HC Deb 30 May 1968 vol 765 cc2114-5
16. Mr. Henry Clark

asked the Minister of Overseas Development what estimate he has made of the effect the new arrangements, whereby the United States contribution to the International Development Association will be called on to meet disbursements on new credits only for the amount needed to finance procurement in the United States of America, will have on the level of British exports arising from International Development Association loans.

Mr. Prentice

I have no reason to believe that the level of British exports will be affected by these arrangements.

Mr. Clark

In view of the Minister's Answer on 14th March, it seems rather surprising that American aid will be tied. Does the right hon. Gentleman still believe that every £ contribution of international aid will still result in 30s. of British exports, despite the tying of this contribution to I.D.A.?

Mr. Prentice

There is some misunderstanding here, which is not surprising in view of the complication of the subject, but the aid will not be tied. The arrangement is that American aid will be drawn down in the early stages at the rate of American procurement but the American commitment over three-year period will be the same. They will be able to postpone some of their contributions but they will come in later. This will have a relative effect on our exports in the earlier part of the period but we will catch up in the later part.