HC Deb 06 July 1961 vol 643 c1635
10. Mr. F. M. Bennett

asked the Secretary of State for Commonwealth Relations how much British financial aid has been afforded or promised to India and Pakistan, respectively, during 1960 and 1961.

Mr. Braine

In 1960, Her Majesty's Government gave loans to India amounting to £15 million. To help finance the current Indian five-year development plan, which began on 1st April this year, Her Majesty's Government have this year signed Loan Agreements totalling £40 million, and they have recently undertaken to make additional loans totalling £50 million during the period ending 31st March, 1963.

When the current Pakistan five-year development plan began on 1st July, 1960, the Pakistan Government had available for its use £10 million under Loan Agreements made by Her Majesty's Government. Since then, Her Majesty's Government have signed Loan Agreements for a further £8 million, and have recently undertaken to make additional loans, totalling £7 million, available during the period ending 30th June, 1962.

Mr. Bennett

While no one would wish for a moment to cut down on the aid that this country can afford to give to India or any other part of the Commonwealth, may I ask my hon. Friend whether he would comment on the fact that there seems to be a discrepancy between the amounts made available to these two countries out of proportion to their respective populations? Will he bear this fact in mind in future when drafting other forms of aid that we are able to make, especially since Pakistan is a very close and loyal ally as well as a member of the Commonwealth?

Mr. Braine

We do not regard the scale of assistance that we are able to give to Pakistan as out of proportion to the aid that we have given to India.

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