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(viii) I think, therefore, that we may have to ask you to look again at some of your other proposals for the allocation of the £12.4 m.
(B) Independent Commonwealth
(i) India and Pakistan
In
We have no fundamental objection to the proposed increase of 25 a. although some doubts have been expressed inter-departmentally whether part, at least, of this money might not be used to greater political and economic advantage in non-Commonwealth countries. the light of the aid/trade talks in India last March, we have some reservations about the provision of additional aid to India in non- project form, with its attendant "switching". I should not have thought that the difficulty of finding viable projects precluded this.
(C) Foreign
(i) Afghanistan
We shall need to enter a proviso on your suggested compromise to the effect that £100,000 will be available provided the reconnaissance by Middle East Development Division identifies a worthwhile project. Your proposal in its present form is too indefinite to meet our requirements as agreed by our Permanent Under-Secretary.
(ii) Latin America
We wish to increase our capital aid and technical assistance to Latin America and we hope we may be given an opportunity to try to identify possible uses for it. Douglas Smith will undoubtedly come back from his visit to his new parish with ideas and proposals for aid projects.
(iii) Tunisia
North African Department are in urgent correspondence with you about the communications project. I strongly support their plea that the present scheme costing £150,000 over three years be adjusted to accommodate this project now estimated to cost £170,000 over two years. Tunisia has been devastated by floods and for political, moral and developmental reasons it is important that H.M.G. plays its part in the international effort now under way to rehabilitate the economy of the country. I have been reminded that the revised instructions to posts overseas on aid administration state that loans and grants may be made to independent countries to deal with the effects of natural disasters on development, which indicates that the communications project falls within the aid criteria.
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