The British Government's unimaginative response to the Brandt Report reflects the official view that no new ideas are needed in the field of overseas development. But the FCO Memorandum correctly points out the central weaknesses of the Report: it is much too timid in addressing the OPEC countries and mistaken in using a simplistic North‐South categorisation. The apparent agreement with the Report on the importance of ‘mutual interests’ conceals a different interpretation of the concept. There are inconsistencies in the Government's policy as it affects access to Northern markets for poor countries' exports; and the Government cannot argue that the North is presently the motor of growth for the world economy. It fails to take the point that the real cost of resource transfers is relatively low in recession.