OVERSEAS AID (Hansard, 9 June 1971)

§ Mrs. Judith Hart (Lanark)

I have one comment to make and one question to ask. I thoroughly approve of and give the warmest welcome to the two Orders which we are considering. One Order continues the present replenishment and the other provides for the new replenishment. I understand that one Order is needed because it is unlikely that the new replenishment can come into operation on 1st July as was originally hoped. Will the right hon. Gentleman be kind enough to explain why this is? Will he tell us how far this relates to the inability of Congress in the United States to pass the necessary appropriation? There was a delay at the time of the last replenishment, and I well remember being pressed on this by the hon. Member for Essex, South-East (Mr. Braine). I do not want to press the right hon. Gentleman, but I should like to know for information what is the position. I recognise that the Americans are finding it difficult to get appropriations for aid through Congress. Is this the reason for the delay? Are there other factors? What are the prospects?

My comment is that since these Orders carry out the replenishment which was agreed just over a year ago, it would not be inappropriate for me to pay a tribute to Sir Geoffrey Wilson, the former Permanent Secretary of O.D.M. and the other officials of the Department who put a tremendous amount of devotion and enthusiasm not only into getting our replenishment figure but into getting the total figure of replenishment. It is right that in this important area which matters so much to the third world we should recognise the great effort which they put into this work.

§ The Minister for Overseas Development (Mr. Richard Wood)

The right hon. Lady has asked me several questions which I will try to answer. The historical 1200 background she has given is unfortunately very relevant, as she realises. The Orders propose a course similar to the course she proposed earlier. They will enable us to ratify the third replenishment arrangements and to take part once again in the interim arrangements to keep the International Development Association going.

The right hon. Lady knows better than anyone, because she did it, that Britain played a leading part in achieving replenishment of $800 million a year. As she will remember, we would have been prepared to go to a higher figure on the lines recommended by the Pearson Commission, and she deserves great credit for this. I am deeply grateful for the credit she has given to others, particularly to Sir Geoffrey Wilson, who is no longer in my Department. I am glad that we agree—although we cannot agree on other things—about the value of the International Development Association, which allocates two-thirds of its aid to the Commonwealth countries.

If the House approves the I.D.A. (Third Replenishment) Order, we shall be able immediately to assure the Association that we shall make both the contribution and the subscription which the right hon. Lady arranged when she was in my office. The Order will not be made by my right hon. Friend until the replenishment becomes effective and we become bound by the arrangement, but the payment that we eventually make under the first Order will be reduced by subtracting the interim amount of our advance contribution, as under her arrangements.

In regard to the second Order on interim payments, the prospects for bringing in the new replenishment this summer have gradually grown more and more dim as they grew dim in 1968, for reasons the right hon. Lady will remember. Before the replenishment arrangement can be effective, at least a dozen Part I members with a certain category of subscriptions must express their readiness to pay. This makes notification by the United States essential before it can come into force.

On 8th April this year, Mr. McNamara, the President of the I.D.A., told Britain and other Part I members that there was virtually no chance of the U.S. Congress passing this by 30th June, 1201 which is the date replenishment would begin. But he repeated the assurance of the United States Secretary to the Treasury that President Nixon attaches great importance to replenishment at the agreed level and said that he would use all his influence to clear the passage of the legislation which had already been introduced into Congress and which he expects to be completed by the end of the year.

Shortly afterwards, in April, my right hon. Friends the Prime Minister, the Foreign Secretary, and the Chancellor of the Exchequer and I myself met Mr. Mc-Namara and discussed the situation. We have made various approaches to the other Part I members and have said that we are prepared to go ahead with this on the understanding that they will also be prepared to make their contribution. The position is that if the House approves the Interim Payments Order tonight, other Part I countries will be aware that Britain, which is the second largest contributor, will be ready to join with them in an interim replenishment. This will provide the certainty for the I.D.A. to plan the important loans which it is anxious to promote.

I hope that the House will be prepared to accept these two Orders.