§ Mr. Dalyellasked the Prime Minister, pursuant to her reply, Official Report, 14 December, c.77, whether any Argentine infantry training is known to be taking place in Southern Patagonia.
§ The Prime MinisterAppreciations of this kind are confidential.
§ Mr. Dalyellasked the Prime Minister, pursuant to her reply, Official Report, 14 December, c.77, for what purposes Her Majesty's Government consider that the Argentines are enhancing their military capability.
§ The Prime MinisterTo rebuild the confidence and capacity of its armed forces after their defeat in the Falklands.
§ Mr. Dalyellasked the Prime Minister whether, pursuant to her answer of 23 November, Official Report, c. 704, that Her Majesty's Government expected the United States of America to support the United Kingdom as a country standing for the same democratic principles and self-determination, she will ask the President of the United States to consult Her Majesty's Government before making any further public statement urging negotiations with Argentina, in view of the latter country's not yet having ended a formal state of hostilities against the United Kingdom.
§ The Prime MinisterI have nothing to add to the replies I gave to the hon. Member on 16 December [Vol. 34, c.200.]
§ Mr. Bendallasked the Prime Minister if she will introduce legislation to prevent any British bank lending money to Argentina if it appears to Her Majesty's Government that the money may be used for, or diverted to, arms purchases; and if she will make a statement.
§ The Prime MinisterWe are not proposing in present circumstances to take powers to reintroduce financial restrictions between the United Kingdom and Argentina. The International Monetary Fund has been negotiating with Argentina an economic programme to accompany access to drawings on the fund's facilities. In parallel, with the support of the IMF, negotiations have been taking place on two loans to be provided by a group of international banks, including British banks. One of these is a bridging loan; the other is a medium-term loan which is conditional on approval of an IMF standby agreement.
These loans are not for arms purchase, but are to help Argentina to continue paying its debts, many of which are to residents of this country. We support the IMF in its efforts to maintain the stability of the international financial system.