§ Lord BROCKWAYasked Her Majesty's Government:
On what grounds the British Export Credits Guarantee Department has suspended guarantees for exports to Jamaica.
§ Lord TREFGARNEOn 1st February, 1980, as a result of increasing delays in the remittance of payments from Jamaica and consequent claims payments under its guarantees by ECGD, together with the likelihood of this situation worsening in the light of Jamaica's economic and foreign exchange position, the department, with the agreement of its advisory council (to whom matters affecting its commercial operations are referred) withdrew cover under its commercial (Section 1) account for medium and long-term business. As a result of a further buildup in claims ECGD, again with the agreement of the advisory council, withdrew cover for short-term business—where the credit period does not exceed 180 days—except for such business secured by an irrevocable letter of credit confirmed by a bank in the United Kingdom. The department regrets that Jamaica's current transfer difficulties, arising out of a shortage of foreign exchange, necessitate this restriction of cover. However, the position will be kept under close review with a view to resuming cover as soon as such a course is justified.