TNAG-0339-FCO40-375-Aid-to-Hong-Kong-from-UK-1972 — Page 39

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confusion and inconvenience for them. In fact, under the new administration arrangements, we regard this readjustment as essential.

5. In the circumstances, I hope that you can now agree that in the framework Summary the "Dependencies" allocation should be abolished and replaced by headings for "Dependent Territories" and "Associated States"; and similarly that in the framework tables for both Capital Aid and Technical Assistance the "East Caribbean" allocation should be replaced by headings for "West Indian Dependent Territories" and "Associated States".

6. If this is done we would of course expect that the planning figures would continue to be calculated on the basis of each territory's individual needs and capacity to implement programmes. We have noted the suggestion in para. 9 of the memorandum enclosed with Mr Bell's letter of 28 January that for the future, the figures should be negotiated with Governments as representing "planning levels", and not as "basic allocations" or disbursement targets which they would be expected to meet. We agree with this. We alse A note the suggestion that for purposes of internal working within the departments concerned (i.e. in Development Division and also presumably in Whitehall), it might be useful to adopt a notional "minimum disbursement level" for each territory, without broadcasting the fact to the territories. No doubt you will be letting Caribbean and West Indian Departments have your views on this.

7. So far as the presentation of figures for other. Dependent Territories is concerned, the current practice whereby separate entries are given in the framework for British Honduras, Gibraltar, Seychelles and (usually but not always) Hong Kong, seems to us a satisfactory arrangement and we should be glad if similar "individual territory" treatment could in all cases be given to the three Pacific territories, BSIP, GEIC and New Hebrides, which at present are often grouped together under the single heading "Pacific". Here again, we assume that the individual requirements of the smaller territories will continue to be looked at in consultation with desk officers. In general we suggest that once a particular pattern is established in the aid framework tables, it would be desirable to try and adhere to this consistently, in order to facilitate comparisons as the figures change.

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