President George W. Bush’s administration is drawing up plans to carry out the biggest overhaul of the US foreign aid apparatus in more than 40 years in an attempt to assert more political control over international assistance, according to officials and aid experts.

The proposed reorganisation could lead to a takeover by the State Department of the independent US Agency for International Development. USAID was established by President John F. Kennedy in 1961, managing aid programmes, disaster relief and post-war reconstruction totalling billions of dollars each year.