OECD (Hansard, 14 June 1989)

§ 11. Mr. Knapman
To ask the Secretary of State for Foreign and Commonwealth Affairs what matters were raised at the most recent summit meeting of the Organisation for Economic Co-operation and Development.

§ Mrs. Chalker
The OECD Ministerial Council covered a wide range of subjects, including macroeconomic developments and policies, structural reform, trade and debt. Environmental issues also featured prominently.

§ Mr. Knapman
Does my right hon. Friend agree that Britain is helping Third world countries not only through the quality of its aid programme, but by direct investment in Third world countries and through attempts to open European Community markets to them?

§ Mrs. Chalker
Indeed I can. Britain has led the way, with the initiative by my right hon. Friend the Chancellor on sub-Saharan debt. We have been cancelling aid debt for the poorest countries—almost £1 billion world-wide. We have led the way in converting loans into grants. We have targeted our aid much better than every before. That is an important help for the developing nations.
The other aspect that my hon. Friend mentioned was direct investment in developing countries. Between 1984 and 1987, the United Kingdom's direct investment was greater than that of the whole of the rest of the European Community put together.
Above all, we believe in open trade, world-wide, in giving opportunities to these countries for trade with the European Community and for avoiding fortress Europe.

§ Mr. Pike
Can the Minister assure us that urgent consideration will be given to the need for aid for Namibia following independence, especially recognising the debt that it will inherit, which was incurred by the present non-representative Government?

§ Mrs. Chalker
We are well aware that Namibia will need support and aid further to that which we already give it. We are working hard to ensure, through our representatives with the United Nations force, that the peace plan stays on course, so that free and fair elections will give independence to Namibia in November and we shall be able to work on a further aid programme thereafter.