HC Deb 13 December 1971 vol 828 cc18-9
33. Mr. Pavitt

asked the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement about the recent visit to India of the Minister for Overseas Aid.

Mr. Wood

I returned to England on 1st December after spending two weeks in or near Bombay, Delhi and Calcutta, at the invitation of the Government of India.

I was able to see examples of the developments in agriculture, and I looked at both light and heavy industry, at some of the educational institutions which we are assisting, and at urban improvement work in Calcutta. I had useful talks with a number of Ministers about the continuing rôle of British aid, and I signed two loan agreements. I also discussed, both with Ministers and with business men, the opportunities for foreign private investment.

Finally, in West Bengal, I saw some of the refugee camps, and the work of voluntary organisations from Britain within them. This has given me a clearer idea of some of the problems that will have to be solved when the fighting is over.

Mr. Pavitt

In planning his forward programmes, will the right hon. Gentleman bear in mind the tremendous amount which India has given in order to deal with the refugee problem, which the right hon. Gentleman has seen? Although India still ranks high in the total amount of aid given, because of its large population and large area which has to be extended, will the right hon. Gentleman ensure that the amount is even larger to deal with the fresh problems which he has seen?

Mr. Wood

I shall have very much in mind in the next few months all the considerations which the hon. Gentleman mentioned. I appreciate the continuing need not only for development in India but for the relief of the refugees, whether they remain in West Bengal or in East Pakistan, in the next few months.

Mrs. Hart

In considering this matter, will the right hon. Gentleman bear in mind that a new factor seems to have entered into the situation, and that is the extraordinary and regrettable decision of the United States Government to cease providing economic aid to India? In my view, this is an added reason for calling a meeting of the India Aid Consortium.

Mr. Wood

As I understand it, the United States Government have suspended that portion of their promised aid to India which has not been committed. My view is that we should continue to give India the aid which we have pledged. Therefore, I hope that the right hon. Lady and I are in full agreement.