TNAG-0618-FCO40-766-Aid-framework-from-UK-to-Hong-Kong-1977 — Page 15

All Heads of Department (except Mr Glason,

Mr D F Smith and Mr L V Martin)

AID FRAMEWORK : NEW AID PLEDGES

CF 245/224/012

13

Mu. Jasper Bula

du Upton (quad.k)

uptim Two winter lord.

ли

Dim

Mr.

In response to a recent OIM proposal to increase a bilateral capital aid pledge the Treasury have emphasised their concern "about the inadequacy of the ODM's provision for contingencies in 1978-79 and 1979-807 in our revised aid framework proposals", and have said that, until agreement has been reached between the Treasury and ODM about the total size of the contingencies allocation, they "would need the strongest grounds for agreeing to any further call upon it".

2. In paragraph 1 of my minute of 5 August I noted that the level of contingencies proposed in the new framework for 1978-79 and 1979-80 had been questioned and that the settlement of differences between the ODM and other Whitehall departments leading to an agreed framework might take some little time. Planning for expenditure in future years could be seriously undermined if, as a general rule, the Treasury were to reject OIM proposals for increasing bilateral or multilateral expenditure for 1978-79 and/or 1979-80 above the levels shown in the aid framework. I should be grateful therefore if you would let me know immediately if you encounter difficulties in attempting to secure Treasury agreement to new aid pledges, either bilateral or multilateral.

har

K G Fry

Finance Department

8 August 1977

4KK 093/548/2.

23

فند

#

IND...

Copies for information to:

Mr Preston Mr Fogarty

Mr Porter

All Administrative Under-Secretaries

Mr JK Wright

Heads of Dev Divns

Mr Bridger

Mr Glason

Mr D F Smith

Mr L V Martin

All members of Finance Department

Mass Leblane. We retain are

One copy fun HK Section

•11/8"

of Plenty for to his own sons (8) 2.01)

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