§ 87. Mr. Hurdasked the Secretary of State for Foreign Affairs if agreement has yet been reached on the terms of a loan to Yugoslavia; and if he will state the sum involved and the purposes of mutual benefit to the United Kingdom and Yugoslavia for which this credit will be used.
§ Mr. ProfumoHer Majesty's Government have made a formal offer to the Yugoslav Government of a loan of £3 million. The Yugoslav Government have not yet given their formal reply. The purpose of the loan is to help Yugoslavia to purchase certain capital and semi-capital goods in the United Kingdom, and to further the policy of economic co-operation between the two countries which has existed for the past ten years to the advantage of both. Her Majesty's Government have borne in mind in this context the question of Yugoslavia's prewar debts to this country.