HC Deb 25 April 1963 vol 676 cc404-5
25. Mr. Prentice

asked the Chancellor of the Exchequer whether a decision has yet been reached, in consultation with other members of the consortium of powers providing economic aid to India, on the upward revision of economic aid so as to ensure that the current Five Year Plan is not retarded by increased defence costs arising from the threat from China; and if he will make a statement.

The Economic Secretary to the Treasury (Mr. Edward du Cann)

No, Sir. All these matters will be taken into account by the consortium, which is holding a preliminary meeting in Washington on 30th April and 1st May, in order to consider India's needs for economic aid in 1963–64.

Mr. Prentice

Would the Economic Secretary agree that it is vital, both on humanitarian and strategic grounds, that the current five-year plan should succeed in its objectives and that the extra defence effort of India should not interfere with those objectives unduly? Is this the attitude the Government will bring to these talks? Will they try to persuade other countries to co-operate in giving extra aid to India in this situation?

Mr. du Cann

I agree very much about the needs of the situation. The hon. Member may be aware that the Indians are currently revising their economic plans. The matters to which he referred will be taken particularly into account, especially at the second meeting of the consortium.

Mr. Ridley

Would my hon. Friend agree that our commitment to the consortium should be within out capacity on balance of payments? Will he bear that in mind?

Mr. du Cann

Yes, very much so. My hon. Friend will remember that I referred particularly to this point during the Budget debate a few weeks ago.