

adjustment). This, and the inclusion of an additional £7m. for

I.D.A., is why the total amounts to £232 million.

3. I should be grateful for comments on the aid framework by

close of play on 13 August. Developmental aspects of proposed

outlays will already have been fully taken into account by the

O.D.M. and you will no doubt wish to concentrate on the political,

economic and commercial implications for U.K.'s external relations.

4. The figures for the colonies have been provisionally agreed

with the F.C.O. departments concerned already as representing their

reasonable needs in 1970/71.

5. As you know, a Whitehall Working Party has reviewed the

criteria which should guide the British aid effort and its report

has been accepted by Ministers. The report sets out guidelines

which will shortly be circulated to posts in countries which

CONFIDENTIAL

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