HC Deb 29 February 1968 vol 759 cc1740-3
21. Mr. Judd

asked the Minister of Overseas Development what will be the net cost of the British overseas aid and development programme in 1967–68 and 1968–69 as compared with the gross targets for those years after the receipt of interest and capital repayment on loans to the developing countries; and whether he will publish in the OFFICIAL REPORT a detailed analysis of such repayments.

Mr. Prentice

The gross target for the basic aid programme in each year is £205 million. Figures for actual disbursements cannot yet be given. Capital repayments and interests together are expected to amount to about £53 million and £58 million respectively in the two years. I shall, with permission, circulate details in the OFFICIAL REPORT.

Mr. Judd

Would not my right hon. Friend agree that the amount of aid now

EXPECTED CAPITAL REPAYMENTS AND INTEREST PAYMENTS ON BRITISH GOVERNMENT ECONOMIC AID LOANS TO DEVELOPING COUNTRIES
£ million
1967–68 1968–69
Capital Interest Total Capital Interest Total
A. COMMONWEALTH
Europe and Middle East
Cyprus … 0.042 0.069 0.111 0.174 0.064 0.238
Gibraltar … 0.012 — 0.012 0.015 0.014 0.029
Malta … 0.093 0.344 0.437 0.113 0.415 0.528
Africa
West Africa
Gambia … — 0.002 0.002 — 0.002 0.002
Ghana … 0.360 0.178 0.538 0.490 0.158 0.648
Nigeria … 1.004* 1.518 2.522 1.253* 1.540 2.793
Sierra Leone … 0.239 0.358 0.597 0.244 0.344 0.588
East Africa
Kenya … 0.623 2.081 2.704 0.650 2.098 2.748
Tanzania … 0.091 0.471 0.562 0.150 0.475 0.625
Uganda … 0.198 0.880 1.078 0.414 0.869 1.283
General—Kenya, Tanzania and Uganda … 0.492 0.723 1.215 0.511 0.778 1.289
Central and Southern Africa
Botswana … 0.044 0.101 0.145 0.047 0.099 0.146
Lesotho … 0.012 0.027 0.039 0.015 0.025 0.040
Malawi … 0.154 0.242 0.396 0.168 0.261 0.429
Rhodesia … 0.150 0.084 0.234 0.326 0.261 0.587
Swaziland … 0.070 0.150 0.220 0.088 0.146 0.234
Zambia … 0.172 0.209 0.381 0.176 0.200 0.376
Other Africa
Mauritius … 0.157 0.201 0.358 0.128 0.201 0.329
Seychelles … 0.005 — 0.005 0.005 — 0.005
St. Helena … 0.001 — 0.001 0.001 — 0.001
America
Central and Caribbean
Cayman Islands … 0.001 0.007 0.008 0.001 0.009 0.010
Honduras (British) … 0.028 0.044 0.072 0.027 0.042 0.069
Jamaica … 0.109 0.074 0.183 0.072 0.072 0.144
Montserrat … 0.015 — 0.015 — — —
St. Vincent … 0.001 — 0.001 0.001 — 0.001
Trinidad and Tobago … — 0.056 0.056 — 0.073 0.073
Turks and Caicos … — — — 0.003 — 0.003
Associated States
Antigua … 0.013 0.047 0.060 0.014 0.046 0.060
Dominica … 0.001 — 0.001 0.001 — 0.001
Grenada … 0.061 0.044 0.105 0.066 0.042 0.108
St. Kitts … 0.009 — 0.009 0.009 — 0.009
St. Lucia … 0.002 0.002 0.004 0.002 0.002 0.004
General—West Indies … 0.026 0.014 0.040 — — —
South America
Guyana … 0.363 0.771 1.134 0.385 0.749 1.134

coming back in the form of interests and capital repayments is extremely worrying, that loans are a most unfortunate form of assistance, and that we should move still further away from a reliance on loans as soon as possible?

Mr. Prentice

It is reasonable that a proportion of aid should be in the form of loans, but these loans should take account of the economic circumstances of the countries concerned. That is why one of the most important improvements in our aid programmes came about two or three years ago, when we moved in the direction of interest-free loans. About 90 per cent. of our new loans since then have been interest-free.

Following is the information:

£ million
1967–68 1968–69
Capital Interest Total Capital Interest Total
Asia (excluding Middle East)
Ceylon 0.487 0.77 0.564 0.440 0.055 0.495
Hong Kong 0.200 — 0.200 0.200 — 0.200
India 10.964 8.519 19.483 12.856 8.194 21.050
Malaysia 0.855 0.045 0.900 0.855 0.029 0.884
Pakistan 2.156 1.537 3.693 2.336 1.730 4.066
Singapore 0.014 — 0.014 0.189 — 0. 189
Oceania
Fiji 0.043 0.123 0.166 0.046 0.120 0.166
Tonga 0.004 0.004 0.008 0.007 0.004 0.011
General
Commonwealth Development Corporation (Exchequer Advances) 1.121 3.613 4.734 1.930 5.573 7.505
Total 20.392 22.615 43.007 24.408 24.692 49.100
B. FOREIGN
Europe and Middle East
Iran — 0.172 0.172 — 0.229 0.229
Republic of S. Yemen 0.140 0.189 0.329 0.141 0.184 0.325
Turkey 1.026 0.099 1.125 1.603 0..234 1.837
Yugoslavia 2.125 0.528 2.653 1.295 0.058 1.353
Africa
North Africa
U.A.R. (Egypt) 0.480 0.142 0.622 0.480 0.119 0.599
West Africa
Cameroons 0.017 0.042 0.059 0.009 0.020 0.029
Liberia — 0.014 0.014 — 0.014 0.014
East Africa
Sudan — 0.291 0.291 0.320 0.306 0.626
America
South America
Argentina 1.604 0.531 2.135 1.976 0.436 2.412
Bolivia 0.036 0.011 0.047 0.036 0.009 0.045
Brazil 1.003 0.217 1.220 0.604 0.156 0.760
Chile 0.438 0.291 0.729 0.632 0.256 0.888
Ecuador — 0.015 0.015 — 0.022 0.022
Peru — 0.021 0.021 — 0.034 0.034
Asia (excluding Middle East)
Afghanistan — — — 0.022 — 0.002
Korea (South) — 0.023 0.023 — 0.032 0.032
Nepal 0.026 0.035 0.061 0.026 0.037 0.063
Total 6.895 2.621 9.516 7.124 2.146 9.270
Grand Total 27.287 25.236 52.523 31.532 26.838 58.370
*Excludes interest-free loan for compensation for Special List "B" officers, repayments of which vary with numbers retiring.
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