Thursday, 2 December 1999

From "Aid or Development?"

By Willem Gustaaf Zeylstra, p. 48.

[...] when decolonization began to be implemented [...] it was anticipated that the African states to be formed would remain committed to British assistance, including that of a financial nature. The new approach was formally announced in 1958 during the Commonwealth Trade and Ecoromic Conference in Montreal [...] The solution chosen was to make funds available existing Export Credits Guarantee Department legislation. It was a compromise, proving that the old prejudice against assisting independent countries has not yet been fully overcome. The so-called Commonwealth Assistance Loans (CALs) implied "hard" conditions, that is to say the money was tied to British procurement and interest was chaged at commercial rates [...] Although further decolonization in Africa had provided the reason for taking this step, it is significant that the first CALs were earmarked for India.

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