TNAG-0597-FCO40-744-Future-of-Dependent-Territories-territorial-studies-1977 — Page 147

CONFIDENTIAL

Reference

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CODE 18-77

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the cuts of £50 million in 1977-78 and £55 million 1978-79, the total aid framework in cash terms continued to rise whereas the framework for the Caribbean dependencies fell. It was explained that by and large each dependent territory now had a reasonable infrastructure, although there was scope for further expenditure on tourism. Revenue earning and work producing projects were preferred but were hard to find. The framework figures were accepted in the light of an assurance that a bright idea would have a claim against contingencies if it could not be fitted into the existing ceiling. It was noted that Belize might have such a claim in respect of their banana project. On the whole, local Ministers did not focus on total aid framework figures. They were more concerned whether their pet Ministry (or con- stituency) project was agreed or not. (Small changes in the budgetary aid figures were later made in London to take account of the undertaking given to the BVI delegation in January and the decision to increase the Anguilla police.)

24. It was agreed that the new Aid Strategy was not particularly relevant to the dependent territories; what was needed was productive investment to generate wage employment. Discussion followed of likely revenue earnings projects eg hydroponics, assembly industries and mariculture. Some useful ideas might emerge from a consultancy currenctly identifying new projects in St Vincent. Sir Bruce Greatbatch explained that the BDDC intended to concentrate resources on projects which benefited island economies rejecting most of those which generated extra recurrent expenditure. The meeting endorsed this policy. Lerritories should not overlook the contribution to local taxable revenue made by emigrants who continued to remit money to their families. After tourism, increased quotas into the United States could therefore be the single most effective development project for the islands. Development plans were a valuable framework for the local governments' forward thinking and a useful mental discipline for Ministers. They should not be too detailed as they soon became out of date. They had to be an expression of local aspirations, tempered by professional advice from DevDiv.

25.

Poor communications was one of several administrative

difficulties: a letter from the Caymans to DevDiv and back could take six weeks. Annual visits to Barbados of Financial Secret- aries armed with outline project applications were therefore useful and welcome. These would also be able to identify where waivers might be needed since there was no quick way round this strict DOT requirement. Lack of local stock materials was another. OAGS were invited to discuss with their PWDs whether an unallocated stores account would help. Time would generally be saved if territories followed the Dev Div project check-list. The EDDC was about to issue a revised circular on project proced- ures. He hoped it would answer all OACS' uncertainties.

Manpower

26. A manpower policy was an essential planning tool; without one even the choice of scholarship awards was difficult.

It was thought that a middle level economist, perhaps on loan from the EPS, could do a rough manpower survey after about two weeks in each island. This would be a desk exercise as there was plenty of material. If the idea was presented as an aid to local development planning and not something imposed from london it was thought that Ministers would welcome it.

7 - CONFIDENTIAL

/Budgetary Aid