[?]eign Aid—But

Letter to the Editor

[?]eign Aid—But Strings Attached

r. —May I draw your at on to the publication of the graph “Netherlands New lea receives foreign aid” in

r , November, 1959, p. 47,

;h can give a wrong im sion?

IE report said that the Nether ands Government in October mnounced it had accepted 35 en dollars aid for Netherlands Guinea from the European omic Community Development I, to be spent on special pro in the economic and social res between 1959 and 1964]. is true that the Netherlands rnment is willing to receive gn aid, to assist her in the de »ment of Netherlands New na, if such an aid has no gs attached. Unicef, Unesco, ) and FAO are agencies that been fruitfully co-operating the Dutch to the advantage of Papuan population, e aid from the European omic Community Development i, however, bears another icter. len France, Western Germany, um, Italy, Luxembourg and Netherlands signed a Treaty on European Economic Community decided that the overseas terri s of those six countries could date with the Community, e Treaty explicitly states that )bject of the association is first foremost the promotion of the emic and social development of ; countries and territories and ler the establishment of close omic relations between them the Community as a whole 131).

Solidarity

ie member states have agreed )pen their markets to these seas territories in the same ner as they have done towards other. In return they will only ve the same commercial regime the territory applies to the ler country (art. 132). Although Six will gradually abolish their fs on imports from these over territories, the latter will only lually lower theirs until they h the level of the tariffs on im s from the mother country.

The Six have furthermore decided to give palpable and concrete evid ence of their solidarity with their overseas territories by agreeing to contribute a collective sum of over 500 million dollars to a specially created Development Fund, man aged by the EEC European Com mission. The responsible national authorities in agreement with the local authorities or with the local representative bodies of the popula tions of the territories involved will present the social and economic projects for which financial aid is requested.

The size and method of distribu tion of this aid is laid down in a special convention which contains the modalities of the Association for

the first five years. At the end of this five-year period a new con vention will have to be negotiated.

It is in accordance with this system that Netherlands New Guinea receives financial assistance.

But on the other hand the Six also assist other overseas territories of their partners.

In fact, Holland contributed about $75 million to the Development Fund from which Netherlands New Guinea now will receive $35 million.

I am, etc.,

D. J. Van Wijnen.

Attache for Press and Cultural Affairs, Royal Netherlands Embassy, Syd ney.