TNAG-0128-FCO40-164-Development-aid-1969 — Page 69

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Draft Continuation Sheet

CONFIDENTIAL

these procedures and if they appear excessively

demanding I will investigate whether they can be

modified.

5.

In future each territory's overall development policy

and programme will be considered here es hitherto

and H.M.G. will enter into a forward commitment to

Having regard to the

provide £x development aid over a period of years

ahead (usually three years).

probably rate of expenditure, we shall indicate how it

is expected that disbursements by U.K. financial

years will be phased and in general terms the sectors

on which such aid is expected to be concentrated.

and States

budgetary aided territories/it will be expected that

development aid will be devoted to the maximum

extent possible to productive development with a

view to an increase in local revues which will help

In

to reduce and it is hoped eventually eliminate the need

for budgetary assistance. It is recognised of course

that in some of the smaller territories the scope

for economic development is limited. Although it

will be expected that expenditure planning will be so

arranged as to keep within the disbursement figures

indicated for each U.K. financial year, it is

recognised that it is not possible to combire smooth

administration of longer-term programes with rigid

limits on the annual expenditure, and some flexibility) will

probably be permitted subject to the fact that we

are ourselves constrained by annual ceilings on total

aid disbursements.

6.

Development aid, whether grant or loan, will as

now be provided for approved individual projects but

a "project" could be, illustratively, a building or

part of a complex of buildings, c.g. an office block,

school or hopsital; a vessel; a defined phase of a

/roads

3.