§ Mr. Pawseyasked the Secretary of State for Trade and Industry what special support is being provided for the contract between Peugeot Talbot Motor Company and Iran for the sale of car kits.
§ Mr. ChannonFor many years the Export Credits Guarantee Department has been insuring sales to Iran under this contract which is vital to the operation of the Peugeot Talbot plant in Coventry. Exceptionally ECGD has provided cover in advance of the issue of irrevocable letters of credit. My right hon. and learned Friend has decided that ECGD should continue such cover for a further period and for a limited amount to enable the contractors to renegotiate the terms with their buyers in such a way as to speed up the flow of letters of credit.