§ 28. Mr. John MarshallTo ask the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement about the work of the know-how fund in central Europe. [15547]
§ Dr. Liam FoxThe know-how fund contributes to economic and political reform in central Europe. Its work is described in the annual report for the financial year 1995–96, which was published on 15 July 1996. A copy has been placed in the Libraries of both Houses.
§ Mr. MarshallMy right hon. Friend will accept that the know-how fund has been a great success, but does he 14 agree that its success can be only a prelude to the expansion of NATO to include countries such as Poland, the Czech lands and Hungary and of the European Union so that those countries can be part of the free Europe instead of the communist Europe that was meant to bury the NATO Europe?
§ Dr. FoxThe aim of the know-how fund is to support transition to a pluralist democracy and a market economy. It is of great practical assistance in giving countries the necessary expertise to move to a market system, but having encouraged them to move away from communism and promised them a place in the western family of nations, we have a moral duty to ensure that those reforms are implemented in the best possible way. The know-how fund has been spectacularly successful in doing that.
§ Mr. PikeWhat discussion have the Government had with the new Government in Romania to discuss what additional help can be given from the know-how fund and in other ways to help that country's transition to a new economy and to democracy?
§ Dr. FoxI cannot give details of any discussions between ourselves and the Government of Romania, but we look at all the countries in the former eastern Europe to see what structural help we can offer with, for example, improvements to the stock market, the functioning of the banks and so on. Each country is looked at individually to see what market reforms most suit it, and there is a different model for each country because all countries have different needs and have experienced differing degrees of repression from the former Soviet Union.
§ Mr. RathboneWill my right hon. Friend give special attention to the application of additional know-how energy and funding to Bulgaria, where the liberalisation of the Government has been turned backwards? The clock has been turned back and the communists have taken over. It is only now beginning again the struggle to establish democratic practice properly.
§ Dr. FoxMy hon. Friend makes a very important point about assistance to Bulgaria. We are worried about potential economic collapse in Bulgaria and have contributed to the relief effort. With the European Commission, our bilateral donations for food, clothing and soup kitchens have given 20 mecu for income support. It is a very worrying situation, which the Government are monitoring closely.