HC Deb 19 November 1968 vol 773 c1096
16. Mr. Edward M. Taylor

asked the Minister of Overseas Development what is the Government's present programme of aid to Indonesia.

Mr. Prentice

We disbursed £4,000 in 1966 and £690,000 in 1967. We hope to disburse more than £2 million in the present financial year, and about £2 million in the coming one. Our current aid is largely in the form of interest-free loans for essential imports from Britain.

Mr. Taylor

Is it not a little absurd that our country should be giving £2 million to Indonesia, when some years ago it seized our assets amounting to almost £200 million, and there has as yet been no guarantee, or no prospect, of real compensation being paid?

Mr. Prentice

British commercial interests are re-establishing themselves in Indonesia, I understand with some success. It is not at all absurd. There is a group of donor nations which have pledged a considerable amount of aid to Indonesia, and in which we are playing a relatively modest part. It is the judgment of most of the major aid donors in the world that Indonesia has considerable need for development aid and can make successful use of it.