§ Mr. Jacques Arnold
To ask the Secretary of State for Foreign and Commonwealth Affairs whether the Government have any plans for additional overseas aid.
§ Mrs. Chalker
Yes. At the Zambia consultative group on 9 to 11 April we intend to pledge a new grant of £30 million. It is to be spent on essential imports required to implement the economic reform programme for 1990 that Zambia has agreed with the International Monetary Fund. We are also offering to reschedule some £12.85 million of repayments, including accumulated arrears, due to Britain in 1990–91 on past aid loans to Zambia. These new measures are additional to our technical co-operation programme, worth some £14 million last year. In addition, the external financing limit for the Commonwealth Development Corporation will be increased by £25 million from £28 million to £53 million. The increase will enable the corporation to continue assisting the economies of developing countries, in particular in the private sector. These increases in aid will be met in part by a charge to the reserve of £30 million; the remainder will come from the existing overseas aid programme.