TNAG-1911-FCO40-2715-Financial-assistance-from-the-UK-Government-to-Vietnamese-re-1989 — Page 157

CONFIDENTIAL

Poland

5. It has also been agreed within the FCO that technical assistance to be provided to Poland should be voted by ODA. Other (political) assistance will be voted by the Diplomatic Wing. At the moment, provision has been made for up to £1.3 million of payments to be made by the Diplomatic Wing. A CF advance has been taken in anticipation of provision of this amount being voted in a Winter Supplementary Estimate. Further expenditure of up to a total for 1989-90 of £3 million is expected to be incurred by a joint DW/ODA unit which will be responsible for assistance to Poland covering both aspects.

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6. At the moment the expenditure being met from the CF advance by the diplomatic wing includes both political and aid elements. Finance Department, FCO are content with this. We would however prefer as far as possible to regularise the position so that all

aid ̋ expenditure to be incurred in 1989-90 is carried on ODA votes (I accept that this would involve some action to regularise payments already made which we propose to discuss with FCO Finance Department). I would be grateful for your view on this point. You may wish to discuss this with your colleagues dealing with diplomatic wing expenditure. In the meantime I would be grateful to know from EED how much of the expenditure contracted to date from the £1.3 million could be considered to be proper to ODA administration and funding.

7.

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As to recording of this expenditure, it has been agreed that the resources will be scored against a separate PES sub-programme. Subject to your agreement, I will ask data unit to set this up. suggest it could be coded 020206. We also have to decide whether this should also be shown on a separate line in the 1990 PEWP tables. We believe it should and I have written to Mark Handford with the necessary details.

8. Ideally we would also prefer to see these resources carried on a separate vote. I would be grateful if you would consider this. If this is not posssible, we would insert a new section (Section E) in the draft Winter Supplementary Estimate to deal with this expenditure. Some amendment to the ambit would also be needed. amount to be voted will depend on the resolution of the issue raised above (para 6).

The

9. I attach a table showing how the amount of the supplementary estimate and claim on the Reserve is calculated and which will form the basis of the PQ announcing a cash limit increase. This also

CONFIDENTIAL