HC Deb 23 April 1963 vol 676 cc7-8
11. Mr. Darling

asked the President of the Board of Trade what credit facilities he has made available in order to assist a consortium of British firms to obtain the contract for building and equipping an alloy steel plant at Durgapur.

Mr. Green

As the consortium is aware, the usual facilities are available from E.C.G.D. The Indian Government can, of course, if they wish, ask for a special development loan for this project.

Mr. Darling

Would not the hon. Gentleman agree that this is not exactly a case where normal credit facilities would apply or are being asked for, but a special case where special help is needed to main- tain British trade with India? Is it not a fact that the tender from the British consortium is either at just about or is below the level of the Japanese tender, but that the Japanese are offering far better credit facilities? Would not the hon. Gentleman agree that this is a case where, in order to maintain British trade with India, we should reconsider how much we are to invest for that purpose and for the maintenance of employment here?

Mr. Green

The hon. Gentleman has raised very large questions in that supplementary question. Agreements for British loans to India to a value of £98.5 million for the third five-year plan have already been signed. We have had no request from the Indian Government for such an additional loan. If such a request were received it would be considered alongside India's many other requirements for the financing of imports.

Mr. Darling

Has not the British consortium itself asked the British Government for help to measure the assistance being offered by the Japanese firm. What reply has he given?

Mr. Green

The point is that this is an Indian Government venture. We have had no request for a loan for this purpose from them. There is obviously a limit to the amount of trade we can buy with this form of aid. We have had no request from the Indians for this. We should not resent the fact that India, for necessary financial purposes, does seek aid from other sources as well as from us.