HC Deb 21 December 1967 vol 756 cc1458-60
13. Mr. Braine

asked the Minister of Overseas Development whether he will make a statement about compensating aid to Singapore as a result of the projected military withdrawal.

18. Mr. Bryant Godman Irvine

asked the Minister of Overseas Development whether he will make a statement about compensatory aid to Malaysia as a result of the projected military withdrawal.

Mr. Prentice

We have offered grants of £1½ million to Singapore and £1 million to Malaysia in respect of the year 1967–68. Pending approval of Supplementary Estimates advances are being sought from the Civil Contingencies Fund in order that these sums may be made available to them. Consideration is still being given to subsequent aid.

Mr. Braine

Would the Minister not agree that before considering what compensatory aid could be given, a proper estimate should have been made of the full economic effects of the defence rundown? Is he aware that there is very considerable feeling in business circles in Singapore that this was not done? Unlike the Robens mission to Malta, the Dudley mission did not contain a single businessman. Will the Minister explain why no business opinion was consulted about this?

Mr. Prentice

The mission led by Sir Alan Dudley is not the only mission which has gone. Economists went out from my Department earlier than that, so we have carried out the kind of study mentioned by the hon. Member. There have been a number of contacts with industrial representatives in Britain about the possibilities.

Mr. Godman Irvine

Will the Minister arrange for the aid to be sent to Singapore in such a way that British firms are certain of making a contribution to creating fresh jobs?

Mr. Prentice

It is likely that the aid will need to go in a number of different ways, including some projects that will be linked with the plans of British firms. This is an aspect which we are studying very closely.

Mr. Dalyell

When my right hon. Friend is considering the report of the Dudley mission, will he bear in mind that some hon. Members on this side of the House are very cynical indeed about the requests of Mr. Lee Kuan Yeu for aid to Singapore? We feel that this country has done a great deal for Singapore. We welcome what has been done for the teachers' training college, but we urge him to have a very hard look at the requests that are made, which some of us feel may not be justified.

Mr. Prentice

We are studying the whole problem very hard. To get it into perspective, it is important to realise that over 20 per cent, of the jobs in Singapore are jobs which arise from the British base. This is a country which already has a high rate of unemployment.

Sir G. Nabarro

Earlier in his Answers the Minister used the term "a good deal of aid is tied aid". Will he now give an unequivocal assurance that the £1 million for Malaysia and the £1½ million for Singapore, a total of £2½ million, will be solely tied aid so that only British goods and services, to use spare capacity in this country, are given to these members of the Commonwealth?

Mr. Prentice

No, Sir. I cannot give an assurance in relation to that, but when we—

Sir G. Nabarro

Then your words are worthless.

Mr. Prentice

No, they are not worthless. I wish that the hon. Member would pay proper attention to exactly what was said in reply to Questions instead of just shouting abuse across the Floor of the House. As to the larger sums we shall be considering for the future—if the hon. Member will listen— certainly a proportion is likely to be in the form of tied aid.