TNAG-1313-FCO40-1688-Future-of-Hong-Kong-views-and-involvement-of-Australia--Cana-1984 — Page 95

CONFIDENTIAL

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the absorptive capacity in many countries.

Moreover there is no

evidence to suggest that other donors particularly those who chose not to participate in IDA supplementary financing arrangements are prepared to subscribe to a Fund for Africa. We wish to maintain

burden sharing.

6. Lomé III. EDF VI has maintained Lomé II in real terms. A

figure of 7.5bn ECU (£4.3bn) has been put forward which is now being considered by all members of the Community as a result of the

negotiations this week.

7. As to quality of aid, Mr Pisani has been pressing the concept of a 'policy dialogue' which would mean a closer control on how the funds are spent on development projects. We support this along with

this emphasis on the quality of aid. We consider trade concessions to be as valuable as aid and here the French have traditionally been

obstructive.

9. As part of the UK Aid programme we have responded in several

ways. Overall we gave £236m in 1983 in bilateral aid to 47

countries in Africa. This was one third of all UK bilateral aid.

We have also given £60m so far this year in disaster relief for

Africa.

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