§ 32. Sir Anthony Royle
asked the Minister of Overseas Development if he will detail the loans granted to Mozambique during the past 12 months; and if he will list the uses to which these funds are to be put and in particular whether they may be used to provide arms, equipment or assistance which could further terrorist activity in Southern Africa.
§ Mr. Prentice
Although some preliminary discussions were held with the Provisional Government of Mozambique before independence it was not appropriate to negotiate financial assistance before the formal transfer of power, and no aid agreement has yet been made. I hope that when an agreement is concluded the aid will be used initially for the purchase of goods and services from this country and for rural development projects in Mozambique. As my right hon. Friend the Prime Minister informed the House on 13th May, we are not prepared in any circumstances to provide either arms or money for guerrilla activities.