HC Deb 30 July 1964 vol 699 cc403-4W
Mr. Clive Bossom

asked the Secretary of State for Foreign Affairs what financial contribution Her Majesty's Government are making to Iran to assist in the Iranian Third Five-year Development Plan.

Mr. Mathew

It was announced on 8th October 1963, that Her Majesty's Government had offered to the Iranian Government, as an initial British contribution to the Third Five Year Development Plan of Iran, a long-term loan of £ 2 million for the financing of selected projects. Her Majesty's Government expressed the hope at that time that their contributions in subsequent years during the term of the Plan would be on a similar scale.

Negotiations on the terms of the loan have now been completed and, as the second year of the Plan began on 21st March 1964, it has been decided to combine the British contributions for the first two years into one single loan of £ 4 million. The loan will be of twenty years duration, and no capital repayments will be required during the first five years. Interest is to be at a rate of 6 per cent. and the loan is to be borne on the Foreign Grants and Loans Vote. Signature of the Agreement is expected to take place shortly in Tehran. Parliament will be asked in due course to vote any amounts required in the current financial year by means of a Supplementary Estimate, and advances will be obtained from the Civil Contingencies Fund if necessary.