§ 1. Mr. G. M. Thomsonasked the Secretary of State for Commonwealth Relations if he will make a statement on his consultations with the Prime Minister of India concerning economic assistance for India's development plans.
§ 3. Mr. Tilneyasked the Secretary of State for Commonwealth Relations what money has been given or lent to the Government of India from the United Kingdom during the last two years; and whether loans or gifts are contemplated.
§ 4. Mr. Healeyasked the Secretary of State for Commonwealth Relations if he will make a statement on his talks with the Finance Minister of India.
§ The Secretary of State for Commonwealth Relations (Mr. Duncan Sandys)My recent visit to Delhi and the subsequent visit of the Indian Finance Minister to London provided a useful opportunity to review Britain's economic assistance to India's development plans and to discuss the safeguards to be sought for Indian trade in our negotiations for entry into the European Common Market. Since July, 1960, we have signed loan agreements with the Government of India totalling £92 million, and a further loan of £13 million is under negotiation. In addition we have provided technical assistance costing about £¾ million.
§ Mr. ThomsonCan the Secretary of State give an assurance to the House that Her Majesty's Government will take the initiative in getting the consortium discussing aid proposals to India together very quickly, and will he consider giving the most generous possible aid for the current five-year plan?
§ Mr. SandysArrangements for aid to India, as the hon. Gentleman has indicated, are normally conducted through the consortium. It had a meeting in May. A further meeting is due shortly, but the date has not yet been fixed. I am sure that the House will not expect me to anticipate now in public the line we shall take at the next meeting.
§ Mr. TilneyI recognise the extreme poverty of India and the great financial difficulties of that member of the Commonwealth, but does not my right hon. Friend agree that £92 million is a very large sum of money considering that the supply of capital is limited? Is he not a little surprised that the representatives of India in the United Nations and elsewhere have taken up an attitude hardly friendly to the policies of the United Kingdom? Will he take this into account in considering further grants to India?
§ Mr. SandysIt is not our practice to attach political conditions to aid. On the other hand, it is obvious that the attitude of other countries towards us is inevitably bound to affect to some extent our enthusiasm to strain our resources to help them.
§ Mr. HealeyIs the right hon. Gentleman aware that we on this side regard the success of India's five-year-plan as vital to the future of the Commonwealth and the survival of democracy in Asia—and possibly to the maintenance of peace in the Far East? Given that fact, does he really feel that £92 million is an adequate contribution by Her Majesty's Government, bearing in mind the fact that the United States Government, which have far smaller direct political commitments in India than we have, are giving four times as much? Will not he use his influence with the Chancellor of the Exchequer to try to increase the British contribution or, at least, to accelerate its payment?
On the question of the Common Market, can the Secretary of State say whether the Indian Government now agree that Her Majesty's Government's proposals to the Six would, if accepted, meet India's needs for comparable outlets; and can he assure the House that Her Majesty's Government will make no binding commitments to end India's existing advantages in the British market under Commonwealth preference with- 668 out getting equally binding commitments from the Six for the provision of comparable outlets for India when these Imperial preferential arrangements come to an end?
§ Mr. SandysThat is rather a comprehensive supplementary question. I fully share the hon. Gentleman's view about the importance of the progress of India's economy and the progress of the political institutions in India as a very important element of stability for the whole free world.
I really do not think it fair of the hon. Member to suggest that the contribution we have already made—£92 million, with the further loan of £13 million now under negotiation—is inadequate, having regard to our resources and the many other demands put upon us. Nor do I think it reasonable to compare our contribution with that of the United States, whose resources are much greater and who attach just as much importance to the stability of India as we do.
As to the Common Market, no commitment will, of course, be entered into before the meeting of the Commonwealth Prime Ministers in September, when the whole matter will be discussed.
§ Mr. HealeyBut can the right hon. Gentleman answer my first question about the Common Market, namely, are the Indian Government now satisfied, as they were not before, that Her Majesty's Government's proposals to the Six would, if accepted, meet India's legitimate needs in an enlarged Common Market?
§ Mr. SandysI do not know of any Commonwealth Government who are satisfied—[HON. MEMBERS: "Hear, hear."]—with the proposals that are now under discussion, but I think that that is what one would expect at this stage of the negotiations. We are in the very closest touch with the Indian Government, and we have explained to them— and I think that this is the main difference between us—that these negotiations are not an occasion on which we can reasonably ask for an improvement in their present position. What we can ask, and are seeking to obtain, is a safeguard of the trade that they at present enjoy and are at present carrying on with Britain and with Europe.
§ Mr. TilneyWhile I do not object to some of the views expressed by the hon. Member for Leeds, East (Mr. Healey), may I ask whether my right hon. Friend, having regard to the extreme limitation of capital in Great Britain today, will bear in mind the demands of our friends as well?
§ Mr. SandysI am not prepared to say that India is not one of our friends.