The Official History of Colonial Development: Volume 3 A Reassessment of British Aid Policy, 1951–1965

350 Pages·1980·35.431 MB·English

by  D. J. Morgan (auth.)

The Official History of Colonial Development
VOLUME 3
A REASSESSMENT OF BRITISH AID POLICY,
1951-1965
The author has been given full access to
official documents. He alone is
responsible for the statements made
and the views expressed.
The Official History of Colonial
Development
VOLUME 3
A REASSESSMENT OF BRITISH
AID POLICY, 1951-1965
J.
D. Morgan
© Crown copyright 1980. Published by permission of the
Controller of Her Majesty's Stationery Office.
Softcover reprint of the hardcover 1st edition 1980 978-0-333-26232-o
All rights reserved. No part of this publication may be
reproduced or transmitted, in any form or by any means,
without permission
First published Ig/Jo by
THE MACMILLAN PRESS LTD
London and Basingstoke
Associated companies in Delhi
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Melbourne New York Singapore Tokyo
British Library Cataloguing in Publication Data
Morgan, David john
The official history of colonial development
Vol. 3: A reassessment of British aid policy,
IgSI-Ig6s
1. Great Britain-Colonies-Economic policy
2. Economic assistance, British
I. Title II. Reassessment of British aid
policy, 1951-1965
338.gi'I7I'24104I HC259
ISBN 978-1-349-04578-5 ISBN 978-1-349-04576-1 (eBook)
DOI 10.1007/978-1-349-04576-1
This book is sold subject
to the standard conditions
rif the Net Book Agreement
Contents
List of T abies Ix
Priface XI
List of Abbreviations XIV
iV!ap: The Commonwealth, 1g6o xvi
I THE ECONOMIC BACKGROUND, I95I-1963 v
1. The Over-commitment of Resources v
u. The European Free Trade Area 9
m. The Suez Crisis, I956 I 2
iv. Commonwealth Economic Development, I957 I3
v. The United Kingdom and the European Economic
Community I 7
Sources I9
2 COLONIAL DEVELOPMENT AND WELFARE,
I95I-I96I 2I
i. The Background 2I
n. Conference on the Technique of Development
Finance, I95I 23
m. Towards a New CD & W Act 26
IV. Meeting of Commonwealth Finance Ministers,
Australia, 8-I5 January I954 34
v. Assessment of Needs and Provision of Additional CD
& W Funds: Part I 36
VI. Colonial Borrowing and Exchequer Lending 37
vu. Assessment of Needs and Provision of Additional CD
& W Funds: Part II 49
vm. The Review of Development Plans 6I
ix. The Views of the Working Party 63
x. Joint Treasury-Colonial Office Consideration of the
CD & W Schemes 64
v
VI CONTENTS
xi. The CD & W Act, I 959
xii. Allocation of the CD & W Funds, I959
xm. Focus on Africa, I 952-I 96 I
(a) The Background, I952-I958
(b) Policy-making, I959-I96I
Sources 9I
3 THE MODIFICATION OF TREASURY CONTROL,
I95I-1965 IOO
i. Previous Discussions, I947-I95I 100
ii. Visit of Officials to the West Indies, I 95 I I o I
iii. New Procedure Inaugurated, I952 I06
iv. Scrutiny by the Public Accounts Committee, I956
and I958 I07
v. The West Indies, I959--I965 I09
vi. Assistance for Colonial Sugar I I 7
vii. Assistance for the West Indian Banana and Citrus
Industries I 28
viii. Bulk Purchase and Colonial Development I40
Sources I53
4 COLONIAL STERLING BALANCES, I95I-I96I I57
i. The Anatomy of the Balances I 57
ii. Working Party on Colonial Sterling Assets, I953 I6o
iii. Study by the Treasury of Colonial Sterling Assets,
I954 I66
iv. Public Views I69
v. Sterling Balances and the Role of the United
Kingdom I70
vi. Working Party on Colonial Stock Issues, I 958 I 75
vii. Conference in East Africa, March I957 I8I
Sources I82
5 COLONIAL LOANS POLICY, I956-I964 I86
i. The Needs of the Colonies for External Loan
Finance I86
ii. The Availability of Loan Finance I87
iii. Exchequer Loans I9I
iv. Short-term borrowing I 96
v. Extension of the Range of Trustee Investment I 97
vi. The Issue of Exchequer Loans 202
Sources 207
CONTENTS VU
6 THE TRANSITION FROM COLONIAL TO
OVERSEAS DEVELOPMENT 211
i. The Level of Overseas Aid, 195 7-1960 21 1
