§ 27. Mr. Blakerasked the Minister for Overseas Development if he will make a statement about progress achieved in planning for the introduction of an earnings stabilisation scheme for developing countries as foreseen at the Lomé Convention.
§ Mr. PrenticeThe European Commission, in consultation with the member States and the developing countries participating in the Lomé Convention, is now planning in detail for the introduction of the earnings stabilisation or "Stabex" scheme provided for in the Convention. This involves making arrangements for statistical reporting and for the processing of claims. The scheme will cover the years 1975 to 1979 inclusive, but no payments can be made until the ratification of the Lomé Convention is completed, probably early in the second quarter of this year.
§ Mr. BlakerIs the right hon. Gentleman aware that at the middle of last month the position was that a sufficient number of developing countries had completed the ratification processes but only three member countries of the EEC had ratified, and that this country had not clone so? Has Britain yet ratified?
§ Mr. PrenticeYes, very recently. Both Houses of Parliament aproved the necessary motion before Christmas and our ratification has just been notified. As I said in my answer, we expect the whole process to be complete by the end of the second quarter of this year.
§ Mr. LuardIs not this scheme a model that could usefully be imitated in relation 26 to developing countries generally? Did not Dr. Kissinger suggest something on these lines at the Special Assembly of the United Nations in September? Given the difficulties of securing agreement on commodity schemes, should not the Government support measures of this kind?
§ Mr. PrenticeThese matters are under discussion in many different fora. One forum has been the recent meeting of the International Monetary Fund. Later this afternoon my right hon. Friend the Chancellor will be making a statement on that, which I hope my hon. Friend will find satisfactory. There will be ongoing discussions in the UNCTAD conference in a few months' time and in various other ways. There is much in this Stabex scheme from which we can learn, although applying it globally would involve a great many complications.
§ Mr. HooleyCan my right hon. Friend say whether there will be any formal liaising between the operation of the Stabex scheme and the IMF compensatory financing scheme? Would it not be rather unfortunate if we had two competing international schemes?
§ Mr. PrenticeInevitably this becomes a rather complicated picture. Clearly both the IMF Secretariat and the European Commission will be in touch about what is happening on both fronts.