PS/Lady Chalker
CONFIDENTIAL
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ODA Survey Settlement and Sub-Programmes
The Secretary of State was grateful for Suma Chakrabarti's submission of 16 November. He is content for Lady Chalker to take the final decision over allocation of available resources between the three ODA sub-programmes, and believes that she (rather than he) should write to the Chief Secretary. He has asked, however, that she reflect on the following before doing so.
If the second option is to be preferred, the Secretary of State wonders whether it is strictly necessary to set aside now £8/16/24m for the Global Environment Assistance Sub-Programme, which amounts to a tripling of the funds available over three years. He thinks that, against the background of a substantial fall in the aid budget between years 2 and year 3. this may invite unnecessary criticism of the Government's aid policy. He wonders, therefore, whether it might not be better to allocate the funds as follows:
T
Aid Budget
Global Environment
£m
1994/95
1995/96
1996/97
2182 (+5) 2230 (-2)
8
16 (+8)
2230 (-2) 10 (+2)
This would at least have the advantage that the cash level of the Aid Budget would remain constant in years 2 and 3, and might as a result be more defensible. The GEF negotiations on the other hand have not yet concluded, so our exposure remains uncertain. We would be able to argue that the extra £8m in year 2 was new and additional money for the GEF. We would seek to redress the fall in year 3 in next year's PES round.
The Secretary of State is content that we suggest to the Treasury that the Superannuation saving of £5m in 1996/97 should be retained in the Overseas Superannuation Sub-Programme and be specifically earmarked for the Hong Kong HMOCS package. However, he is not optimistic of a positive Treasury response.
19 November 1993
Steam smith
(J S Smith)
CONFIDENTIAL
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