ii. The Question of Tying Aid to the Colonies 212
iii. The Level of Aid and the Colonial Share 2 13
iv. The Working Party on the Aid Programme, 1961 218
v. Pressures to Increase Aid 223
Sources 232
7 TECHNICAL ASSISTANCE AND THE
ESTABLISHMENT OF THE DEPARTMENT OF
TECHNICAL CO-OPERATION 236
i. A 'Technical Assistance' Allocation 236
ii. Her Majesty's Oversea Civil Service 241
iii. The Establishment of a Department of Technical
Co-operation 253
Sources 266
8 THE COMMONWEALTH DEVELOPMENT ACT, 1963 271
1. Preliminary Discussions 2 7 1
u. Need for a New Act 275
m. Ministerial Decision on a New Act 279
iv. Provision under the New Act 281
v. The Commonwealth Development Bill 288
vi. The Tying of CD & W Assistance 292
vii. The Allocation of the CD & W Assistance 292
viii. The Circular Despatch of November 1963 296
ix. Supplementary Allocation from the Reserve 298
x. Colonies not receiving allocations 303
Sources 305
9 THE OVERSEAS DEVELOPMENT AND SERVICE
ACT, 1965 309
i. Preliminary Discussions 309
ii. Draft Legislation 31 1
iii. Financial Aspects 312
Sources 318
Appendix 319
Index 323
List of Tables
2.I CD & W, I946-I952: Issues and Financial Provision 2I
2 .2 Colonial Loans issued on the London Market, I 946-
I955 47
2.3 Net Annual Unofficial UK Investment in Colonial
Stocks, I95I-I955 49
2.4 CD & W Working Party Estimates of Programme Costs
and Financial Resources Available, I956-Ig6I 54
2.5 CD & W: Estimated Additional Requirements, I955-
Ig6o 59
2.6 CD & W Grants and Exchequer Loans: Estimated
Requirements, I958-Ig64 70
3. I Allocation of Colonial Sugar Preference Quota, I 934 I I g
3.2 World Price of Sugar and CSA Negotiated Price, I95o-
I954 I20
3·3 Sugar Price Differentials, I95I-I957 I24
3·4 Total and Per Unit Excess Revenue of Commonwealth
Exporters from Negotiated Price Quota Sugar Sales to
the UK, I957-I959 I25
3·5 Total Benefit of Commonwealth Territories from Tariff
Preferences on Sugar, I957-I959 I26
3.6 Aid by the Colonial Office to the 'Little Eight' West
Indian Territories, I945-Ig66 I48
3·7 Aid to other West Indian Territories and Regional
Organisations, I945-Ig66 I49
3.8 Aid to the remaining Caribbean Territories, I945-Ig66 I5I
3·9 Totals of Aid to all West Indian and Caribbean
Territories and Regional Organisations, I945-Ig66
(summary of Tables 3.6-8) I 52
4·I Distribution of Colonial Sterling Balances by Main
Holding Areas and Classes ofFunds, 3I December I95I I 58
4.2 The Relationship between 'Disposable' Sterling
Balances and Approved Forecasts of Expenditure in
West and East Africa and the Far East, I95I-I953 I58
4·3 Colonial Sterling Balances (excluding Balances held by
ix
X LIST OF TABLES
Marketing Boards): Percentage Distribution by Use,
31 December 1951 159
4-4 Colonial Sterling Balances, December 1952 160
4·5 Total of Sterling Assets and of Funds managed by the
Crown Agents, 1950-1957 I76
4.6 Total of the Funds managed by the Crown Agents
invested in Stocks, I947-I957 I 76
4·7 Analysis of Crown Agents' Funds, 28 February I958 I 77
4.8 The Crown Agents: Total New Money for Investment
and Net Purchases of Existing Colonial Stock, I947-
I957 I78
4·9 The Crown Agents: New Money Available for
Investment, I 94 7-I 95 7 I 79
5. I Loans Approved under Section 2 of the Colonial De-
velopment and Welfare Act, I959, I959-I970 205
6. I Distribution ofA id between Departments ofState, I 96 I-
I964 224
8.I Estimated Requirements, I963-I966 282
8.2 Comparable Requirements met under CD & W Act,
I959 282
8.3 CD & W Requirements, I963-I966 289
8.4 Allocation of Funds Available under the
Commonwealth Development Act, I 963 299
9-I Grants and Loans: Estimated Requirements, I965-I970 3I4
9.2 CD & W Disbursements (excluding Higher Education),
I959-I965 3I5
9·3 Grant and Loan Funds Available, I965-I970 3I6
9·4 Territorial Allocations under the Overseas Development
and Service Act, I 965 3 I 7