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these proposed cuts have not been insisted upon and I am glad that this is the case. But I believe the request should not
have been made.
Basis for the Suggestions Made
5. Most of the changes in emphasis which I go on to propose arise from the approach recommended by the Adams report which is being worked out in the current PAR exercise. Others, notably those concerning Egypt, Oman and Turkey, are the subject of dis- cussion between the geographical departments in our two wings.
Oil Producing Countries
6. We should like to see an increase in technical assistance
given to Nigeria and Algeria and the favourably-disposed oil- producing countries in the Gulf. We beliove this would both contribute to a more assured supply of oil and also obtain significant commercial benefits for us in these rapidly expanding markets. At first sight, it may seem surprising to contemplate
even technical assistance to such rich states as Bahrain, Kuwait,
Qatar and Saudi Arabia, but we believe that, while they are not of course short of money, some at least of them would benefit by more expertise in their administration and that this is a rôle we might fill with profit to ourselves, even if we do so on a repayment basis in some particular cases.
Malaysia and Singapore
7. I understand that the ODA proposes that no further capital aid should be given to Malaysia after the present programme of Special Aid is completed. We feel this would be a mistare. We should like to see the programmes both of capital aid and tech- nical assistance to Malaysia maintained at roughly their present level. Malaysia continues to face a threat of communist ingur- rection and we are, of course, much concerned to play a part in maintaining stability in that region. Malaysia is also a most important market to British exporters and we have considerable investments there. We believe our aid programme could help
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