TNAG-0339-FCO40-375-Aid-to-Hong-Kong-from-UK-1972 — Page 22

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RÝ SVED IN

REGISTRY Ne. 5?

-5.PR 1972

5/12 M Cra

MR LOGAN (PS to Mr Royle W 57)

AKK 5/12

Copies to: Mr Wilford

Mr Laird (Hong Kong Dept K 246)- Mr Gordon (SEAD W 85)

En

日

1. In your minute of 7 March to Mr Gordon you invited comments on the difficulties facing ODA over the 1972/73 aid framework. I do not think there will be significant effects on our interests in territories for which this department is responsible. The details are as follows.

INDONESIA

2. Total aid commitments through the Inter Governmental Group on Aid for Indonesia (IGGI) since 1968 have totalled approximately US$2.1 billion. At the last meeting of IGGI in December 1971 it seemed likely that the US$670 million of new aid commitments requested by Indonesia for 1972/73 would be fully subscribed by the member countries. The British contribution would be £6.8 million under ODA's revised proposals. This figure represents a reduction of £0.7 million on the figure previously forecast but since the rate of disbursement in Indonesia has hitherto been slow, the amount actually paid out in aid in 1972/73 is unlikely to approach the reduced commitment total. (The recent revision of the aid framework does not of course mean that the total amount of British aid available for 1972/73 and subsequent years has been reduced since the annual estimate relates only to the amount of aid committed in any one year.) In the unlikely event of our spending in Indonesia in 1972/73 approaching the new £6.8 million limit, ODA might have to restrain aid payments in the latter part of the year.

SINGAPORE

3. The singapore figure is £6.5 million. Aid estimates are unlikely to reach this total unless negotiations are successfully concluded for a proposed gift of buses which would be a large item. It is not clear at the moment whether this project will be fulfilled in 1972/73.

MALAYSIA

4. The aid commitment for Malaysia is £4.5 million, £0.5 million down on the previous forecast. Disbursements are unlikely to reach this level in 1972/73.

FIJI

5. The aid commitment for Fiji is $1.5 million, £0.25 million down on the amount quoted in the loan agreement signed in October 1970. Fiji is underspent and disbursements are unlikely to exceed (or reach) this level in 1972/73.

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