TNAG-0339-FCO40-375-Aid-to-Hong-Kong-from-UK-1972 — Page 53

CONFIDENTIAL

REGISTRY NG ST

HKK SIN

и с собойчу AG(72)4 th th

FCO AID COMMITTEE

AID COMMITTEE MEETING ON 3 MARCH 1972

Present:

Mr JR A Bottomley (Chairman)

Mr M G Smith (ODA)

Mr JA Turpin

Mr S J G Fingland

Mr A D Parsons

Mr DA Scott

Mr K M Wilford

Mr P H R Marshall (FPAD)

Mr A Brooke Turner (SED)

Miss PJ Harvey (Economists)

Mr H B C Keeble (UN(E & S) )

Miss L ET Storar (

(CCD) Mr T R Webb (Economists)

Mr JH Fawcett (Caribbean Dept) Mr D M Kerr (FPAD)

Mr J de C Ling (WAD)

Mr P J Goulden (Planning Staff) Mr M D Laidler (EID)

Mr CA K Cullimore (FPAD

12/3

1. The Chairman asked Mr Maurice Smith of ODA to introduce the revised Aid Framework proposals and to answer detailed questions on their composition. Mr Smith explained the reasons

hy it had been necessary to alter the figures in the paper which had been presented to the Cabinet. This need arose principally from ODA's increased capacity to disburse aid quickly. Whereas in the past actual disbursements tended to be a quarter lower than estimated the gap had now narrowed to one-eight. Unless reductions were effected ODA was bound to overspend their vote provisions in 1972/73 and subsequent years. There was little scope for flexibility in 1972/73 but the figure for "conting- encies and wedge" in later years provided greater flexibility and a wider range of choice which would enable new directions to be given to the Aid Programme in accordance with the recommendations in the Adams Report.

2. In the discussion that followed, the following principal points were made:-

i.

ii.

-

The Dependencies

the Dependencies rightly had

the first call on our Aid Programme. They were in a different category from all other countries since we have a direct responsibility for their administration. Aid was a tool of our management and government of these territories. Generally speaking the Dependencies were able to spend all the aid money allocated to them.

Eastern Caribbean The figures provided for increased aid to most of the islands in the Eastern Caribbean, but the provision for the four Windward Islands was seriously inadequate. They represented a cut of some 50% compared with the current year. Mr Smith undertook

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CONFIDENTIAL