§ 2. Mr. Juddasked the Minister of Overseas Development what is the latest estimated cost to the balance of payments of the current aid and development programme.
§ Mr. PrenticeAbout one-third of the aid programme, roughly £70 million, is estimated as a current direct cost to the balance of payments. There are also indirect effects: for example, exports financed by aid may compete for industrial capacity with exports paid for on a normal commercial basis; on the other hand we gain export orders from the world aid effort in which our aid forms a part. Meanwhile interest and capital repayments of old aid loans are coming in at about £60 million per annum.
§ Mr. JuddDoes not my right hon. Friend agree that, in the light of the immediate arguments against increased aid in terms of our balance of payments situation, we should as soon as possible make it plain that the present size of our aid programme is not for all time and that we want to see it expanded as soon as possible?
§ Mr. PrenticeYes, Sir. Her Majesty's Government voted for the resolution at the second United Nations Conference on Trade and Development, by which we are committed to a larger programme as and when our balance of payments position permits.