§ Lord Hatch of LusbyMy Lords, I beg leave to ask the Question standing in my name on the Order Paper.
§ The Question was as follows:
§ To ask Her Majesty's Government what criteria they use when determining their aid and trade policy towards Nicaragua.
The Earl of CaithnessMy Lords, our priority is to provide aid to the poorest nations of the world. Nicaragua is by no means the poorest country in Central America which is, in comparison with some areas of the world, a relatively prosperous region. Decisions on trade with Nicaragua are best left to the business community.
§ Lord Hatch of LusbyMy Lords, can the Minister tell the House whether that Answer represents a change of policy by the British Government which in the past at least has been claimed to be to provide aid to Nicaragua? Can he also comment on the document that has now been published from Mr. J. W. Watt, within the Foreign Office, which states:
First, I recommend that we continue to oppose proposals for Nicaragua by finding technical reasons for doing so"?Later it states:There is no need to amend our voting policy towards Nicaragua for the time being. The problem of explaining it in public will, however, persist and we shall need to stick to our present line of claiming that our opposition is based on technical grounds"—to which words were appended in written script:if we can find them!".
The Earl of CaithnessMy Lords, as the House will be aware, our aid programme is continually under review. It is aimed principally at the poorest countries. As I said in my original Answer, Nicaragua does not fall into that category.
With regard to loans for Nicaragua, we are not blocking any of these, and we consider all new multilateral projects on their technical merits and in relation to the recipient country's standing with the international financial institutions.
§ Lord Boyd-CarpenterMy Lords, is not a major consideration in either loans to or trade with Nicaragua to make sure that one gets paid?
The Earl of CaithnessIndeed, my Lords. I am grateful to my noble friend for that question. As I said in my previous reply, such matters depend on the country's standing with the international financial institutions.
§ Lord Cledwyn of PenrhosMy Lords, are there not, nevertheless, disturbing reports of Britain's alleged ambivalence in its treatment of aid in respect of Nicaragua? Is the noble Earl aware of the recent Oxfam publication, The Threat to the Good Example, by Miss Dianna Melrose, which makes plain that Nicaragua appears to be treated differently by the Government—differently, that is, from other Central American countries? Can the noble Earl say whether he has read that and other reports and what is the attitude of the Government towards that serious allegation?
The Earl of CaithnessMy Lords, I have, indeed, read that report and I have a copy of it with me. The Oxfam report has been noted by my right honourable friends in the Foreign Office. As I said earlier—and I cannot add to it—we look at each situation on its merits.
Lord OramMy Lords, can the Minister tell the House the date of the last allocation of aid to Nicaragua? What negotiations have taken place for further aid since that date, and with what result? If the Minister does not have that information available this morning, will he be good enough to write to me with it?
The Earl of CaithnessMy Lords, I cannot give the noble Lord that information at this precise time because I do not have the dates he requires. However, I can tell him that this matter is the subject of continuous negotiation and review. If I am able to be more specific than that, I shall write to the noble Lord.
§ Lord Jenkins of PutneyMy Lords, will the noble Earl indicate the Government's disapproval of American policy—which appears to be directed at the destabilisation of a democratically-elected Government—by stepping up their aid to Nicaragua, thus providing a counter to American policy? The policy of the Americans appears to be to attempt to assist the enemies of the Nicaraguan Government, rather than the contrary.
The Earl of CaithnessMy Lords, with due respect to the noble Lord, that is wide of the Question on the Order Paper.
§ Lord MolloyMy Lords, can the noble Earl say what kind of aid we might have given for which, as the noble Lord, Lord Boyd-Carpenter, said, the Nicaraguans would have had to pay? What kind of aid would we dispense only if it is paid for? There is not much chance of anything being paid for in Nicaragua if the United States installs insurgents, assassins and murderers to kill and slay the opponents of the Nicaraguan Government. In view of press reports today, should not the British Government make a statement deploring American policy?
The Earl of CaithnessMy Lords, the noble Lord, Lord Molloy, mentioned British aid to Nicaragua. That aid currently consists of a small number of scholarships in the United Kingdom, support for small development projects co-financed with British voluntary agencies, and assistance to Nicaraguan 1479 refugees and displaced persons through appeals by the United Nations High Commissioner for Refugees and the International Committee of the Red Cross.
§ Lord Hatch of LusbyMy Lords, can the Minister tell the House whether the British Government are still using their influence to block a loan to Nicaragua from the Inter-American Development Bank? Can he say whether it is correct that Mr. Kevin O'Sullivan wrote to the under-secretary of our Overseas Development Administration in February of this year, stating:
A series of highly questionable actions… including deliberately misleading statements to the Board, the unauthorised removal of items from the agenda of various Management committees, the suppression of information and the disappearance of documents from files… is an open scandal and formal protests have been lodged by, or on behalf of, every member of the Board of Directors except the United States director".
The Earl of CaithnessMy Lords, I said in an earlier reply that we are not blocking any loans. It surprises me that the noble Lord, who is normally so well informed, has not read the Written Answers in another place on 15th May which dealt quite fully with this matter.