CABINET DECISION NO. 21

Canberra, 29 May 1951

CONFIDENTIAL

Submission No. 21—Australian Government’s Contribution to the Colombo Plan¹

Cabinet re-affirmed its intention of devoting £8.75 m. (A) during 1951/52 towards the assistance of the countries of South East Asia. It recorded the opinion that assistance should, as far as possible, be given in the form of goods, plant or livestock rather than money. It set up a committee comprising the Departments of External Affairs, Trade and Customs, Commerce and Agriculture and Treasury to determine to what extent it is possible to provide supplies in kind. It indicated that a further examination should be made in about six months’ time to test whether it was then possible to provide further goods, plant or livestock. To the extent that this was not possible, credits could be provided.

Cabinet directed that care be taken not to raise expectations that goods, etc. could be provided unless it was clear that they were available. It also directed that the £8.75 m. was to be in the form of gifts and not loans.

The allocation of the total sum was to be altered by reducing Ceylon’s amount to £300,000 and by increasing India’s allocation to £4.2 m.

[NAA: A4940, C353]