HC Deb 18 October 1993 vol 230 c16
38. Mr. John Marshall

To ask the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement about the work of the know-how fund.

The Parliamentary Under-Secretary of State for Foreign and Commonwealth, Affairs (Mr. Mark Lennox-Boyd)

The purpose of the know-how fund is to support economic and political reform in central and eastern Europe, the former Soviet Union and the Baltic states. A list of projects funded under the scheme has been placed in the Library.

Mr. Marshall

Although I thank my hon. Friend for the speed with which the know-how fund makes decisions, does he agree that it is essential for the future development of eastern and central Europe that we should be more willing to trade with such countries? Otherwise, the risk is that some will follow the path of Lithuania and Poland and re-elect a communist Government.

Mr. Lennox-Boyd

My hon. Friend is absolutely right. An improvement in world trade is enormously important to countries throughout the world, including those in central and eastern Europe and the former Soviet Union, but the know-how fund is a terrific success and we must sing its praises. My hon. Friend may be interested to know that President Walesa described the know-how fund in these terms: the British do not say much but they do a lot —not words but action.

Ms Eagle

Will the Minister explain what use it is for countries that have recently experienced political upheaval to be given money and progaganda on the so-called benefits of extreme Thatcherite policies when what they need is help to recover and develop a reasonable political system?

Mr. Lennox-Boyd

In referring to extreme Thatcherite policies, the hon. Lady is referring to policies that are enormously popular in central and eastern Europe and the former Soviet Union. In former Czechoslovakia, for example, the mass voucher privatisation programme has been a terrific technical success as a result of British merchant banks' advice. It was described as the largest and most successful corporate sell-off in the world by the Wall Street Journal. I could give legion examples to the hon. Lady