HL Deb 04 April 1978 vol 390 cc1-5
Lord BROCKWAY

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 what conclusions were reached at the UNCTAD meeting at Geneva on Third World debts.

Baroness LLEWELYN-DAVIES of HASTOE

My Lords, with permission, and for the convenience of the House, I am publishing in the Official Report the operative paragraphs of the resolution adopted by the Geneva meeting. A significant agreement was reached on two important issues. On aid, we and other developed countries joined in an undertaking to seek to adopt measures to adjust the financial terms of past aid, or other equivalent measures, for some or all poorer and least developed countries. We are now urgently examining how best to follow up this undertaking. Agreement was also reached on four basic concepts in relation to the debt problems of developing countries. Further work in UNCTAD will take account of these.

Following is the text referred to:

"Operative paragraphs of the Resolution adopted by the UNCTAD Trade and Development Board meeting Questions 38 and 43, Monday 20th March 1978. A:

1. Members of the Board considered a number of proposals made by developing and developed market economy countries.

2. The Board recognises that many poorer developing countries, particularly the least developed among them, face serious development problems and in some instances serious debt service difficulties.

3. The Board notes with interest the suggestions made by the Secretary-General of UNCTAD about an adjustment of terms of past bilateral official development assistance (ODA) in order to bring them into line with the currently prevailing softer terms.

4. Developed donor countries will seek to adopt measures for such an adjustment of terms of past bilateral ODA, or other equivalent measures, as a means of improving the net ODA flows in order to enhance the development efforts of those developing countries in the light of internationally agreed objectives and conclusions on aid.

5. Upon undertaking such measures, each developed donor country will determine the distribution and the net flows involved within the context of its own aid policy.

6. In such a way, the net flows of ODA in appropriate forms and on highly concessional terms should be improved for the recipients.

7. The Board recommends that the fifth session of the Conference should review measures taken in pursuance of the above.

B:

1. In accordance with resolution 94(IV), the Board has reviewed the intensive work carried on within UNCTAD and other international fora on the identification of those features of past situations which could provide guidance for future operations relating to debt problems of interesting developing countries.

2. Notes with appreciation the contributions made by the Group of 77 (TD/B/670, Annex II) and by some Group B members (TD/B/L.498).

3. Common to the varying approaches in this work are certain basic concepts which include inter alias

  1. (i) International consideration of the debt problem of a developing country would be initiated only at the specific request of the debtor country concerned.
  2. (ii) Such consideration would take place in an appropriate multilateral framework consisting of the interested parties, and with the help as appropriate of relevant international institutions to ensure timely action, taking into account the nature of the problem which may vary from acute balance-of-payments difficulties requiring immediate action to longer-term situations relating to structural, financial and transfer of resources problems requiring appro- priate longer-term measures.
  3. (iii) International action, once agreed by the interested parties, would take due account of the country's economic and financial situation and performance, and of its development prospects and capabilities and of external factors, and bearing in mind internationally agreed objectives for the development of developing countries.
  4. (iv) Debt reorganisation would protect the interests of both debtors and creditors equitably in the context of international economic co-operation.

4. The Board requests the Secretary-General of UNCTAD to convene a meeting of an Intergovernmental Group of Experts to recommend to the tenth special session of the Board prior to the fifth session of the Conference detailed features for future operations relating to debt problems of interested developing countries taking into account the above-mentioned concepts and in the light of proposals made on this issue."

Lord BROCKWAY

My Lords, while thanking the Minister, may I ask whether she would not agree that, on the whole, this conference, by its results, was a failure and followed failures by other conferences? Considering the contribution which Third World countries have made to this country for two centuries in cheap foods and cheap raw materials, and considering that a lifting of their standard of life would mean new markets and the easing of unemployment in this country, cannot our Government follow the example of Canada, Sweden, the Netherlands and Switzerland in cancelling the debts of the poorest countries and in easing those of others?

Baroness LLEWELYN-DAVIES of HASTOE

My Lords, I am afraid I cannot agree with my noble friend's belief that this conference was a failure. Indeed, 1 think it is generally agreed that it was a distinct and most useful advance in the relations between the North and the South. That was agreed by the developing countries as well as by the developed ones. With regard to Sweden, Switzerland and Canada, of course we have taken note of their action in cancelling debts, and the precise way in which we shall implement our undertakings will, I hope, emerge from discussions in the next few weeks. But each country has agreed to implement these things in the best way that it can.

Baroness ELLES

My Lords, would not the Minister agree that the United Kingdom, along with other European Community countries, has already done an enormous amount to help Third World countries through the European Development Fund and through the Lome Convention? Is not this a more practical way of helping these countries?

Baroness LLEWELYN-DAVIES of HASTOE

My Lords, I entirely agree that we have done a great deal and not always with encouragement from everywhere else.

Lord PAGET of NORTHAMPTON

My Lords, could the noble Baroness tell us whether Her Majesty's Government have any inhibitions about lending taxpayers' money for bad risks?

Baroness LLEWELYN-DAVIES of HASTOE

My Lords, Her Majesty's Government have far more inhibitions than my noble friend.

Lord BROCKWAY

My Lords, in considering practical ways of dealing with this problem, is not the solution to incorporate the debt problem with a much more comprehensive trade agreement, which would replace the International Monetary Fund by a world central bank, and to pass the distribution of oil and other surpluses to the recognised international agencies?

Baroness LLEWELYN-DAVIES of HASTOE

My Lords, as usual, my noble friend very much takes a global approach to these matters, but I must emphasise that I feel that the way we are doing it, case by case where it is appropriate, is a more practical way. In any case, our aid policy is more for the poorest countries and for the poorest people in them.

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