§ Mr. Juddasked the Minister of Overseas Development whether he will now announce the scope of the effects on the aid programme of the economic measures of July, 1966.
§ Mr. BottomleyThe economic measures of July, 1966 included programmes for the restriction of Government overseas expenditure. As part of these, disbursements under the aid programme are to be limited to £205 million in 1967–68 as compared with a target of £225 million in 1966–67. This will be achieved partly by cutting and partly by the slowing down of disbursements. The reductions will fall mainly on bilateral financial aid which is the largest element in the aid programme. Reductions to individual items are being applied in the course of normal negotiations and consultations with the recipient countries, and this process will continue during the coming months. The Government regret that this degree of restraint was necessary in the interest of economic recovery and to maintain the strength of the pound. Our ability to 33W give aid depends on this. Despite the setback, the flow of resources from the United Kingdom to developing countries and the proportion of it represented by official economic aid will still compare well as proportions of national income with those of most other donor countries.