I attach for your approval a memorandum of instructions to the Canadian Delegation to the forthcoming meeting of the Colombo Plan Consultative Committee. The purpose of the memorandum is to summarize in convenient form the more detailed conclusions set out in a series of commentary articles.⁸⁶

The instructions cover not only subjects included in the formal agenda for the meeting but also a number of issues that may be raised either in the context of the meeting or in informal discussions with other delegations.

Many of these issues are less substantial than they are sensitive, stemming as they do from the nature of the Colombo Plan as an association between donor and recipient countries from different areas (i.e. the admission of potential new members, the appointment of a Director of the Colombo Plan Bureau, and the venue of the next Consultative Committee meeting). The only issue affecting Canada's programme directly arises from the decisions taken by Ministers last month concerning the nature of our aid to non-Commonwealth members of the Colombo Plan.⁸⁷ This is the subject of a separate commentary article, a copy of which is also attached.

D.V. LEP[AN]
for Under-Secretary of State
for External Affairs

[PIÈCE JOINTE/ENCLOSURE]

Note des instructions à la délégation à la réunion du Comité consultatif du Plan de Colombo à Seattle, 1958

Memorandum of Instructions to Delegation to the Colombo Plan Consultative Committee Meeting, Seattle, 1958

CONFIDENTIAL

General Guidance

The Canadian Delegation to the Colombo Plan Conference should be guided by two general considerations:

1. The Colombo Plan is a co-operative effort to improve the well-being of South and South-east Asia. The main effort is being put forward by the countries of that region themselves. It is not desirable, therefore, for the countries outside the region who contribute to this co-operative economic effort to describe themselves as donor countries and to speak of others as recipients. It also follows that any initiatives put forward in the Colombo Plan context should have broad backing from the major Asian delegations.

2. It would be undesirable to make any reference to the fact that one of the reasons for Canada participating in the Colombo Plan is our wish to help counter the threat of Communist subversion. A number of important members of the Plan, such as India and Indonesia, are avowedly neutral in this struggle, and it has, therefore, become an almost unwritten rule at meetings of the Consultative Committee that no reference is made to this issue. Moreover, the extent to which rising standards of living consequent upon economic development hinder or help Communist efforts in these countries has never been clearly determined.

Item 1 of the Agenda - Speeches by Leaders of Delegations

Depending on the order of business agreed upon by Ministers, it is possible that leaders of delegations will address the Conference twice. The opening speech would normally be the major one; observations on the special theme selected for this year's Conference, Regional Impact of National Development Programmes; Experience and Problems, may either be part of it or may have to be made the subject of a separate speech. Speeches by Ministers representing donor countries invariably incorporate some record of the contributions made by the country concerned over the preceding year, coupled with some reference to the prospects and scope of further contributions to be made in the year to come. This portion of the Minister's speech at Seattle might with advantage be expanded to include some reference to the very important developments that have taken place this year in the general realm of economic assistance to under-developed countries, notably the results of the Montreal Conference, the decisions taken at NewDelhi⁸⁸ and the creation of the new Special Fund by a resolution of the General Assembly of the United Nations.

Thought is being given to developing two themes in the context of the opening speech. One of these would revolve around the mutual benefit which both donor and recipient countries derive from the operation of the Colombo Plan. The second theme would relate to the impact on the South and Southeast Asian region as a whole of national development programmes in the area. This is a matter of interest to several member countries and has been placed on the agenda as a separate item. Other themes may emerge in the course of the preliminary discussions at the official level. Canadian officials attending these meetings should take on the responsibility of preparing final drafts for one or two speeches, as the case may be.

Item 2 of the Agenda - Presentation of the Draft of the Annual

The Canadian Delegation should seek to ensure that the report is as objective and analytical in tone as possible.

Item 3 of the Agenda - Regional Impact of National Development Programmes; Experience and Problems

This is a theme which might be developed in the Canadian speech to the Conference. The fact is that resources available for economic development are limited and this suggests the desirability of using such resources as are available to maximum advantage. So far many countries in South and Southeast Asia have evolved development programmes largely in the context of their own national economies. There may be a case, therefore, for having a look at the development of the region as a whole to see whether there are instances where closer co-operation between countries in their national planning would serve the interests of some overall economy in the commitment of resources for economic development. Indeed, some aspects of this problem are already under consideration in ECAFE.

Item 4 of the Agenda - Technical Assistance; Report of the Sub-Committee on Technical Assistance

As far as Canada is concerned, the Technical Co-operation scheme is operating reasonably well, principles and procedures are basically satisfactory and generally understood, and no major changes are contemplated. We are, of course, prepared to accommodate, as far as possible, minor procedural changes generally agreed by other participants in the Technical Assistance Programme.

It seems likely that funds will be available over the next year or two to finance our Technical Co-operation Programme on the current scale, and probably to provide for some modest expansion. While avoiding commitments, the Delegation can, therefore, feel reasonably free in encouraging representatives of other countries to put forward sound, practicable requests for technical assistance from Canada.

Item 5 of the Agenda - Colombo Plan Information Unit; Report of the Sub-Committee on Information

We are satisfied with the work of the Colombo Plan Information Unit as reflected in its 1957-58 report. We are also prepared to endorse the conclusions and recommendations agreed upon at the Conference of Information Officers which was held in Singapore from September 9-12 to review Colombo Plan publicity. These recommendations are set out in the attached report of the Conference and will be presented to the Seattle Consultative Committee meeting for approval.

