§ 4. Mr. Higginsasked the Minister of Overseas Development what progress is being made in negotiations between the World Bank and contributors to the International Development Association regarding replenishment of the funds of the Association; whether he is satisfied that a solution to the problem will be found before the forthcoming United Nations Commission for Trade and Development meeting; and if he will make a statement.
§ Mr. PrenticeA meeting of representatives of the Part I donors has just concluded in The Hague. Further meetings are planned in the hope of reaching a settlement before the second UNCTAD. Throughout the discussions, Her Majesty's Government have stressed to their fellow Part I donors the urgency and importance we attach to I.D.A. replenishment. We have notified the President of the Bank that, subject to satisfactory conditions, we are prepared to invite Parliament to make provision for the proportionate British contribution to a replenishment of I.D.A. at double the present level.
§ Mr. HigginsWould the Minister give particular attention to this matter inasmuch as the effect on our balance of payments is very considerable—a favourable effect, if anything—given that the untied aid results in a considerable increase in British exports?
§ Mr. PrenticeYes. I can confirm that we get a good deal more back in terms of orders as a result of I.D.A. activities than we put into the Association. For 1220 that reason and many others, because of this effect of aid, we want to see a substantial replenishment and we want to see this matter resolved urgently.
§ Mr. WhitakerWill my right hon. Friend ensure that there is co-ordination with the President of the Board of Trade, because there is no point in giving overseas aid to under-developed countries, on the one hand, and shutting out their products with tariff barriers, on the other hand?
§ Mr. PrenticeThat is an important point but I do not think that it arises directly from the Question.