§ 13. Mr. Patrick Jenkinasked the Minister of Overseas Development whether she will introduce arrangements to provide Government guarantees, up to an appropriate level and subject to suitable safeguards, in respect of direct investments by British industry in developing territories.
§ Mrs. CastleI am, of course, studying all possibilities of helping the developing countries, but the hon. Member will realise that in our present balance of payments position we must consider carefully the implications of measures to increase private investment overseas.
§ Mr. JenkinDoes it remain the policy of Her Majesty's Government that private investment in developing countries should play a significant part in the development of those countries? Will the right hon. Lady recognise that some guarantee against the political risks involved in such investment could well make a valuable contribution?
§ Mrs. CastleI agree that private investment has an important role to play in the economies of developing countries. How important varies from country to country and the degree of development reached. It is simply a matter of priorities and I consider the overriding priority is to provide aid which will give the infrastructure economic and political stability.