§ 56. Mr. Jannerasked the Secretary of State for Foreign and Commonwealth Affairs what level of aid is proposed to India for the next 12 months.
§ Mr. Chris PattenIn the current financial year we plan to spend about £108 million on bilateral aid to India and approximately £6 million from the aid and trade provision. We have also told the Government of India that India could expect soft loans or mixed credit for British exports to a value of up to about £300 million over the next five years provided the two Governments identify and agree the desired projects. This would be additional to our normal programme of grant-aid.
§ Mr. JannerI welcome the increase in aid to India. However, does the Minister agree that the level of poverty and deprivation in that country are staggering and that we should do everything in our power to help? Can the House have the Minister's assurance that the present unhappy differences on matters of policy between Her Majesty's Government and the Indian Government will not be allowed to interfere in any way with the aid programme?
§ Mr. PattenWe would like to see ever warmer relations with the Indian Government. India is the largest recipient of our aid on a bilateral basis, because the largest number of people in absolute poverty live there.
§ Sir John Biggs-DavisonNow that Mr. Rajiv Gandhi has denounced Her Majesty's Government as racist for requiring visas, as India does, how can the Indian Government bear to accept aid from us?
§ Mr. PattenThat is a question that might be directed to Mr. Gandhi. We have made our views on visas well known to him.