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To study transfers between oil-consuming developed countries and oil-producing developing countries, we use a dynamic decentralized general-equilibrium model (GEM) with two countries: a rich, altruistic, and resource-poor country (North)and a poor, resource-rich country (South), where resource-owners live alongside impoverished workers. On the one hand,North’s taxation of resource use extracts a portion of South’s mining rents in a distorting manner. On the other hand, North distributes foreign aid to improve the situation of South’s poor. The coexistence of these transfers in opposite directions illustrates the interference between North’s tax and international-aid policies. We analyze the interference and suggest a contractual solution based on coordination between the two sets of policies.