§ 6. Mr. Francis Noel-Bakerasked the Minister of Overseas Development what criteria he proposes to apply in the allocation of aid and technical assistance to developing countries in future; and to what extent the economic or other interests of the United Kingdom will be factors in determining these allocations.
§ Mr. OramThe policies are described in Cmnd. 2736. We make our allocations primarily in order to help developing countries raise their living standards. 687 While that is the main motive we recognise that donors and recipients share mutual benefits from aid programmes and we pursue these mutual benefits whenever they are consistent with the major objective.
§ Mr. Noel-BakerDoes my hon. Friend agree that it is not altogether a bad thing that recipient countries should realise that British aid is often of advantage to the United Kingdom, and that that very often puts the relationship on a more realistic basis?
§ Mr. OramI agree. I think that they know of the mutual effect of aid, and I think that it is a good thing that they know and that we know.
§ Mr. OnslowIs the hon. Gentleman also aware that it is also often of disadvantage, and will he ask his Department to commission a study on the effects of aid in preventing necessary structural changes in this country as well as the possibility of tax reductions?