HL Deb 08 December 1976 vol 378 cc672-4WA
Lord BARNBY

asked Her Majesty's Government:

With regard to the reported 40 billion dollars indebtedness of the Soviet Union to the Western World, what they estimate to be the proportion of this total owed to the United Kingdom; and at what annual rate is the balance of trade deficit with the United Kingdom now running.

Lord ORAM

There is no consensus about the actual size of East European indebtedness to the West owing to the lack of comprehensive statistics. The reported figure of 40 billion dollars refers to a West German Government estimate for the total gross indebtedness of Eastern Europe, including the USSR, for the end of 1976. This compares with estimates of between 32 billion dollars and 35 billion dollars for the end of 1975 of which the Soviet Union accounted for about one-third. Nearly one-quarter of this total indebtedness represents lending from the United Kingdom. A considerable proportion of the United Kingdom figure includes lending by branches of overseas banks operating in this country. About one-quarter of the lending to Eastern Europe from the United Kingdom goes to the Soviet Union. The Soviet Union has for many years had a favourable balance of trade with the United Kingdom. This amounted to about £200 million in 1975 and to about £365 million in the first ten months of this year.

House adjourned at thirteen minutes past seven o'clock.