§ Mr. Corbynasked the Chancellor of the Duchy of Lancaster what export credit rating is given to Nicaragua by his Department.
§ The Minister for Trade (Mr. Alan Clark)The Export Credits Guarantee Department cover for Nicaragua was withdrawn in March 1979 because of the economic problems caused by the civil war and the acute shortage of foreign exchange which followed.
§ Mr. CorbynIs the Minister now prepared to reconsider implementing an export credit guarantee for trade with Nicaragua? Does he not realise that there is a great potential for exports, particularly for agricultural and forestry equipment, to Nicaragua? Does he also accept that by refusing to give export credit guarantee cover to trade with Nicaragua the British Government are in effect taking part in the economic blockade of Nicaragua imposed on that country by the United States Government?
§ Mr. ClarkWhether to extend credit is entirely a commercial decision for the Export Credits Guarantee Department. The present external debt of Nicaragua is $1.3 billion. Negotiations for rescheduling even part of that broke down as the Nicaraguan Government, unlike the Labour Government in 1976, refused to submit to IMF scrutiny.
§ Sir Geoffrey FinsbergDoes my hon. Friend accept that taxpayers of this country support his attitude and that they do not want to pump their money into the drain that is Nicaragua?
§ Mr. Alan ClarkI am grateful for my hon. Friend's support. Naturally, we hope that in the fullness of time Nicaragua and other South American countries which do not go along with IMF requirements will come into line. There is trade potential. However, we could not enter into that trade while it would be imprudent and profligate to do so.