§ Mr. Temple
asked the Secretary of State for Foreign and Commonwealth Affairs what further assistance he is considering to the Inter-American Development Bank.
§ Mr. Wood
Her Majesty's Government entered into an agreement with the Bank to establish a further Trust Fund, called "The United Kingdom Development Fund for Latin America", which will be financed in the first instance by a loan of £2 million. The terms on which these funds will be made available will be 25 years' amortization, four years' grace and 3 per cent. interest. Loans from the fund may be used for payments for goods and services originating in the United Kingdom or in such other countries as are members of, or significant contributors to, the Bank. The Inter-American Development Bank will propose projects for the use of the funds; Her Majesty's362W Government retain the right to reject any project they consider unsuitable.
A supplementary estimate in respect of the first tranche of £2 million will be presented to Parliament in due course. Any necessary disbursements from the loan will meanwhile be financed by advances from the Contingency Fund.