§ Mr. Dalyellasked the Prime Minister whether she has had a response from the Argentine Government to her statement on Wednesday 4 January on Independent Televison news on the Falkland Islands.
§ The Prime MinisterMembers of the Argentine Government have commented to the press on the interview, but I am not aware of any formal statement about it.
§ Mr. Stuart Hollandasked the Prime Minister why it was decided to expedite the delivery of prefabricated houses to the Falkland Islands; when the Government were informed of the cost overrun on their provision and delays in delivery and erection; and whether she will institute an inquiry into their pre-emption of half the development funds allocated to the Falklands.
§ The Prime MinisterIt was always our intention to provide these houses as quickly as possible. Cost increases occurred largely during the period September 1982 to May 1983 as a result of a series of factors of which the Government were fully aware at the time. The cost will be met from the £15 million rehabilitation grant. I see no need for an inquiry but the issues arising from the implementation of this contract have been, and are being, considered so that lessons can be drawn for the future.
§ Mr. Dalyellasked the Prime Minister on what conditions Her Majesty's Government is now prepared to lift the exclusion zone in the Falklands.
§ The Prime MinisterWe do not envisage keeping the 150 nautical mile protection zone around the Falkland Islands indefinitely, but we will not lift it prematurely. We need to be fully satisfied that Argentina renounces the future use of force, and have noted recent Argentine statements that they intend to pursue their claim by peaceful means.