HL Deb 02 April 1980 vol 407 cc1340-1

2.44 p.m.

Lord HATCH of LUSBY

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 whether they will make a statement on the negotiations they recently undertook with the ministerial delegation from Guinea.

Lord TREFGARNE

My Lords, at the initiative of the Guinea Government a goodwill mission visited the United Kingdom from 19th to 24th March to discuss debts and arrears due under the 1976 Debt Rescheduling Agreement. Two courses of action were proposed and will now be considered by the Guineans. We await their decision.

Lord HATCH of LUSBY

My Lords, I thank the Minister for that statement. Will he accept my congratulations both for his own Government and the Guinea Government in their constructive approach to breaking this impasse? Is the noble Lord aware that during their visit the Minister leading the delegations pointed out that Guinea is rich in bauxite, iron ore, gold, diamonds and uranium, and that this offers an excellent opportunity to British business to collaborate with the Guinea Government in an important, new industrial venture oversees which could help our overseas trading balances?

Lord TREFGARNE

My Lords, we are indeed aware that there are some good prospects in Guinea for British businesses, but the principal difficulty remains, as I think the noble Lord knows, that ECGD cover is not at present available, except for short-term business to Guinea, arising out of the debt arrears to which I referred.

Lord HATCH of LUSBY

My Lords, is the noble Lord also aware that the President of Guinea, M. Sékou Touré has just last month announced a new investment code? Could I ask the noble Lord whether he would ensure that this new code is widely distributed among British businessmen?

Lord TREFGARNE

My Lords, we are aware of the improving climate for British businesses in Guinea. I should have to look at that code before I could undertake to distribute it further.

Lord MERRIVALE

My Lords, in view of what I think is recognised as a definite change of attitude on the part of President Sékou Touré, and the fact, too, that in effect he now has friendly relations with neighbouring States, would the Minister he willing to look into the question of the opening of a mini-Mission in Conakry, bearing in mind that at the moment our Ambassador in Senegal covers six countries, and also bearing in mind the potential for the future of Guinea?

Lord TREFGARNE

My Lords, as I mentioned when the noble Lord, Lord Hatch, raised this matter in December, in view of cuts in overseas representation announced in the Government's expenditure White Paper published last November, we are unable to give further consideration to raising the status of British diplomatic representation in Conakry at the present time. However, in addition, the usual visits to Conakry by our Ambassador and his commercial staff have been stepped up considerably.