TNAG-0618-FCO40-766-Aid-framework-from-UK-to-Hong-Kong-1977 — Page 16

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CF 245/224/012

Min

All Heads of Department (except Mr Glason,

Mr D F Smith and Mr L V Martin)

cc.

(for information)

Mr Preston

Kr Fogarty

Kr Porter

All Administrative Under-

Secretaries

| Mr J K Wright

AID FRAMEWORK 1977-78 to 1980-81

·8 AUG 1977

HKK 093/548/2

Heads of Dev Divs

Mr Bridger

Ir Glason Ir D P Smith Mr L V Martin

All members of Finance

Department

Revised Aid Framework proposals dated 24 June 1977 were circulated with JAPC(77)16. Our aim, as usual, was to have an agreed Framework which ODM Departments could take into account in their submissions for the Main Estimates. Once again, however,

others wish unresolved differences within Whitehall are likely to thwart that aim: to see lower figures for India whereas the Minister wishes the Framework to show the higher run proposed in the present draft, and there is a view that the contingencies margins proposed for 1978-79 and 1979-80 are insufficient for the calls thought likely to be made on the aid programme in those two years. no prospect of settling these differences satisfactorily before October.

There is

2. I know that you need to have "agreed" Framework allocations for 1978-79 as soon as possible in order to plan effectively and to put forward your submissions for the Main Estimates. In present circumstances you should assume that the details shown in the draft Framework dated 24 June 1977 stand, for working purposes, subject to three modifications:

3.

i. India: The higher run of figures will remain, at least for the time

being, but South Asia Department will wish to bear in mind that those figures are not accepted by the other Whitehall departments concerned and that the difference between the "higher" and "lower" runs may eventually have to be transferred to contingencies.

ii.

Special Action: Figures of £34m will be shown in the eventually agreed Framework for each of the years 1978-79 and 1979-80. The contingencies amounts for those years will be reduced correspondingly.

iii. Portugal: Special balance of payments support totalling $20m over the The aid two years 1977-78 and 1978-79 has been approved by Ministers. programme for 1977-78 is being increased by $5m to take partial account of this.

I should again stress that the Framework has not been agreed by other Whitehall departments or approved by the Minister. As soon as such agreement and approval has been obtained I will advise further. The proposed figures for 1978-79 and subsequent years are of course subject to the usual hazards of this year's PESC and whatever indices the Treasury may eventually supply for revaluing the agreed PESC figures into cash but those are factors which will have to be taken into account in next year's Aid Framework exercise.

LaF

K G Fry

-

Finance Department

5 August 1977

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