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FROM F CO
CONFIDENTIAL
CONFIDENTIAL
P/A- D
TO CERTAIN MISSIONS AND DEPENDENT TERRITORIES TELNO GUIDANCE 147 OF 28 JUNE 1977.
AID AND TRACE WORKING PARTY
1.
You should be aware of the recent review of aid and trade policy carried out by an interdepartmental Aid and Trade Working
The Report of the Farty under the Chairmanship of the DOT. Working Party has now been accepted by Ministers and copies are being sent under separate cover for the information of your
commercial and aid staff.
*
2. The purpose of the Working Farty was to consider what greater use of various administrative options consistent with the aid strategy set out in Command 6270 (The Changing Emphasis in British Aid Policies: More Help for the Poorest, presented to Farliament in October 1975) could enable us to gain greater commercial and industrial advantage from the operation of the aid programme than we do at present. There were three main conclusions in the Report. The first was that in future certain commercial and industrial considerations should be brought constantly and consistently into the calculation of the administration of the aid programme (paragraphs 5 and 7 of the Report). The second was that a limited use of the Credit Mixte technique (the association of capital aid with commercial credit on a conditional basis) should be accepted in broadly matching situations
and that other
ways of linking aid with credit where this would help exports
CONTILENTIAL
/should
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