HC Deb 30 March 1976 vol 908 cc468-9W
Mr. Biggs-Davison

asked the Minister for Overseas Development what European aid has been given, and is to be given, to Portugal; and what is the United Kingdom contribution.

Mr. Prentice

In October 1975, EEC Foreign Ministers agreed to the provision of exceptional aid to Portugal and asked the European Investment Bank to make available 150 million units of account in the form of loans for investment projects. The EIB and the Portuguese Government are now discussing the utilisation of this money.

There will be a 3 per cent. interest rate rebate on the EIB loans. The cost of the rebate will be met by the nine Community member States, and the United Kingdom contribution will be some £2.3 million.

In January, Foreign Ministers agreed that in addition to the exceptional financial aid there should be a Financial Protocol to the EEC/Portugal Trade Agreement. Details have yet to be discussed and it is impossible to assess the cost to the United Kingdom.