§ 15. Mr. Braineasked the Minister of Overseas Development how much aid he estimates will be allocated to India and Pakistan, respectively, in the financial year 1969–70; in what form and on what terms the aid will be given; and how much he estimates India and Pakistan, respectively, will repay during the same period in interest and amortisation on previous aid from this country.
§ Mr. PrenticeThe United Kingdom will pledge its aid to India and Pakistan for the year 1969–70 at the Consortium 953 meetings to be held in Paris during the week commencing 18th May and I will make an announcement about this as soon as possible. We expect to pledge aid in both project and non-project form and its terms will be interest-free loans repayable over 25 years with a seven-year period of grace. I estimate that during 1969–70 India will pay to the United Kingdom £7.4 million and £13.2 million and Pakistan £1.5 million and £1.4 million, respectively, in interest and amortisation. The level of our gross aid disbursements to both countries is, of course, well above the level of repayments.
§ Mr. BraineWhilst I am sure that we are all grateful to the Minister for giving us so much information, in view of India's continuing burden of repayment can the right hon. Gentleman estimate the proportion of gross aid, both British and multilateral, which will be available for new expenditure in India?
§ Mr. PrenticeI cannot make that estimate without giving the figure for the coming year. In the past year, we have provided £7.5 million towards the multilateral debt relief scheme out of our total disbursements of £31 million.