§ 2.44 p.m.
§ Lord MERRIVALEMy 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—
- (a) what consideration is being given by the Commonwealth Development Corporation to a report (currently in their hands) on the multinational ICS project in Senegal to process the phosphates of Taiba to produce fertilisers; and
- (b) to what extent they are encouraging development assistance and "joint venture" investment in that country.
§ Lord TREFGARNEMy Lords, the Commonwealth Development Corporation is awaiting the appraisal report on this project from the International Finance Corporation in the light of feasibility studies by technical consultants. Capital aid of £1 million was provided in 1979 under the special aid and trade arrangements for the purchase of an HS 748 aeroplane. A small capital project involving assistance to the cashew nut industry is under consideration. In addition, there is a technical co-operation programme covering English language teaching, a few technical experts, and some training awards. Senegal also benefits from European and international aid programmes to which we contributed.
§ Lord MERRIVALEMy Lords, I should like to thank my noble friend the Minister for his detailed Answer. Would he not agree that if the CDC are overcautious it could be counter-productive? Also, would he not agree that Senegal is very keen on closer links with this country, and not just on getting aid but on trade links between Dakar and London?
§ Lord TREFGARNEMy Lords, my noble friend is quite right. There are certainly a good many trade prospects which we hope can be developed between Senegal and the United Kingdom. It is therefore very appropriate that the Senegal Foreign Minister, Mr. Niasse, is in London just now.
§ Lord GORONWY-ROBERTSMy Lords, would the noble Lord agree that it would be a political as well as an economic advantage to Africa and Europe if European investment were stepped up in the next few months and years? Would he also agree that the CDC has a first-class reputation for dealing constructively with countries like this and has a fine record of achievement in such countries, especially in the matter of promoting the joint ventures?
§ Lord TREFGARNEMy Lords, the noble Lord is entirely right about the reputation of the CDC, although I should say that when the CDC starts operations in any new country, it requires ministerial approval, which has not yet been sought in this case.
Lord ORAMMy Lords, since the CDC relies almost entirely on Government loans for financing projects such as that suggested for Senegal by the noble Lord, Lord Merrivale, and the other projects which the Minister listed, can the Minister assure the House that the operations of the CDC in these respects will not be prejudiced by the Government's current policies on overseas aid?
§ Lord TREFGARNEMy Lords, as I said, ministerial approval is required before the CDC can commence operations in any new country. Each application will be considered on its merits.
§ Lord MERRIVALEMy Lords, I was under the impression that the Minister's approval had been given; but, as my noble friend has said that the Minister has not given approval, can my noble friend use his best influence with the Minister under the Commonwealth Development Corporation Act 1978, Section 2(4), to ask the Minister whether he will be kind enough to look into this and give his approval in the not too distant future?
§ Lord TREFGARNEMy Lords, this is a matter for the CDC themselves. When they have received the IFC appraisal report, they will—if they are still persuaded of the merits of this project, as no doubt they will be—make their application for ministerial approval, which we shall then consider in the usual way.