HC Deb 05 July 1951 vol 489 cc2500-3
Mr. H. Morrison

With your permission, Mr. Speaker, and with that of the House, I desire to make the following statement.

As the House is aware, British, American and French officials recently made certain recommendations to their respective Governments about a coordinated programme of tripartite short-term economic aid to Yugoslavia. These recommendations have now been approved. Subject to confirmation by the respective legislatures, the three Governments intend to make available substantial grants to Yugoslavia for the purchase of raw materials, consumer goods and other essential supplies.

The three Governments attach the greatest importance to strengthening Yugoslav resistance to pressure from the Cominform States, but they have no intention of attaching any political strings to their aid. At the same time, they will make every effort to ensure that it is put to good use. They expect the Yugoslav Government to take all possible measures to keep the amount of foreign aid to a minimum. I understand from recent statements in the Yugoslav Parliament that the Yugoslav Government are fully alive to the necessity for such measures, and, in particular, for an export drive.

The amount of the United Kingdom share of aid to Yugoslavia for the remainder of the financial year ending 31st March, 1952, cannot at present be accurately estimated. It depends on the success of Yugoslavia in balancing her foreign payments. If estimates provided by the Yugoslays prove well founded, the United Kingdom share may be of the order of £10 million.

It is intended to ask the House early this month to give approval in principle to the grant of short-term economic aid to Yugoslavia by agreeing to a supplementary estimate on the Foreign Office Grants and Services Vote for a token sum of £10. A further estimate will be submitted to Parliament in February, 1952, for the amount which it is estimated will be required during the year ending 31st March, 1952, to meet the United Kingdom share of such sums as may be found necessary.

In the interim, it is proposed to have recourse to the Civil Contingencies Fund to meet any necessary expenditure under this head. The total of such payments will be repaid to the Fund, as soon as the February, 1952, estimate has been approved by Parliament. The advantage of this method will be to ensure that, in the light of current estimates, Yugoslavia's immediate needs are met, but that provision will not be made far in advance for funds for Yugoslavia which, in the event, may prove to be unnecessary.

I understand that the French Government will also shortly approach the Assembly and that the United States Government will ask Congress to sanction funds for Yugoslavia within the scope of the comprehensive Foreign Aid Bill now under consideration.

Mr. Eden

While I think the House would generally approve the principle of what has been announced—and I understood the observations of the right hon. Gentleman about political strings—would it not also be right to say that we do look to the Yugoslav Government, in the light of these closer personal relations, to take steadily more steps to put their treatment of those with whom they do not always agree politically, at any rate, nearer the level of those which the Western Democracies try to practise?

May I also ask why—Supply not having been closed—we could not deal with this this year, and why we should vote it next year? Finally, while I assure the right hon. Gentleman of our support for these proposals, may I ask whether he can give us an undertaking that we shall not be accused of trying to start another war?

Mr. Morrison

On the point about the Estimate, I gather that the difficulty is that we do not know what the sum will be for that period and that is why we cannot very well do it just yet. On the first point, as to developing the institutions of Yugoslava, I do not find myself out of accord with what the right hon. Gentleman has said; indeed, I think there are some encouraging signs.

Mr. Eden

What about the last point?

Mr. Morrison

I am most anxious to be peaceful today.

Mr. Duncan Sandys

Can the right hon. Gentleman say whether this agreement covers in any way the supply of arms to Yugoslavia, or whether a separate agreement is being concluded on that?

Mr. Morrison

I think it is substantially true to say that in the case of arms supplied some will be purchased by Yugoslavia in the ordinary way.

Mr. Sandys

Out of that money, or not?

Mr. Morrison

I am not sure I think so.

Mr. S. O Davies

Is my right hon. Friend aware that it is the boast of Yugoslavia that she has more divisions under arms at this moment than all the rest of the Powers of Western Europe?

Mr. Nigel Davies

Will the right hon. Gentleman say whether he will consider making similar arrangements for financial assistance to Spain, in view of the equal necessity of ensuring the stability and economic well-being of that country?

Mr. Morrison

The answer is in the negative.

Mr. Davies

Why?

Mr. Speaker

This is a matter which deals with Yugoslavia, and not with Spain.

Mr. Emrys Hughes

Will my right hon. Friend explain why, if the Yugoslav Gov ernment is still a Communist Government. the Opposition are giving help and support to a Communist Government?

Mr. Morrison

Why does my hon. Friend go in for these dialectical exercises and try to stir up trouble when all is good will and peace among us?

Mr. Eden

Would the right hon. Gentleman agree that the policy of the Opposition is to support Governments which wish to pursue peace, regardless of their political colour?

Major Tufton Beamish

Is the Minister aware that the right answer is that hon. Members on this side of the House always put country before party?

Mr. Drayson

Can the right hon. Gentleman say whether, in view of the re-armament programme in this country, it is the intention of the Government to give any priority to the delivery of goods to Yugoslavia and also whether technical help is included in this agreement?

Mr. Morrison

I think we have an economic mission in Yugoslavia that is giving all the help it can.