56. Mr. Mc Crindleasked the Secretary of State for Foreign and Commonwealth Affairs what steps he is taking to help the Zambian economy.
§ Mr. RaisonWe have pledged more than £30 million to the Zambian Government since last summer. In June we agreed to provide £4 million in programme aid, and £10 million to be associated with the World Bank's special facility. In December we undertook to provide a further £8 million in programme aid, and £5 million in association with the special facility. We also agreed a special grant of more than £1.5 million to permit the clearance of arrears of payments on aid loans. In addition, I have agreed to provide £3.17 million for a continuation of the integrated rural development project.
§ Mr. McCrindleIn welcoming that package of measures, may I ask my right hon. Friend to update the House on the present state of negotiations between the IMF and the Zambian Government, and particularly on the degree of dependence of the Zambian economy on mining, because the fall in copper prices recently must clearly have had adverse effect?
§ Mr. RaisonI think it is well known that the major problem facing Zambia has been the fact that its economy in earlier years was heavily dependent on copper prices, which, of course, have fallen in recent years. That has helped produce its substantial problems. Zambia is making good progress in its discussions with the IMF, and I am glad to be able to support it.
§ Mr. DeakinsDoes the Minister intend to help Zambian agriculture by making an appropriate contribution to the international fund for agricultural development?
§ Mr. RaisonI am glad to say that agreement has just been reached within IFAD. I have also just announced a new contribution to the integrated rural development programme in Zambia.