§ 1. Mr. Wingfield Digbyasked the Minister of Overseas Development, in the light of the increase in overseas economic aid from £77 million in 1954–55 to £191 million in 1964, what savings she will make in order to curtail the total of Government spending overseas.
§ The Minister of Overseas Development (Mrs. Barbara Castle)We shall not deliberately curtail the aid programme, but will seek to provide our aid in forms least detrimental to our balance of payments.
§ Mr. DigbyWhile recognising that economic aid is important, may I ask the right hon. Lady to bear in mind that her right hon. Friend the Chancellor of the Exchequer repeatedly tells us that we cannot afford to invest so much overseas, that it is up to the Government to set an example in this case and that she needs to bear in mind the return of this investment in economic terms?
§ Mrs. CastleThe hon. Member has got his order wrong. Private investment abroad goes overwhelmingly to the developed and not to the developing countries. In any event, the aid which we give is essential to provide the infrastructure without which investment would not take place.
§ Mr. DellDoes my right hon. Friend's original Answer mean that there will be a reduction in multilateral aid as compared with bilateral aid?
§ Mrs. CastleNo. There was no such inference in my Answer.
§ Mr. R. CarrDid the right hon. Lady's use of the word "deliberate" in her Answer indicate that she was expecting a decrease although not, perhaps, as a result of deliberate action?
§ Mrs. CastleI am not expecting any decrease. On the contrary, I am hoping for an increase.
§ Mr. TilneyWill the right hon. Lady bear in mind that a considerable amount 1483 of private investment is still going to overseas developing countries, and will she urge her right hon. Friend the Chancellor of the Exchequer to differentiate between the developing and the developed countries?
§ Mrs. CastleUnfortunately, the rate of private investment in Commonwealth developing countries has been decreasing.