Poland and Hungary (Hansard, 29 November 1989)

§ 5. Miss Emma Nicholson
To ask the Secretary of State for Foreign and Commonwealth Affairs, what progress Her Majesty's Government are making in setting up a know-how fund for Poland; and if he will make a statement.

§ 8. Mr. Butterfill
To ask the Secretary of State for Foreign and Commonwealth Affairs what assistance is being given to Poland and Hungary in their efforts to establish parliamentary democracy.

§ Mr. Hurd
We established a know-how fund for Poland after General Jaruzelski's visit to Britain in June. This will contribute £25 million over the next five years towards projects that will underpin Polish democracy and help economic reform. I am glad to announce that it will now be doubled in size to £50 million. Moreover, we shall be making a contribution of $100 million to a stabilisation fund set up in support of the agreement being discussed 702 between the International Monetary Fund and the Polish Government. Finally, we shall be spending £15 million on a major project to improve the Polish food supply.
A know-how fund will provide British expertise for Hungary, amounting to £25 million over five years, and will operate from next year.

§ Miss Nicholson
In my work with the Save the Children Fund, I grew to learn of the value of a cash donation and immediate aid. I draw my right hon. Friend's attention to the fact that credits given by other nations, although they may sound large numerically, mean little in terms of cash as they have to be repaid and cannot immediately be used. Will my right hon. Friend pass on this place's warm tribute to Mr. Lech Walesa during his visit to London and say how glad we all are that Her Majesty's Government are helping his country to come out of a long darkness into the light of democracy?

§ Mr. Hurd
I shall certainly pass on my hon. Friend's message to Mr. Lech Walesa. She is right in her earlier point. Food supplies are crucial, and we contribute to the European Community's supply of free food to Poland. She is also right that this is one of the many occasions when those who give quickly, give twice. This is what we are doing—[Interruption.]

§ Mr. Speaker
Order. There is some backchat this afternoon. I hope that hon. Members will listen to these important questions.

§ Mr. Butterfill
I join my hon. Friend the Member for Torridge and Devon, West (Miss Nicholson) in congratulating my right hon. Friend on an imaginative package. I reinforce her view that to give cash at this time is doubly important. When Poland is so heavily burdened with debt, it would be wrong to offer loans, and I congratulate the Government on offering cash. It is especially pleasant that it is being made available when Lech Walesa is starting his visit. In what sectors will cash be available? Will it be available for the financial advice that is so urgently needed?

§ Mr. Hurd
The know-how fund, which is already being spent, has moved into action quickly. It is designed for projects, which are being examined, to underpin the creation of Polish democracy. That goes fairly wide, and we are willing to consider all suggestions for sensible projects that come under this general heading.
I mentioned the cash, but I should also mention the trade package that has been agreed in two Council meetings in Brussels which will substantially improve the possibility of Poland earning her own living. We have done our best—rather successfully—to make sure that any burden that may fall on the Twelve as a result will be evenly spread across the members of the Community.

§ Mr. John Evans
Will the Foreign Secretary give an undertaking that, whatever discussions he has with the Polish and Hungarian authorities about democracy in those countries, he will not discuss trade unionism with them because he is liable to be told that in those countries trade unions are freer to take action on industrial affairs than they are in Great Britain?

§ Mr. Hurd
I should be amazed to be told anything, of the kind. In Poland and Hungary, people are looking to the free institutions of the West in respect of social as well as economic legislation.

Mr. John D. Taylor
Will the Foreign Secretary consider giving some financial assistance to encourage younger people in Hungary and Poland to visit the United Kingdom to see how parliamentary institutions work and to make contact with the youth movements of our political parties?

§ Mr. Hurd
Polish visitors have been coming here already with that aim in mind, and I shall consider any sensible and realistic proposals to that end. That will be part of the underpinning of new democracy in those countries.

§ Mr. Soames
Will my right hon. Friend pay tribute to the work of the Great Britain/East European Centre under its distinguished chairman, Mr. Alan Brooke Turner? Given the great importance of these matters, will my right hon. Friend see what he can do to increase the grant that the Home Office generously gives to that excellent organisation?

§ Mr. Hurd
I shall consider my hon. Friend's suggestion without making any promise to him.

§ Mr. Hardy
The Foreign Secretary will be aware that one of Poland's great problems is environmental pollution. As the Polish economy recovers, as we hope that it will, that problem may get worse before it gets better. Will the right hon. Gentleman consider joining Sweden and certain other member states of the Council of Europe which are giving direct assistance to Poland to try to counter the graver features of these problems?

§ Mr. Hurd
The new Polish Government are struggling valiantly with a range of problems, and I am sure that environmental pollution is one of them. I am not dismissing the importance of what the hon. Gentleman has said, but there must be priorities and the importance of getting free institutions started and enabling the Poles to get through what may be a rough, hard winter are the two matters to which we are putting our minds, as the package that I have announced shows.