§ 39. Mr. Juddasked the Secretary of State for Foreign and Commonwealth Affairs in which countries outside the Commonwealth the Commonwealth Development Corporation now has projects; what have been the principal financial problems encountered in taking on projects in non-Commonwealth countries; and whether he will make a statement.
§ Mr. WoodThe Commonwealth Development Corporation has projects in Cameroon and in Indonesia and others are being considered in Ethiopia and Thailand. The two main financial difficulties encountered by the Corporation in non-Commonwealth countries concern its tax position and the high cost of commencing operations in new countries.
§ Mr. JuddWhile thanking the Minister for that reply, may I ask whether he would also agree that one of the difficulties about the Corporation's effectiveness outside the Commonwealth is the very high interest rates at which money is made available by the Treasury in this country? Is there any prospect of seeing favourable rates of interest charged on money to the Corporation for projects outside the Commonwealth?
§ Mr. WoodThis is a matter which, as the hon. Gentleman knows, we have been considering. I shall certainly take note of what he said because I, too, am very anxious, as, I believe, is the hon. Member, that the C.D.C. should widen its operations in the developing world generally.
Mr. Edward TaylorBefore considering an extension of the corporation's activities in Indonesia, would my hon. Friend get a satisfactory settlement with the Government of Indonesia of outstanding claims to compensation for British assets seized?