HC Deb 18 January 1968 vol 756 cc1933-6
11. Mr. Braine

asked the Minister of Overseas Development if it is still the Government's intention to meet the United Nations Commission for Trade and Development target of 1 per cent, of the national income to be spent on aid and private investment in developing countries.

Mr. Prentice

Yes, Sir. It is still our aim to do so.

Mr. Braine

Is it not singularly unfortunate that there should be this uncertainty about the level of aid on the eve of the U.N.C.T.A.D. conference, bearing in mind the very constructive lead which we gave to the U.N.C.T.A.D. meeting in 1964? To resolve this uncertainty and put beyond doubt what the right hon. Gentleman said about the extra compensatory aid for Singapore and Malaysia, which is a revelation to right hon. and hon. Members on this side of the House, would the Government consider publishing a White Paper setting out clearly what is likely to be the level of aid in the coming year, and how it will affect particular programmes?

Mr. Prentice

It would be premature to publish a White Paper. The whole programme has to be looked at as a result of the effects of devaluation, and adjustments have to be made. We have not yet made the decisions on these, and some will have to be followed by negotiations. There are two uncertain items. There is the Singapore and Malaysia item, on which I have a question later. Then there is the replenishment of I.D.A. It is unfortunate this has not been settled before the second U.N.C.T.A.D. conference. I hope that it will be. It is the British Government's view that this should be settled as soon as possible on the lines we have suggested.

Sir Harmar Nicholls

While my hon. Friend may be pleased that it is being kept at this level, many people share the view of the right hon. Member for Easington (Mr. Shinwell) that there is something incongruous in our having to borrow money at a high rate of interest and pass it out at a lower rate or at no interest at all unless it is tied to some exports which will help us in this critical period.

Mr. Prentice

It would also be incongruous if at this period in the 20th century the richer countries were obsessed with the money that they owe each other and turned their backs on two-thirds of the world which is in dire poverty. As for the tying of aid, a good deal is tied, and even the part which is untied results in a fairly big proportion of orders in this country.

12. Mr. Higgins

asked the Minister of Overseas Development what positive initiative Her Majesty's Government are proposing to take at the United Nations Commission for Trade and Development in 1968; and whether he will reaffirm Her Majesty's Government commitment to devote 1 per cent, of the national income to aid and private investment in developing countries.

Mr. Prentice

Her Majesty's Government hope to contribute constructively to the discussion of development questions at the Second U.N.C.T.A.D., but our present economic difficulties must clearly limit our power to take new initiatives. We have in the past achieved or exceeded the 1 per cent, target as defined by the Development Assistance Committee of the O.E.C.D. and expect to do on doing so.

Mr. Higgins

That is really a remarkably vague answer, in view of the important rôle played by private investment in the developing countries. Has the right hon. Gentleman no initiative to discuss that particular point? Will he give an assurance that the Government will not restrict exports of capital to the developing countries?

Mr. Prentice

I think that we should see the second U.N.C.T.A.D. conference as being a very important stage in the continuing discussion of these matters between Governments. It should not be regarded as a once-and-for-all occasion on which new decisions are made.

Mr. Evelyn King

Is the Minister aware that the Government are still spending £400,000 a year on the naval patrol opposite Beira, which serves no useful purpose and benefits no African? Will he not consider diverting that into useful and productive economic aid?

Mr. Prentice

That does not come under my responsibility, although I do not agree with the hon. Gentleman's view about the usefulness of the patrol.