§ 8. Mr. Blakerasked the Chancellor of of the Exchequer if he will make a statement about the recent agreement by the Finance Ministers of the EEC for the raising of a loan of $3,000 million to assist member countries in dealing with the problems resulting from the increased price of oil.
§ Mr. HealeyThe scheme under consideration is that the Community should borrow funds in its own name from external sources and relend them to member States in balance of payments difficulties arising from the oil price increases.
Draft regulations setting out the framework of a scheme, together with an explanatory memorandum, have been deposited in the House. Specific Council decisions will be required at a later stage before any transactions are approved.
The scheme is of potential value to member countries in financing their balance of payments deficits and would play a part in meeting the immense problem of recycling oil surplus funds.
§ Mr. BlakerIs it not clear that this will be a welcome addition to the means available to the Community to help its members? Will the Chancellor say whether it is intended, once this initial slice of $3,000 million has been arranged, to follow it up with further loans on similar lines? Can he confirm that if by some mischance we leave the Community we would be unable to take advantage of the arrangement?
§ Mr. HealeyOn the hon. Gentleman's last point, my support for this facility has been in no way influenced by any idea 573 that I expect Britain to require to make use of it, at any rate in the foreseeable future. But I welcome the hon. Gentleman's view that the arrangement is an important, though modest, addition to the facilities available for recycling oil funds.
With regard to further sums being borrowed and on-lent at a later stage, I would hope that that would be possible, but some members of the Community were anxious to limit the initial sum to what I regard as a comparatively small amount.