§ Major Legge-Bourkeasked the Secretary of State for Foreign Affairs to make a statement on the Anglo-Jordan financial negotiations held recently in London.
§ Mr. NuttingDuring the recent talks, the two delegations examined the detailed five-year plan of economic development in Jordan, which the Jordan Government118W had prepared as agreed at the negotiations between the two Governments last February. In the light of this examination and of further studies of Jordan's economic problems, Her Majesty's Government have reaffirmed their intention of cooperating to the fullest extent practicable with our friend and ally Jordan in her efforts to achieve an improvement in her economy, and so to contribute to the mutual benefit of both countries.
To this end Her Majesty's Government have offered, subject to the approval of Parliament, to provide Jordan in 1954–55 with funds totalling £2,350,000. Of this sum, up to £750,000 is to be a grant devoted, as in the current year, towards meeting the expected deficit in Jordan's budget for next year. The actual amount provided will depend on a more precise assessment of need which will only be possible when firm budgetary figures are available. The remaining £1,600,000 is to be an interest-free loan which, it has been agreed, will be expended in 1954–55 on certain specified projects under the five-year plan. Her Majesty's Government have not excluded the possibility of seeking Parliamentary sanction to make some additional financial provision in 1954–55 for other projects within the plan, when further information about them has been supplied by the Jordan Government.
The opportunity was also taken of discussing Jordan's 1954 balance of payments as a member of the sterling area. Arrangements were decided upon for supplying Jordan's requirements of dollars from the resources of the sterling area during the year.