§ LORD BROCKWAYMy Lords, I beg leave to ask the Question which stands in my name on the Order Paper.
§ The Question was as follows:
§ To ask Her Majesty's Government what proposals will be made by the British representatives at the forthcoming meeting of the Indian Aid Consortium in response to the appeal of the World Bank.
§ BARONESS LLEWELYN-DAVIES OF HASTOEMy Lords, the World Bank is now updating the staff study to which my noble friend refers, so there will be preliminary discussion of it at an informal Working Party of the Aid India Consortium in a few days' time. In the light of that discussion we shall decide what pledge of aid to make at the regular Consortium meeting in June. In the meantime, we have offered a £10 million maintenance loan to India. This is on top of our 1973 pledge and was signed on March 27.
§ LORD BROCKWAYMy Lords, while greatly welcoming that reply, may I ask the Minister this question? Would the British representative on the Consortium propose, in co-operation with the American and European approaches to the Arab Governments, that they should make more generous contributions towards India and the Third World in view of the fact that their poverty is aggravated by the oil shortage?
§ BARONESS LLEWELYN-DAVIES OF HASTOEMy Lords, I think that the 910 whole world will hope that the oil-producing countries, who are themselves developing countries, will view with sympathy the needs of the rest of the Third World. There can be no doubt that it is not simply the petroleum itself that is important; things like fertilisers are almost as vital to India in tackling her problems. I am quite sure that Her Majesty's Government will view with sympathy anything India herself may do, and that anything they can do, through the Consortium, to make the situation better they will do.
LORD HAWKEMy Lords, will Her Majesty's Government point out to the Indian Government that in order to give them any help or aid at the moment we are having to borrow abroad to provide the money?
§ BARONESS LLEWELYN-DAVIES OF HASTOEYes, my Lords.
§ LORD BROCKWAYMy Lords, is it not the case that this new grant of £10 million is dependent upon India's buying materials from this country; and therefore will not this country benefit, as well as India?
§ BARONESS LLEWELYN-DAVIES OF HASTOEMy Lords, as my noble friend knows, a great many of our loans are what are called "soft-term" loans. We shall hope to continue this kind of loan, which is not geared to buying particular things from this country.
LORD INGLEWOODMy Lords, may I ask the Minister whether she could explain some of these terms? In her last reply she used a very curious term. What is a "maintenance loan" intended specifically to do? I do not want to be tiresome, but this jargon is rather difficult.
§ BARONESS LLEWELYN-DAVIES OF HASTOEMy Lords, I should think it would be to maintain the economy of India.
§ LORD WYNNE-JONESMy Lords, are Her Majesty's Government prepared to take steps to ensure that an adequate supply of nitrogenous fertilisers can be made available, since, at the present time there seems to be shortage of them?
§ BARONESS LLEWELYN-DAVIES OF HASTOEMy Lords, the whole position of fertilisers throughout the world, as my noble friend knows, is extremely difficult. Without notice I could not speak about nitrogenous fertilisers specifically, but we are aware of the great danger, particularly to India, of the lack of fertilisers.
§ LORD GORE-BOOTHMy Lords, is the noble Baroness aware that this country has a very good tradition of stepping in with aid to India where there is a state of crisis, and that this offer will be greatly welcomed?
§ BARONESS LLEWELYN-DAVIES OF HASTOEMy Lords, I thank the noble Lord.