§ 9. Mr. Wallasked the Minister of Overseas Development to what extent it has now been arranged for aid to Zambia 689 to be tied to the purchase of British goods.
§ Mr. OramAll aid administered by the Department—that is, excluding defence aid and contingency planning assistance—is tied to British goods and services, except for the £1 million grant to the new university, of which I estimate that £400,000 will be spent on British goods and services.
§ Mr. WallCan the hon. Gentleman explain why all the major Zambian Government contracts since last summer have been placed with Italian, French, American, Japanese and Yugoslav firms—the Yugoslav contract, worth over £20 million, at a time when the British taxpayer was paying £15 million towards Zambia? Should we not have a quid pro quo?
§ Mr. OramThe question relates to the provision of British aid, and the contracts to which the hon. Member referred are not financed in that way.
§ Sir G. NabarroIs it not the fact that the contract placed by the Zambians with an Italian consortium for building an £11 million oil pipeline, for which British firms tendered on competitive terms, was indeed an item of specific aid by his Department? Is not his reply therefore totally misleading?
§ Mr. OramNo, Sir. I indicated in my original reply that our loans are completely tied to British contracts.