§ 22. Mr. Chatawayasked the Minister of Overseas Development what proportion of the British national income was supplied in aid, both private and official, in 1964; and what proportion is planned for 1970.
§ Mrs. CastleOfficial aid and private investment in developing countries amounted to 1.1 per cent. of our gross national product in 1964. As regards the second part of the Question, I would refer the hon. Member to my reply to him of 16th November.
§ Mr. ChatawayWill the right hon. Lady confirm that the National Plan does in fact mean that the proportion of our gross national product that goes in aid will be smaller in 1970 than it is today? Will not she give the figure for 1970, which clearly must have been assumed for the National Plan? It is no justification to argue that because there is to be a review of aid before 1970 therefore the figure ought not to be given, because every figure is to be reviewed.
§ Mrs. CastleI have no doubt that the hon. Member hopes that our Government will do what his Government did, when after the crisis which they engendered in 1961 they cut back aid and reduced the percentage alarmingly. On the contrary, the hon. Gentleman knows that we have increased aid and we hope to be able to continue to do so, and that is why we have promised under the National Plan to keep the whole situation under review as our balance of payments position improves.
§ 27. Mr. Chatawayasked the Minister of Overseas Development what proportion of the current aid programme is estimated to place an additional burden upon the United Kingdom balance of payments.
§ Mrs. CastleIt is difficult to give a precise answer, since this depends on the state of our economy and on the assumptions made about alternative uses of the resources involved, but the range of answers which might be given would all be below 50 per cent.
§ Mr. ChatawayWhile I appreciate that there must be room for argument about this proportion, whether it is 50 per cent. or whether, as Mr. Krassowski of the Overseas Development Institute argues, it is somewhat nearer nought, is it not misleading for the National Plan to suggest, as it does, that all overseas aid is a net loss so far as the balance of payments is concerned?
§ Mrs. CastleI do not accept that the National Plan does imply that. It is a fact, though, that this form of expenditure contains an element of difficulty for the balance of payments, however one may assess the size of that element. This is one of the difficulties we have to face.