§ Mr. Robert Banks
To ask the Secretary of State for Foreign and Commonwealth Affairs (1) to which projects soft loans in the £50 million aid package to Indonesia announced on 14 June are to be applied;
(2) what is the number of British companies and the types of products which will be supplied to Indonesia as part of the recently announced package of aid;
(3) what is the number of British specialists who will be directly employed in Indonesia as part of the recently announced aid package;
(4) whether the recently announced aid package to Indonesia will result in any greater preservation of the rain forest.
§ Mr. Chris Patten
The £50 million aid package to Indonesia announced on 14 June is the second tranche of a £100 million soft loan facility signed with the Government of Indonesia in December 1988, and means that £185 million worth of soft loans are now available to fund projects in Indonesia. These funds are not allocated at the outset to specific projects, but likely candidates are the subject of feasibility studies and appraisals and then, if both Governments agree, are allocated funds. It is not, therefore, possible at this stage to say which projects will be allocated funds, how many British companies or specialists will benefit or what types of products will be 5W supplied, but we will, of course, be seeking to maximise the benefits to British industry, as well as to Indonesia, of these funds. One of the leading candidates for funding is a forestry radio communications system project aimed at improving the Indonesian Ministry of Forestry's management and control of the rain forests.