§ Mr. W. Clarkasked the Secretary of State for Foreign Affairs what action Her Majesty's Government will take following the request of the Brazilian Government for financial assistance.
§ Mr. MathewHer Majesty's Government have agreed, subject to the approval of Parliament, to co-operate with other European creditor countries, Japan and the United States of America, in giving to the Brazilian Government assistance designed to reduce the burden of Brazil's external debts. It has been agreed in principle that, having regard to the present financial situation in Brazil and the Brazilian Government's programme for economic recovery, the countries concerned should give assistance in 1964 and 1965. This assistance will amount to 70 per cent. of certain debts falling due during those years on account of commercial suppliers' medium-term credits. The probable amount of assistance to be provided by the United Kingdom calculated on the basis of such figures as are available, is about £4 million. This will be advanced over the next year and a half. The exact terms of the agreement are to be the subject of bilateral negotiations between Brazil and the United Kingdom. Parliament will in due course be asked to vote the amount required in the current financial year by means of a Supplementary Estimate.