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the amount of aid going to the colonies in the period up to 1976 is declining. We accept the point that in some islands at least we have pretty well completed the basic infra-structure needed for the islands' development and a reduction in the level of our aid might seem a natural consequence of our success in this field.
But I wonder whether, in some areas at least, we should not be
doing more in the fields of education, health and social welfare, including recurrent expenditure where necessary. Perhaps this could be carefully examined. We are anxious to ensure that
conditions in these islands should reflect credit on us rather
than expose us to adverse criticism.
13. We also wonder whether we could not usefully move further over to a system of block grants for dependent territories in receipt of grant in aid. I attach a separate note on this point. I believe that these colonies would be in a better position to manage their finances sensibly were they to know three or four years ahead roughly how much budgetary support they could expect from us.
United Nations
14. We welcomed the increase in our contribution to the UNDP from £6 million to £8 million this year. We think our contri- butions to this bring us good commercial business in procurement orders. Our present record is pretty good but we now rank after Canada, Denmark and Sweden as well as the USA and we should not like in future years to slip any further behind.
If we did so,
this could weaken our general position in UN bodies dealing with development matters. The present framework provides for an increase from £8 million to £9 million in the last year of the framework. We would like the position to be reviewed and con- sideration given to a larger increase in our contribution during this period.
India
15. In the covering memorandum with which the Secretary of State commended the current aid framework to his Cabinet colleagues, he
said that it was his intention to maintain the level of aid to
/Commonwealth
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