HC Deb 26 June 1962 vol 661 cc936-7
18. Mr. Mathew

asked the Chancellor of the Exchequer if his attention has been drawn to Recommendation 317 (1962) of the Consultative Assembly of the Council of Europe on the protection of private foreign investments in developing countries; if he will give an assurance that Her Majesty's Government will give full support to the international efforts being made to draw up a multilateral investment convention to provide such protection to investors; and if he will examine the possibility of instituting an international guarantee fund against non-commercial risks.

Sir E. Boyle

I have seen the recommendation to which my hon. Friend refers and can assure him that Her Majesty's Government will continue to support the attempt in the O.E.C.D. to draft an international convention for the protection of foreign property. The question of an international guarantee fund against non-commercial risks is at present under consideration in the Development Assistance Committee of the O.E.C.D. and Her Majesty's Government is, of course, taking part in this consideration.

Mr. Mathew

I am grateful to my hon. Friend for that reply. Should either of these two international initiatives prove abortive, would he, together with the Chancellor of the Exchequer, support a purely Commonwealth initiative to give protection to private investors in Commonwealth developing countries against purely non-commercial risks?

Sir E. Boyle

I would rather not go further than I have this afternoon. We have every reason to hope that agreement will shortly he reached on the text of a draft convention. But, in the event of what my hon. Friend says, of course we will consider that and any other reasonable proposal.

Mr. Brockway

Is the hon. Gentleman aware that this consideration is also covering the unequal distribution of investment, resulting in the fact that where there are profitable minerals investments are heavy, while other countries which need them most are being starved of investments?

Sir E. Boyle

That supplementary question takes us rather wider than the Question on the Order Paper, but I should be glad to make any inquiries I could to help the hon. Gentleman with the information which he seeks.