§ Mr. McElhone
asked the Lord Privy Seal, having regard to the rates of interest charged by the International Monetary Fund oil facility, if he will initiate discussions with the Organisation of Petroleum Exporting Countries with a view to obtaining a more meaningful method of reducing the harsh effects of the increased oil prices on Third world countries.
§ Mr. Hurd
The final drawings of the International Monetary Fund oil facility were made in May 1976. With the benefit of the special 1975 oil facility subsidy, interest rates for the most seriously affected developing countries are very favourable. Western leaders made clear at the Tokyo summit that they recognised that the recent oil price rises would severely increase the problems facing developing countries without oil resources as well as the difficulties for developed countries in helping them. They recognised that, in this situation, there was a need for the flow of financial resources to the developing countries to increase, including private and public, bilateral and multilateral resources. They also expressed readiness to examine with oil exporting countries how to define supply and demand prospects on the world oil market.