§ Q7. Mr. Dalyellasked the Prime Minister what negotiations he has now had with Governments of developing countries on additional aid from under-utilised resources in north-east England, Merseyside, south-west England, Wales, Scotland and Northern Ireland.
§ Q8. Dr. Brayasked the Prime Minister what negotiations have now taken place with Governments of developing countries on additional aid from under-utilised resources in northeast England, Merseyside, and Scotland.
§ Q9. Mr. Millanasked the Prime Minister what discussions he has now had with Governments of developing countries on additional aid from under-utilised resources in Scotland and northeast England.
§ The Prime MinisterNegotiations on additional aid from spare productive capacity are proceeding with a number of Governments. An agreement was signed yesterday with the Government of Ghana for a loan of £2,164,000 odd for the purchase of two cargo ships to be built on the North-East Coast. It would not be right for me to give details of other negotiations while they are still proceeding.
§ Mr. DalyellCan we be assured that the sum of £10 million mentioned in this connection on 18th December by the Deputy Prime Minister in answer to a Question will be completely provided?
§ The Prime MinisterAs the hon. Gentleman will understand, these negotiations are quite complicated, and very often of a technical character, but it is our intention to try to bring them to a successful conclusion.
§ Dr. BrayWould not the Prime Minister agree that the unemployment situation and the state of sterling today point to the need for much more vigorous action to increase exports? Would he consider offering considerably larger loans to finance exports on condition that 10 per cent. to 20 per cent. is paid for immediately by the return of overseas holdings of sterling?
§ The Prime MinisterAction is being taken on a very wide field, and further action will be taken. These loans are by way of aid and are guaranteed by the guarantee procedure. Perhaps any further questions on this might be addressed to the Chancellor of the Exchequer.
§ Mr. MillanEven if the Prime Minister cannot give specific details of the negotiations, can he at least give an assurance that some of these negotiations are concerned with work which will benefit industry in Scotland?
§ The Prime MinisterYes, Sir. One has been announced and others are under discussion.
§ Dame Irene WardMay I ask my right hon. Friend to accept my congratulations.—[HON. MEMBERS: "No."] 1175 Indeed, is my right hon. Friend aware that I always congratulate him when I think he has done well for the North-East Coast?
§ The Prime MinisterI am very grateful for that, and I shall look forward to a whole series of congratulations.
§ Sir C. OsborneWill my right hon. Friend make it clear to the House and to the country that this additional aid to under-developed countries can only come out of our profits and not out of our losses and that we can only send exports to these countries if they are paid for?
§ The Prime MinisterBroadly speaking, they must be supported by a good balance of payments situation which comes from an excess of exports over imports, including invisible exports. These loans are made under Section 3 of the Export Guarantees Act.