§ LORD BARNBYasked Her Majesty's Government:
In view of the announced intention of the United States of America to reduce materially their overseas aid, what revision of policy they contemplate in regard to the foreshadowed total of some £430 million for the current year; and further, what is their aim as to the proportion which shall be "tied" as against "untied".
EARL FERRERSThe gross amount of official economic aid provided for the present year (1971–72) is £ 245 million and no revision of this is contemplated in the light of the U. S. announcement. Of this amount about £200 million is bilateral aid, and the proportion of this effectively tied to U. K. goods and services (leaving out of account technical assistance, aid for compensation and pensions, refinancing and other compensatory payments) is estimated at about two-thirds. The remaining aid is provided multilaterally and is almost all untied.
§ LORD BARNBYasked Her Majesty's Government:
What is the total current outstanding debt contracted by all countries in the form of "overseas aid" and the amount and proportion of this which, according to initial contractual terms, remains in arrears.
EARL FERRERSThe total of British economic assistance loans to developing countries outstanding on December 31,1970, including undisbursed amounts but excluding Exchequer advances to the Commonwealth Development Corporation, was £885 million. Apart from sums of approximately £1.4 million and £ 0.7 million, due from the Governments of Rhodesia and Pakistan, respectively, there are no arrears of interest or principal repayments in respect of these loans, but rescheduling or refinancing has been agreed in certain cases.
House adjourned at eight minutes before eight o'clock.