HC Deb 02 February 1953 vol 510 cc1469-70
43. Mr. Fenner Brockway

asked the Secretary of State for Foreign Affairs on what ground the British delegates at the United Nations General Assembly voted on 21st December with the delegations of the United States of America, New Zealand and South Africa against the delegations of 36 Governments on a resolution affirming the right of Governmental exploitation of natural resources, providing that the flow of capital to underdeveloped countries should continue in conditions of security.

Mr. Selwyn Lloyd

The United Kingdom delegation voted against this resolution because it was calculated to deter the investment of foreign capital in underdeveloped countries, and to hinder rather than help their economic development.

Mr. Brockway

Is not this a repudiation of policies which have been followed by Governments representing both sides of the House, as illustrated, for example, in the Gezira Scheme in the Sudan and in all of the activities of the Colonial Development Corporation?

Mr. Lloyd

No, Sir. If the hon. Gentleman would read the speeches which were made on behalf of the United Kingdom Delegation when the vote was explained he will see that this decision did not affect the policy with which we are in agreement. The point about this resolution was that it was a thoroughly unsatisfactory resolution because it referred only to the rights of the countries which received the investment and said nothing at all about there being any rights on the part of the countries which contributed the investment, and that, in our view, was an invitation to the kind of action which has been taking place in certain countries. That is why we did not vote for the resolution.

Mr. Brockway

Is it not the case that the resolution included a provision that the flow of capital to under-developed countries should continue in conditions of security, and did not that cover investment?

Mr. Lloyd

If the hon. Gentleman will read the whole resolution he will see that, in the terms of the last part of it, it would be impossible for any Government even to take lawful action to protect investments of their nationals in another country.