FCO Aiu Committee
CONFIDENTIAL
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AC(72) 2
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THE AID PROGRAME
1.
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Since my circular AC(72)1 or 28 January CD have run into serious budgeting problems in relation to the aid framework for 1972/3 and subsequent years.
As a result of probable disbursements exceeding the financial provisions in the framework, they are faced with the need to make cuts of about £30m in the projected aid disbursements for the next financial year and comparable cuts in subsequent years. One of the consequences of this is that next year's aid framework will not be able to provide funds for relief and reconstruction in Bangladesh whereas it had previously been hoped to find £20m for this purpose within the framework.
2.
The Aid Framework paper to which I referred in my circular of 28 January has been withdrawn from the Defence and Cversea Policy Committee of the Cabinet and a revised draft to take account of the situation in the Indian sub-continent and of the new budgeting constraints is being prepared by ODA. We expect to receive it early this week and will give it FCO Aid Committee distribution.
3. CDA wish to hold an inter-Departmental meeting to discuss the revised draft paper on Monday, March. Ne have therefore arranged an Aid Committee meeting on Friday, 3 March at 11.00 am in the India Office Council Chamber, King Charles Street. The meeting will be chaired by Mr Bottomley. I should be grateful if members of the Aid Committee would kindly inform this department (Mr Ducker, Ext GCGCE 205) whether they will be able to be present at this meeting and whether 'they intend to bring anyone with them.
28 February 1972
DM kerr Secretary
CONFIDENTIAL
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