TNAG-0429-FCO40-494-Programme-Analysis-and-Review-(PAR)-Future-of-Dependent-Terr-1974 — Page 84

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

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of the political considerations arising from the

ture and extent of future British interest in the

territory and our concern for its social and economic

conditions. Generally, this will mean that, where

our objective is constitutional independence, aid

policy should be directed towards achieving economic

independence at tolerable standards of living which a

territory can sustain. There may however be

The

territories in which it would be justifiable to raise

standards higher than they can sustain unaided; this

would usually mean prolonging their dependence on

development aid and perhaps even budgetary aid.

studies of individual territories, which the

Report recommends, would identify these cases. The

Treasury, we know, have doubts about the desirability

of a substantial increase in aid to the dependencies,

given the other pressures on the aid programme. We

recognize this competition for resources, but the aid

! programme is growing, and it would take time before

new aid policies for particular territories were

translated into additional disbursements. We do not

think it would be impossible on present plans to

find the money to finance such cases where they are

shown on balance to be desirable.

CONCLUSION

6. HMG's policy towards the few small remaining

dependencies should be determined by an assessment

which gives more weight to the political costs and

benefits of maintaining dependency, Tether than to the

quantifiable costs of defence and aid. We invite our

colleagues to agree with the political conclusions

set out in paragraph 2 above, to advise on the choice

between the alternative economic aid policies

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