HC Deb 09 March 1953 vol 512 cc90-1W
Mr. Ernest Davies

asked the Secretary of State for Foreign Affairs if he will make a statement on the recent discussions with the financial delegation from Jordan.

Mr. Nutting

The discussions have now ended with results which we believe, will be of mutual benefit to Her Majesty's Government and to our friends and allies in Jordan. Subject to the approval of Parliament for the provision of the necessary funds (which will amount for 1953–54 to £1,250,000 to be requested in a Supplementary Estimate during the summer of this year), Her Majesty's Government in the United Kingdom have offered to co-operate with Jordan in a five-year plan of economic development beginning on 1st April, 1953. The plan is to be worked out immediately by the Jordan Government and discussed with Her Majesty's Government in November next.

Taking into account the assistance which Jordan may expect to receive from the United States, Point IV programme, and from the United Nations Relief and Works Administration for Palestine Refugees, Her Majesty's Government hope that the effect of the plan will be a decisive improvement in Jordan's economy, and that at the end of the period Jordan will be able to balance her Budget without assistance. It has however become clear to the Jordan Government that a balanced Budget cannot be achieved for some time and they have, therefore, also asked Her Majesty's Government for assistance for this purpose. Her Majesty's Government have therefore agreed that a part of the total provision of £1,250,000 shall be devoted to this end.

Of this sum, it is proposed to make available £500,000 as an interest-free loan towards the cost of the agreed development programme, which for 1953–54 amounts to £1,471,000. The remainder of this expenditure will be met by using the unexpended balance of the £1,500,000 loan which was previously provided by Her Majesty's Government. The remaining £750,000 of the amount now proposed will be a grant to the Jordan Government in aid of their Budget for the year 1953–54 and will form part of the assistance afforded them under the Anglo-Jordan Treaty of Alliance.

The opportunity was taken of the presence of the Jordan Financial Delegation to discuss with them Jordan's balance of payments as a member of the sterling area in 1953. Arrangements have been made for meeting Jordan's requirements of hard currency from sterling area resources of such currency during the year.