HC Deb 14 July 1986 vol 101 cc680-1
47. Mr. Stuart Holland

asked the Secretary of State for Foreign and Commonwealth Affairs whether he intends to increase United Kingdom official development assistance to central America.

Mr. Raison

I have no plans to do so.

Mr. Holland

Does the Minister really think that it is right that inter-American Development Bank loans to Nicaragua should be frozen because of the concern of the United States to destabilise the democratically elected Government of that country? Further, does he oppose the United States Administration in their efforts now to gain a veto over all inter-American Development Bank lending? Does he think it right that a superpower should be able to dominate such a regional development bank, as if there had been no end to the Monroe doctrine? Will he take advantage of the coming recess to visit Central America, including Nicaragua, to evaluate the situation for himself?

Mr. Raison

I have no plans to visit Nicaragua, but our view about inter-American Development Bank loans has always been that they should be made on the basis of objective economic analysis.

Mr. Forman

Although it may not be appropriate to increase United Kingdom official development assistance to countries in that part of the world, does my right hon. Friend look favourably upon the prospect of increasing assistance through the European development fund or other European instruments?

Mr. Raison

The European Community is interested in giving aid to Central America and, among other countries, it gives quite a substantial amount of aid to Nicaragua. There is no doubt that the Community is looking in that direction, and with the accession of Spain it is likely that there will be more pressure to spend aid funds in Latin America.

Mr. Deakins

What are the obstacles to Britain giving more bilaterial aid to Nicaragua?

Mr. Raison

I do not think that there are obstacles, but it is a matter of priorities. Our priorities are to aid the poorest countries and Nicaragua is not one of the poorest countries. We focus our aid to a considerable extent on countries with which we have a long, traditional connection.

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