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7. You will observe that the more a project is likely to cost, the more information about it will be needed. If full information is supplied under the headings described there should be no delay in the approval of projects. In dealing with (b) 'benefits to be derived from the project' information should be given covering both direct benefits, e.g. sales of products, increase in Secondary School places, additional hospital beds etc. and indirect benefits, e.g. increased revenue to be derived as a result of the project, increased employment created both during construction and operating stages, and any relevant policy considerations. If any of the items are covered by a feasibility study, technical study, consultants' report, detailed cost benefit analysis, or other report, it will be sufficient to refer to these documents and to enclose copies, if they have not already been sent to the Ministry of Overseas Development.
8. Virement between items within a project will be within your discretion provided there is no material change in the project and no additional development aid is required. I shall, however, need to give approval in advance to proposals to transfer aid from one project to another. The existing rules on 'tying' would continue in force.
9.
The present C.D.& W. procedures involve meticulous and detailed financial requirements. I hope that the procedures described in this despatch will prove to be less cumbersome, particularly as less information is required for the less costly projects, while few projects are likely to be of the value of £250,000 or more, for which the greatest amount of detail is required.
10. Development aid will be issued quarterly on the same system as at present. For audit purposes I have it in mind to stipulate a single certified statement listing tue projects in existence, the amounts received from HMG and the total expenditure incurred on each project. The statement should be rendered as soon as possible after the end of the territory's financial year, and in any case no later than twelve months from that date. where projects run into second or subsequent years, the statement should also indicate total issues and total expenditures by projects to the end of the period covered by the statement. It should bear a certificate signed by the Financial Secretary to the effect that British development aid has been applied only to the purposes for which it was supplied.
11.
I should welcome any comments you may wish to offer on the proposals outlined here. A further communication will be sent to you in due course notifying the final proposals and setting out detailed accounting arrangements. The Minister of Overseas Development does not intend to make a statement in Parliament until replies to this despatch are received, and I should therefore be glad to have your reply as soon as possible.
12. I have it in mind, in the course of the next year, to publish a White Paper covering the history of the C.D. & W. Acts and also in due course a historical review and assessment of their purpose and what has been accomplished under them. It may be necessary to seek
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