§ 3.15 p.m.
§ 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 was the attitude of the United Kingdom delegate to the decision of the International Monetary Fund to grant a loan of 464 million dollars to the Government of the Republic of South Africa during 1976 and 1977.
§ The MINISTER of STATE, DEPARTMENT of EDUCATION and SCIENCE (Lord Donaldson of Kingsbridge)My Lords, the United Kingdom director on 1156 the executive board of the International Monetary Fund supported the board's decisions to allow South Africa to draw from the fund. South Africa fulfilled all the conditions for eligibility to draw under fund rules. There were no grounds to oppose the drawings to which South Africa was entitled.
§ Lord BROCKWAYMy Lords, is it not the case that there were a large number of reservations—22 in number—including West Germany? Is it not a fact that the IMF itself says that the need for this aid arose from increased defence expenditure by the republic? In 1976 there was a 40 per cent. increase, as against 6 per cent. for civil purposes. In 1977 there was an increase of 21.3 per cent. as against 5.1 per cent. for civil purposes. Is it not illogical to refuse arms to South Africa while we are providing money for them to create their own arms?
§ Lord DONALDSON of KINGS-BRIDGEMy Lords, without disputing the facts which the noble Lord has listed to the House, I should like to make it clear that it is a long-standing and important tradition in the fund that access to its resources is not swayed by political considerations. The IMF and its sister institution, the World Bank, have functioned perhaps best of all the international institutions created in the aftermath of the last war. This is in large measure due to to the non-political nature of their discussions.
§ Lord BROCKWAYMy Lords, is it not the case that this loan to the Republic of South Africa was more than was granted to the whole of the rest of Africa? Should we be supporting a measure of this kind, which is consolidating the system of apartheid in South Africa?
§ Lord DONALDSON of KINGS-BRIDGEMy Lords, I have not the statistics as to the size of the loan in relation to other amounts granted to African nations. The IMF has absolutely clear standards as to how much it can give, and for what purpose, and these standards are not influenced in any way by political considerations. Her Majesty's Government have never shown the slightest hesitation in their opposition to apartheid. 1157 I should like noble Lords to agree that this has absolutely nothing to do with the matter of the loan.