TNAG-0248-FCO40-284-Effect-of-entry-of-UK-into-EEC-on-exports-from-Hong-Kong-1970 — Page 95

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provision was made for certain aid to revenue earning projects

to be made available on a loan rather than a grant basis; for

the most part these were "soft" loans with relatively low

interest rates and long periods of repayment, but the terms

in each case were tailored to the project concerned and to the

creditworthiness of the state receiving the aid. Thirdly,

provision was made for advances to stabilisation funds in the

associated states to help mitigate the consequences of temporary

fluctuations in commodity prices. These advances are repayable,

and are charged against normal aid to the extent that they are

not repaid. Finally, a part of the aid was used for technical

assistance linked to capital investment (e.g. pre-investment

surveys and assistance in preparation of projects) and for

technical cooperation (e.g. provision of experts, research,

assistance in drawing up development plans, fellowships,

occupational training etc.). There was a marked shift in the

emphasis of the projects supported by the second fund as compared

with the first. Almost half of the amount committed by early

1968 was for rural modernisation, a third for infrastructure, and

only a tenth for education and training.

Industrialisation

projects remained at only around 1 per cent of the total

commitments.

13. It is not possible to forecast the way in which the third

fund will operate. But it is possible that European Development

Fund aid will be more orientated than before towards industrialisa-

tion, and will also give preference to projects involving more

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/than one