HC Deb 29 June 1971 vol 820 cc92-3W
Mr. Stratton Mills

asked the Secretary of State for Foreign and Commonwealth Affairs what is the amount of capital now being made available to Tunisia.

Mr. Wood

During the recent visit to Britain by the Tunisian Foreign Minister, Her Majesty's Government offered to provide a loan of £500,000 as a further instalment of a programme of British capital aid towards the economic development of Tunisia. The loan is to be spent on British goods and services, and will be used to finance agreed development projects. The loan will be repayable over a period of 25 years, including a grace period of seven years, and interest will be at 2 per cent.

At present Tunisia is receiving from Britain an interest-free loan of £246,000 towards the reconstruction of the telecommunications network after the 1969 floods. I expect drawings under this loan to be made before 31st March, 1972.