HC Deb 02 April 1990 vol 170 cc889-90
74. Mr. Boyes

To ask the Secretary of State for Foreign and Commonwealth Affairs whether he has given any further consideration to restoring bilateral aid to Vietnam.

The Minister for Overseas Development (Mrs. Lynda Chalker)

I refer the hon. Member to the answer I gave to the hon. Member for Monklands, West (Mr. Clarke) on 12 March.

Mr. Boyes

It is a bit tricky to ask me to refer to something without giving me notice. Is not it a fact that Vietnam has done all that it can to meet the conditions set by the Minister before aid can be resumed? For example, there have been reforms in the economy, including the introduction of market forces and the lifting of some state controls. In those circumstances, how can the Minister justify withholding aid to one of the poorest countries in the world?

Mrs. Chalker

I am sorry that the hon. Gentleman has not caught up with the previous oral Question Time and the debate that we had on the night of 27 March. We believe that Vietnam is seeking to put its economy in order, but it has not yet agreed even a shadow programme with international financial institutions and still has outstanding arrears of more than $133 million to the International Monetary Fund and $6 million to the Asian development bank. As soon as a shadow programme is in place, I hope that we shall be able to continue the work, which we have already begun, on possible aid projects for Vietnam.

Mr. Andrew Mitchell

Is not the resolution of the problem of the Vietnamese boat people closely linked to the need to bring Vietnam back into the community of nations? Will my right hon. Friend make that point when she next visits her opposite number in Washington?

Mrs. Chalker

My hon. Friend is absolutely right. We are awaiting a reply from Foreign Minister Thach of Vietnam to the representations made by my hon. Friend the Minister of State, Foreign and Commonwealth Office. As soon as we hear that the Vietnamese are prepared to take responsibility for their people, who are to return to Vietnam, we shall be in a far better position to continue our efforts. I shall make those points when I visit Washington later this month.

Mrs. Clwyd

Does not the Minister accept that the IMF report commends Vietnam for making every effort to meet its payments? Does not she agree that, despite its policy, it has taken out a commercial bank loan in an attempt to clear its debts? How can she justify Vietnam being the only one of the poorest 50 countries in the world to which Britain gives no aid? If she accepts, as she did in the debate on 27 March, that poverty is acute in that country and assistance needed, why does not she have the courage of her convictions and restore bilateral aid to that desperate country?

Mrs. Chalker

The hon. Lady heard me say in the debate in question that it was an IMF staff report. The report has not yet been accepted by the IMF board. I explained during the debate that there must be a high percentage of agreement. In the meantime, we hope that Vietnam will have a shadow programme, because that will enable us further to consider what we are already doing in terms of aid through non-governmental organisations for Vietnam. All countries that want to receive programme aid are being required by the donor community to have an economic recovery programme; that is what is needed for Vietnam, as well as the resolution of the Vietnamese boat people problem.

Mr. Wells

Does my right hon. Friend agree that there is a case for aid to Vietnam, which overarches the issue of the boat people? It is, after all, one of the poorest countries in the world, and a programme that invited the Vietnamese Government to change the economic framework in which other people were being asked to work would benefit that country and its neighbours very much.

Mrs. Chalker

I am aware of what my hon. Friend says, but certain elements are required by all donors. We have been examining possible routes for aid in preparation, not only on the basis of the NGO suggestions to us three weeks ago, but by looking at the United Nations development programme projects. Later this month when the Mekong committee meets again to discuss the water-sharing agreement for the Mekong basin, a United Kingdom observer will be present, and we shall see whether that will afford a route for assistance in future when a programme is agreed.