§ 4. Mr. H. Fraserasked the Chancellor of the Exchequer whether he will give an assurance that, in future, when large sums of money are loaned by Her Majesty's Government, or its agencies, to Commonwealth projects, conditions will be made to ensure that contracts are awarded to British or Commonwealth firms, bearing in mind the grip of the credit squeeze on British enterprise and work in progress.
§ Mr. H. BrookeIt would not be in our wider interests to lay down a condition that all our loans should be available only for United Kingdom goods and services. Specific decisions can be taken only on individual cases, in the light of what is desirable and practicable.
§ Mr. FraserIf my right hon. Friend will take the individual case of the Kariba project, surely he will agree that there are major political considerations which have to be borne in mind? Can he give us an assurance that there will not be a repetition of the bad organisation which led to that fiasco?
§ Mr. BrookeI must deny that there has been any bad organisation. In the Kariba case it would not have been possible to find the funds needed in the United Kingdom as well as finding the finance for other development in the Federation. It was necessary to interest the International Bank, and that Bank lays down the condition that contracts covered by its financing must be open to international tender.
§ Mr. H. HyndIf that condition cannot be applied to loans, could it at least be applied to gifts, such as the pending gift to Egypt?
§ Mr. BrookeThat is a different question.
§ Sir R. JenningsIn view of the unsatisfactory reply to this Question, I beg to give notice that I shall raise it at the earliest opportunity on the Adjournment.