HL Deb 25 May 1977 vol 383 cc1283-4

2.48 p.m.

Lord INGLEWOOD

My 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 how much of the £15 million loan to Mozambique has been advanced, to what uses the money is being put and what are the terms of repayment.

Baroness LLEWELYN-DAVIES of HASTOE

My Lords, a £5 million loan agreement was signed with the Mozambique Government last August. Almost all of this has now been committed for the purchase of British goods. The agreement for the balance of £10 million, to finance specific development projects, has not yet been finalised. Both loans will be repaid over 25 years. They are interest free, and will have a seven years' grace period on repayment of principal.

Lord INGLEWOOD

My Lords, I thank the noble Baroness for that reply, but may I ask her to bear in mind that the Mozambique Government are still encouraging guerrilla activities around their borders? Would she not agree that it is a very bad time when the Police Federation here is meeting in a militant mood (something that most of us here deplore) for the Government not to make it abundantly clear that they are against subsidising guerrilla activities—albeit indirectly—rather than being on the side of law and order?

Baroness LLEWELYN-DAVIES of HASTOE

My Lords, the Government have made it abundantly clear that they do not and have not supported guerrilla activities. Every penny of the loan has been agreed by the Government of Mozambique as well as our own Government to be for peaceful purposes. For each order, there is an end certificate of use. I have said that often enough in this House for noble Lords in all parts of the House to accept it.

Lord SUDELEY

My Lords, may I ask the Minister whether she considers that Mozambique, the recipient of the loan mentioned in the Question, is or is not a Communist country? I understand that that has been a matter of dispute in the Foreign Office for some time.

Baroness LLEWELYN-DAVIES of HASTOE

My Lords, I am not aware that it is a Communist country. I think that it has Marxist leanings, but Her Majesty's Governments, whatever their complexion, have always made it a rule to give aid to the poorest people and those who are in the greatest need. They have not used the political character of the nation in question as one of the main considerations.

Lord BROCKWAY

My Lords, will the Minister dissociate herself from the suggestion that the police in this country have any association with, or intention of taking part in, guerrilla activity?

Baroness LLEWELYN-DAVIES of HASTOE

I am so sorry, my Lords; I had not grasped that implication. Of course I endorse what my noble friend says.

Lord BARNBY

My Lords, last year the noble Baroness gave the assurance that the Government would make sure that the funds which were provided in this way went for the purpose for which they were intended. Arising out of that reply, is it to be understood, since we now have full diplomatic representation in Mozambique, that the Government are satisfied, through their representatives, that the necessary accounts for making sure of the manner in which the money is spent do now exist and are open to the inspection, as she said, of our representatives?

Baroness LLEWELYN-DAVIES of HASTOE

Yes, my Lords.

Lord LOVAT

My Lords, can the noble Baroness say how much of the money is supposed to have gone into Swiss banks?

Baroness LLEWELYN-DAVIES of HASTOE

I have no knowledge of that, my Lords, but I regard it as a slightly unworthy suggestion.