Colombo Plan Aid Doubled

Press, Volume CIX, Issue 32010, 10 June 1969, Page 1

Colombo Plan Aid Doubled

(New Zealand Press Association) WELLINGTON, June 9. The Government has decided to double the Colombo Plan appropriation from s2m to s4m this financial year.

Announcing this tonight, the Prime Minister (Mr Holyoake) said the Colombo Plan was New Zealand’s oldest, best-known and most popular aid programme; and expenditure had been consistently in excess of the Colombo Plan appropriation for some years. There was now insufficient margin to provide for all the aid projects in South and South-East Asia. “The Government recognises the importance of aid in this area and the increased appropriation will greatly assist in raising the total level of the Government’s aid performance,” said Mr Holyoake. “The Government has already accepted the target of 1 per cent Gross National Product for external aid. It has supported previous resolutions of the United Nations conference on trade and development relating to the 1 per cent formula.” It had also voted for the resolution adopted by the General Assembly of the United Nations on December 17, 1968, which recommended this target, he said. “There is, of course, a special qualification in this ’’isolation to cover the position of countries like New Zea-

, land which are net importers of capital,” said Mr Holyoake. “New Zealand’s acceptance took this into account The Government will move steadily towards the 1 per cent target. “The increase in the Colombo Plan appropriation is a practical illustration of the Government’s good faith in this matter,” he said. Even before this doubling of Colombo Plan aid, assistance under the scheme was the largest item in New Zealand Government aid expenditure. According to figures in the latest New Zealand Year Book, total New Zealand Government grants for development totalled $7,644,000 in 1967. This was made up of $6,176,000 in bilateral aid and $1,468,000 in multilateral aid. Bilateral aid is assistance . given from one government direct to another and in- , eludes -id under the Colombo ; Plan scheme. Multilateral aid, when as- . sistance is given through an . intermediary organisation, includes New Zealand’s contributions to the many United Nations organisations. In addition to this develop- , ment grant aid, New Zealand : gave in the year ended March 3L 1967, $lBO,OOO for emergency refugee and relief , assistance, and $860,000 in . Government loan assistance and subscription to the Asian , Development Bank. This aid and loan assistance, totalling $8,684,000 for 1967, does not take into account substantial private aid in cash and kind given through such organisations as C.0R.5.0. and the Red Cross.