TNAG-0618-FCO40-766-Aid-framework-from-UK-to-Hong-Kong-1977 — Page 95

CODE 18-77

(BMSO 12/76)

RESTRICTED

Reference.....

བ་ས་སས་་་་་་་---

set out in Annex A and the White Paper "The Changing Emphasis in British Aid Policies: More Aid for the Poorest" Cmnd 6270).

Inflation

8. It is important that departments make allowance for price changes on a consistent basis when formulating their bids, because bids are in cash. The likelihood is that annual rates of inflation will not be very different from those anticipated in last year's aid framework exercise (11% capital aid, 15% technical cooperation up to 1978-79, and 10% across the board in 1979-80). In preparing bids for 1980-81 departments should assume that prices will continue to increase across the board by 8%.

Action Required

9. Departments are requested to complete the attached forms and to return them to Mr Leverington (E618) by 24 February.

Bids, particularly those for 1977-78, should reflect additional amounts authorised from contingencies since the previous framework was issued. Bids for allocations greater than those already approved should be clearly explained and justified.

10. Detailed instructions for consultation, judging the category of commitment and treating technical co-operation are in Office Procedure II B 2.01.5, 6 and 7 (but please note my paragraph 1 above on the geographical breakdown of functional technical co-operation).

11. Compiling and editing the aid framework is a major task and it would be very helpful if returns could be forwarded to Finance Department as soon as possible without waiting for the closing date. It is essential that all returns should reach us by 24 February. The time allowed is short, but I am sure that everyone concerned understands the need to keep to this timetable.

hap

K G Fry

9 February 1977

Copies for information to:

Mr Preston

Mr Fogarty

Mr D Williams

Mr Porter

All Administrative Under-Secretaries

Mr JK Wright

Heads of Development Division Members of Finance Department

Mr Bridger

Mr Glason

Mr D F Smith Mr L V Martin

RESTRICTED