TNAG-0694-FCO40-844-Inspection-of-Hong-Kong-Department-1977 — Page 146

system results in there being desks in both C&GD and SED

#handling Gibraltar matters. This involves duplicatio of

papers and effort and a good deal of consultation between

two Heads of Department and two Under Secretaries'.

discussed the proposed move with Sir D Tebbit and the Home

Inspector in February. At that time the transfer of Gibraltar to SED was linked with the split of the latter into

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a South East European Department and South West European

Department in order to avoid overloading. SED:

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Further

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thought showed that such a split would produce two tiny

Departments without a viable workload and the balance of

fadvantage is now recognised as lying with Mr Morgan's orig proposal. We shall however in consequence have to watch

closely that SED is not as a result ready

to take remedial action if it is: at present continuing

and increasing difficulty is foreseeable in Gibraltar's

internal and external affairs..

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Overloaded, and be

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The administration of aid however presents a problem

Our aid (£2.5 million per annum) represents an integral part of our commitment to support the Gibraltarians against

the Spanish restrictions and in that sense it is unlike a

[more

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'normal' aid programme, although it is used to support

developments which we and the ODM regard as being in the

social and economic interests. of the local populace and has

be used in a cost effective manner'

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Because of the political context, respinsibility for the

administration of aid should ideally go with the rest of the

Section to SED, and this was the Inspector's original

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recommendation. However, ODM could mot agree to SED taking on

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he aid job as they are only willing to delegate such

"

VETERA