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Commonwealth countries in real terms. But I do wonder whether
the present proposals to effect an increase in real terms in aid to India for the years 1974/75 and 1975/76 are well based and fully reflect the principles recommended by the Adams' Committee; and whether, in terms of British interests, this extra money could not be better spent elsewhere. Perhaps this point might be gone into in greater detail between those concerned in the two wings of our office. The point I should like to put to you is that, if you wish to maintain your proposals for these further increases of aid to India, we feel it is incumbent upon ODA to make out a convincing case in favour of doing so.
Uganda
16. In the present crisis it was of course inevitable that a decision should be taken to give no new aid to Uganda. We endorse the proposals set out in a recent ODA telegram for the stringent implementation of this decision. We are also very glad that you have been able to convince the Treasury that new money should be provided to enable you to meet the cost of resettling those Ugandan Asians who are accepted by developing countries. This situation is likely to continue for some time but, were there to be a change of regime in Uganda, we might wish to consider the resumption of an aid programme there.
European Development Fund
17. I realise that work is only now commencing on quantifying the level at which we shall be obliged to contribute to the EDF in 1975/ 76 and subsequent years. It is perhaps too early to attempt to tie these contributions down to specific figures. There are so many
uncertainties which have to be resolved
Ge
in particular we do not
know how many Commonwealth Associables will choose the first (Yaoundé) option. On
On the assumption that there will be a time-lag in drawing down contributions at the start of a new Fund we are reasonably content with the figure of 25 million in the present framework for 1975/76. However, there will clearly have to be provision for a rapid rate of increase in disbursements in later years and we suggest a very substantial sum should be earmarked for
/the BDP
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