§ 7. Mr. Sorensen
asked the Secretary of State for Commonwealth Relations 184W what further developments have taken place in respect of giving economic and other assistance to the Indian Government.
§ Mr. Sandys
An agreement for a loan of £3.5 million for the purchase of steel plate and other steel products was signed at Delhi on 9th April. India's needs for further aid will be discussed with the International Bank and other doner Governments at a meeting in Washington at the end of this month.
§ Captain Kerby
asked the Secretary of State for Commonwealth Relations how much has been paid to the Government of India by way of gifts, grants, or loans in the past five years; and whether any provision was made to prevent such British funds being employed by that Government for the purchase of equipment, military or otherwise, from the Communist countries.
§ Mr. Sandys
Out of British Government loans to India since 1958 totalling £175.5 million, £119.5 million has so far been disbursed. An agreement for a further loan of £3.5 million for steel products was signed in Delhi on 9th April. All these loans are tied to the purchase of British goods and services under the provisions of Section 3 of the Export Guarantees Act, 1949.
There have been no gifts or grants of funds to the Government of India in this period, apart from the recent gift of military equipment.