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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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