§ Lord Brockwayasked Her Majesty's Government:
Whether they will request the Commonwealth Development Corporation to reconsider plans to invest funds borrowed from the United Kingdom Government in an oil palm plantation in the Philippines in which Guthrie Overseas Holdings are partners, in view of the claim by the Catholic Institute for International Relations that the company employs a terrorist organisation as its security force.
§ The Minister of State, Foreign and Commonwealth Office (Lord Belstead)No. The Minister for Overseas Development announced in January his approval of a1634WA loan of £6.4 million by the Commonwealth Development Corporation for this project. As was explained in another place on 19th January, the loan is subject to a number of contractual undertakings being given by the National Development Company of the Philippines and the borrower, which include the provision by the National Development Company of a new security force for the estate to replace the existing force. It is now being trained and is due to be available by the end of June 1983 at the latest. It will form part of a new security service which is being set up by the National Development Company to serve all its subsidiary companies, and it will be responsible for the protection of the estate's employees and its property and assets. CDC will have the right to withhold loan disbursements after 30th June 1983 if these provisions are not observed to its satisfaction and while any part of the loan remains undisbursed.