HC Deb 22 July 1971 vol 821 cc339-40W
Mr. Bryant Godman Irvine

asked the Secretary of State for Foreign and Commonwealth Affairs what arrangements have been made for payment for defence equipment supplied, and on order, to the Ceylon Government, as a result of the recent insurgency in that country.

Mr. Anthony Royle

The equipment is being supplied on commercial terms. But, in order to ease the burden of payment for the Ceylon Government, Her Majesty's Government are making available to the Ceylon Government a credit of an amount not exceeding £748,000 to cover 90 per cent. of the cost of the equipment and freight charges. Interest will be at the rate of 7⅜ per cent. and the credit will be repayable over a period of 10 years. These arrangements will form the subject of an Exchange of Notes the text of which will be made available in the form of a Command Paper. Parliament will be asked to approve the necessary supplementary estimate in due course. In the meantime an advance will be sought as necessary from the Congincies Fund.