§ 30. Mr. Oramasked the Secretary of State for Foreign and Commonwealth Affairs what attitude the British delegation to the forthcoming meeting of the United Nations Conference on Trade and Development will take on the subjects of compensatory finance for developing countries suffering unexpected shortfalls in export earnings and the linking of special drawing rights in the International Monetary Fund to development finance.
§ The Minister for Overseas Development (Mr. Richard Wood)Instructions to the British delegation are still being 25 discussed, but the Supplementary Financial Measures Scheme put forward in 1964 has attracted little support amongst donor countries and the problems it was intended to ease have been tackled in other ways. The question of linking special drawing rights with aid is being studied by the International Monetary Fund.
§ Mr. OramWill the right hon. Gentleman recognise the urgent need of using U.N.C.T.A.D. III as an opportunity for reconciling the interests of the developing countries with those of the developed world? Since it has been a problem in the last 20 years that the share of export earnings which developing countries have had has been declining, is it not vitally important that Britain should take the initiative, not necessarily in exactly the same way as was done at U.N.C.T.A.D. II but in putting forward some proposals for overcoming the problem?
§ Mr. WoodThe general purpose that the hon. Gentleman mentioned is obviously the main purpose of the U.N.C.T.A.D. III meeting: that the developed and the developing countries should meet to discuss these things and make constructive suggestions. In fact, there have been a number of developments since these measures were suggested, particularly the supplementary financial measures, and the hon. Gentleman will know that the I.D.A. now plays a much more important part. Its resources have been trebled and there have been other ways in which the necessary finance has been made available to the developing countries in those circumstances.
§ Mr. BlakerIs it not regrettable that the United States has not put into effect the generalised preference scheme which was agreed at the last U.N.C.T.A.D. meeting? Are Her Majesty's Government considering what can usefully be done at the forthcoming conference, or before, to encourage the United States to do so?
§ Mr. WoodThat is a matter for the United States Government. This will also be a matter to be discussed at the meeting.
§ Mrs. HartIn view of the tremendous importance of the forthcoming U.N.C.T.A.D. meeting—which, as the 26 right hon. Gentleman knows, is held only every four years—and in view of the increasing urgency attached to trading with developing countries, could the right hon. Gentleman publish a White Paper on the Government's proposals for their own approach at the U.N.C.T.A.D. meeting?
§ Mr. MaclennanWhat is the Government's present thinking on the desirability and practicability of linking development aid to special drawing rights?
§ Mr. WoodAs I said in my original answer, this matter is being examined by the International Monetary Fund. I do not wish to be evasive in response to the hon. Gentleman's question but I think it would be difficult to state an attitude until we know the kind of ideas which may emerge from those studies. When we see them, we shall consider what our attitude should be. I should not myself be opposed to a link if the basis for such a link could be established in the International Monetary Fund study.