HC Deb 05 July 2000 vol 353 cc317-8
4. Mr. Norman Baker (Lewes)

What her policy is in respect of the China western poverty reduction project. [127740]

The Secretary of State for International Development (Clare Short)

Britain supported the China western poverty reduction project at the World Bank board meeting in June 1999 because it is designed to bring significant benefits to 1.7 million of the poorest people in China. The hons. Gentleman will know that there was a campaign against the project. We therefore scrutinised it carefully and were convinced that, basically, it was beneficial. We also supported the board's conclusion that no funds should be disbursed on the Qinghai component of the project until an independent inspection panel had conducted an investigation, and it had been subject to further environmental and social assessments.

The report by the independent inspection panel, and the bank management's response to it, will be discussed at a World Bank board meeting on 6 July.

Mr. Baker

I am interested to know what the Secretary of State's position will be on 6 July—that is a key question. Is the Secretary of State aware that the World Bank inspection panel found seven major violations of World Bank policy in that particular project, including a lack of proper consultation, inadequate environmental assessment and a climate of fear in the area in question? With even the US opposed to the project, will she consider the matter carefully and conclude that it is not in the UK Government's interest, and certainly not in the Tibetan interest, to support this project?

Clare Short

We have not yet decided exactly what position we will take at the board meeting. There will be a discussion but not a final decision on 6 July. We are trying to maintain the project and benefits to some of the poorest people in China, some of whom have an annual income of only £23 a year. They live in remote villages for and represent four different ethnic minorities. We want to preserve a good project, but make sure that there is proper protection. We agree with a lot of criticisms in the panel report and, indeed, expressed some of those criticisms at the last meeting. We want to secure all those provisions, but also the project—that is our intention.

Mr. George Stevenson (Stoke-on-Trent, South)

Does my right hon. Friend accept that many in the House welcome the Government's priority on the alleviation of poverty? Does she also accept that, no matter how desirable and well intentioned they are, schemes must comply with the regulations laid down by the World Bank? Given that the independent panel review found that seven out of l0 of the World Bank regulations have been violated, will my right hon. Friend make it as clear as possible that until the Government are satisfied that all those regulations have been complied with, they will not support the scheme?

Clare Short

I am very well aware that people are concerned about the situation in Tibet. I share the concern of those who have opposed this project from the start. My duty is to try to use UK influence to protect the interests of very poor people in China and make sure that that the project is good, but not to be swayed by a strong international campaign. I promise the House that I shall try to do that.

Mr. Tim Loughton (East Worthing and Shoreham)

It is very alarming that the Secretary of State will not have made a decision when the meeting takes place tomorrow. Why, when the vote was taken, was it not supported by the United States, Canada, France and Australia, although Britain was for it? When will we see some vestiges of an ethical policy in our dealings with China in a policy that purely legitimises Chinese population transfer and all its obscene implications? The Government are kowtowing to the Chinese again. When will they stop?

Clare Short

The hon. Gentleman is deeply misinformed. China is opening up to the world. Its decision to join the World Trade Organisation is of crucial importance to humanity and the people of China, and will ensure that there is less oppression in China. China's record in reducing poverty in recent years has been very good, but in the most remote and the western parts of the country some of the poorest people live in some of the most inaccessible places. They have human rights to development, to education and to a decent livelihood. We will do all in our power to ensure that all human rights, including those of the poor, are protected everywhere, and that is what we are doing in China.

Mr. Ben Chapman (Wirral, South)

Does my right hon. Friend agree that a principal thrust of the DFID's programme in China thus far has been the development of judicial and civic structures to aid social development and, in particular, the development of human rights? Against that background, is it not right that when the Chinese have decided to switch their attention from the coastal provinces to the poorer inland provinces, we should do our part to assist that project, provided that we can get the assurances that we seek?

Clare Short

My hon. Friend is right. We have been conducting judicial training, and helping not only in state enterprise reform but with access to education, health care and water in remote provinces with some of the poorest ethnic minorities. I am sure that the House would agree that that is the right thing to do.