Item 6 of the Agenda - Arrangements Relating to the Next Meeting

Malaya has indicated its intention of issuing an invitation to hold the 1959 Colombo Plan Conference in Kuala Lumpur. It seems likely that Indonesia also will make a bid for the Conference. There are substantial reasons for supporting both Indonesia and Malaya and either country would appear to be suitable. The Delegation should not take the initiative in discussions on this matter (particularly as the 1959 host probably will be a recipient country) and in the final analysis, the Canadian Delegation should fall in line with the wishes of the majority of the Asian nations.

Item 7 of the Agenda - Other Business

There may be a number of topics raised at the meetings or brought up informally between delegations. A list of such possible topics is set out below, with brief indications as to what attitude the Canadian Delegation should adopt:

1. Canadian Capital Aid Programmes for 1958-59. The 1958-59 capital aid programmes have not as yet been agreed upon. Two memoranda, dealing with Commonwealth and non-Commonwealth countries respectively, are included in this briefing; they describe the progress which has been made to date in working out programmes for each country, and suggest the line which should be adopted by the Delegation in informal conversations at Seattle.

2. Scholarship Programme in India, Pakistan and Ceylon. In the light of developments that have taken place at the Commonwealth Trade and Economic Conference, it would seem desirable to delay taking any further action on the scheme which Canada had earlier proposed to India, Pakistan and Ceylon until such time as the broader Commonwealth programme has been established. Although it is perhaps too early to say definitely, there appears to be no reason why it should not incorporate some of the features we had envisaged in the more limited scheme for India, Pakistan and Ceylon. These views may be used in any discussions you may have with members of other delegations.

3. Asian Nuclear Centre. The United States have informed us that their Delegation does not intend to raise this matter at the Seattle meeting. Notes have been prepared and are attached for your information.

4. Asian Development Fund. Japan proposed last year the establishment of a $700million Southeast Asian development fund] intended to harness substantial amounts of United States, and possibly Canadian, foreign aid to a Japanese programme for assisting Southeast Asian countries. In order to keep the idea alive, a modified plan may be proposed by Japan this year. These Japanese proposals are clearly not the type of proposals which Canada could support and, in response to any inquiries, the Delegation should hold out no hope of Canadian participation.

5. Mekong River Project. If your views are sought on possible Canadian participation in the Mekong survey, you should indicate that we expect to receive shortly the final report of the Canadian expert who visited the Mekong Basin during the summer and that his report will be given careful consideration. You should be careful to avoid giving the impression that Canada is committed to participate in any phase of this project.

6. Colombo Plan Bureau Director. This question is likely to come up for discussion during the Conference, although elections for the new Director will be held by the Council only at the beginning of 1959. In informal discussions, you should oppose the nomination of a Japanese Director, for the reasons given in the attached memorandum, unless there is a fairly strong move on the part of the Asian delegations for such an election. If the Asians were to argue that the Directorship should be open to nominations on the basis of merit, regardless of recipient or donor status, we should accept a suitable candidate put forward by them.

7. Possible New Western European Members. If the question of the accession of Germany, France, the Netherlands or Italy to the Colombo Plan were to be discussed at Seattle, the Delegation should point out that enlargement of the Colombo Plan membership by accession of members outside the area has traditionally been regarded as a matter for the Asian members themselves to decide. Would-be members might discuss the subject first directly with the Asians. We would welcome the accession of any of these countries to the Plan if they secured the unanimous support of the Asian members, and if their membership held out the prospect of additional resources becoming available for economic development in the area. We would not consider it appropriate for us, however, to take the initiative in proposing new members nor to solicit support for them from the Asians.

8. In the event that the Soviet Union were to apply for membership in the Colombo Plan or seek any other form of association with the Plan, the Delegation should sound out the views of other member countries at Seattle (in particular the views of delegations representing the Asian countries) and seek further instructions from Ottawa.

9. Possible Membership of Afghanistan. On balance, we would welcome the entry of Afghanistan into the Colombo Plan. Because of our traditional attitude concerning the accession of new Asian members and because of the limit to a potential contribution by Canada to Afghanistan under the Colombo Plan, the Delegation should, however, refrain from playing a leading part in discussions of this matter.

10. Possible Membership of Korea. If the question of Korean membership should arise, the attitude of the Canadian Delegation should be one of reserve. Its official attitude should be that it will be happy to accept the decision of the Asian recipient participants in the Plan. If its informal opinions are sought by other member countries, however, the Delegation might point out some of the drawbacks outlined in the attached brief, while making it plain that it is lobbying neither for nor against Korean participation.

⁸⁶ Note marginale:/Marginal note: approved S.E. Smith

⁸⁷ Voir/See Document 413.

⁸⁸ Le Fonds monétaire international a tenu sa réunion annuelle à NewDelhi en 1958, et les nations membres ont résolu d'accroître leurs contributions au Fonds. Voir le document 175.
The International Monetary Fund held its annual meeting in NewDelhi in 1958 and member nations resolved to increase their contributions to the Fund. See Document 175.