TNAG-0597-FCO40-744-Future-of-Dependent-Territories-territorial-studies-1977 — Page 62

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it is unlikely that a significant amount of valuable aid will be enabled to be channelled into agricultural projects although lines of credit could be opened for the provision of agricultural inputs.

3. In order to achieve these objectives a very substantial proportion of UK assistance should be through the provision of programme aid (especially sector aid and capital goods aid), for institutions whom we have reason to believe are competent.

4. We will also have to continue with the present provision of 40% for local cost aid as this is essential if White Paper Aid policies are to be pursued.

5. In view of the general level of poverty and the poor economic prospects prevailing in Bangladesh it should be provided in the form of grants.

*

6. We would also need to provide an increasing amount of technical cooperation through consultancies, training and expertise. Farticularly important would be the provision of forms of expertise which would assist in the general management of the public sector.

Implementation of the Aid Programme

In order to implement the above policies we should:

Strengthen our capacity to identify, prepare and assist with implementatio of projects by the provision of

ii We should despatch special Missions to assist in the following sectors

iii

We should appoint consultants to carry out specific studies for

iv We should have further discussions with the following Whitehall Department

to resolve current problems

CONCLUSIONS.

1) Provided worth while proposals are put forward we should seek to

in real terms our aid programme.

increase

2) We should attach priority to assitance for public sector infrastructure

projects which will assist economic development - particularly transport an power. We should also help to rehabilitate existing manufacturing processe do what we can in rural sectors and assist with population control and management.

3) Our aid, in order to achieve these objectives, would have to consist of

ล a large proportion of programme aid

at least 40% local costs

provided in grant form

a higher proportion of T.C.

4) In order to implement our programme we need to:

A.

b.

C.

d.