§ 75. Mr. Dodds-Parker
asked the Secretary of State for Foreign Affairs what agreement has been reached with the Government of South Yemen for future financial support.
§ Mr. William Rodgers
In accordance with the Memorandum of Agreed Points signed in Geneva on 29th November, negotiations between a United Kingdom and a Southern Yemen delegation started in Aden on 20th April. The matters for negotiation were aid after 31st May, and various financial and other questions, such as debts and nationality, which had been left at Geneva till these further negotiations.
During the negotiations the Southern Yemen delegation claimed £60 million over three years as an obligation to which Her Majesty's Government were committed. We made it clear that there was no obligation, and offered some £1.8 million as civil budgetary assistance for the remainder of this financial year. The Southern Yemen delegation finally informed our delegation on 10th May that they rejected our offer. The other matters were discussed but no fresh agreement on them could in these circumstances be concluded.183W
Her Majesty's Government consider that they have now discharged their obligation to hold further discussions on aid under the terms of the Geneva Memorandum. Despite the failure of these talks we naturally hope that we shall continue normal relations with Southern Yemen.