§ 12. Sir F. Bennettasked the Minister of Overseas Development how much aid will be given to India and Pakistan, 712 respectively, in the financial year 1967–68; and in what form and on what terms this aid will be given.
§ Mr. BottomleyAid to India and Pakistan for 1967–68 is subject to negotiations and consultations with their Governments and in the World Bank Consortium. I cannot at this stage forecast how much we shall pledge or disburse to these countries in total.
British financial aid to India and Pakistan is currently in the form of interest free loans for 25 years with a seven-year grace period before repayments begin.
§ Sir F. BennettThe Minister will not need reminding that aid is to be cut by at least £20 million. Can he say how much, if any, of that will fall on India and Pakistan, taking into account the near-famine conditions in large areas of the first, and that the second, Pakistan, is in a critical position of pre-take-off to a very much better economic situation than has obtained?
§ Mr. BottomleyThere was a recent meeting of the Consortium in Paris, as the hon. Member will know, and there Britain took the lead which has been acknowledged. We cannot say exactly where the cuts will fall because programmes for the future are not yet complete.
§ Mr. John LeeDoes not my right hon. Friend realise the urgency of this matter and that, of all the countries in the Commonwealth, India is in the most serious position? It would be awful if the mutual aid which we can give were cut still further.
§ Mr. BottomleyYes, this is recognised. That is why India receives more aid than any other country.