TNAG-0339-FCO40-375-Aid-to-Hong-Kong-from-UK-1972 — Page 24

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- 5 APR 1972

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CSAD

West African Department

Rhodesia Economic Department

West Indian Department

Hong Kong Department

Economists Department ( General Review only)

Southern European Department EID 1. (General Review only

CDC ANNUAL REPORT 1971

for Mr Laidler's attentic

1. As you know the Commonwealth Development Corpor- ation are required under the Overseas Resources Development Acts to make a full report each year on the exercise and performance of their functions during the preceding calendar year. The Government in turn is required to lay a copy of the Report before each House of Parliament.

2.

We have just received via ODA the drafts of Parts I and IV of the CDC Report for 1971. I enclose Part I which contains the General Review of the year's activities and an extract from Part IV relating to countries with which you are concerned. As CDC are working to a very tight time-schedule I would be grateful if you would send any comments which you wish to make, direct to Mr R M Prideaux, Aid Policy Department, ODA with a copy to FPAD, by close of play on Thursday 30 March.

3. This is of course CDC's own report, not HMG's. We should not therefore comment on the text unless there is anything in it which is likely seriously to embarrass UK Ministers or be offensive to an overseas Government, or which constitutes a gross inaccuracy. In this connection, paragraphs 8 to 10 of the General Review could perhaps be regarded as potentially embarrassing to the Government.

However, the question of financing the CDC's operations is primarily a matter for the Treasury whose views are being sought by the ODA. FPAD's view is that, while it is probably not feasible to ask CDC to remove the paragraphs, it would be suggested that the language in which they are couched should be toned down.

DP 896438 140609 500M 7/7) GM 3443/3