HC Deb 13 March 1984 vol 56 c111W
Mr. Marland

asked the Secretary of State for Foreign and Commonwealth Affairs (1) if he will make it the policy of Her Majesty's Government that part of any future aid to Tanzania will be earmarked to liquidate pipeline debts where the repayment depends upon the receipt by the debtor country of further foreign currency;

(2) if he will make it the policy of Her Majesty's Government that part of any future aid to Zambia will be earmarked to liquidate pipeline debts;

(3) if he will make it the policy of Her Majesty's Government that part of any future aid to Sierra Leone will be 'earmarked to liquidate pipeline debts;

(4) if he will make it the policy of Her Majesty's Government that part of any future aid to Nigeria will be earmarked to liquidate pipeline debts.

Mr. Raison

The situation of developing countries regarding the servicing of foreign debts is one of the factors taken into account in determining the level and form of United Kingdom bilateral aid. So long as the country concerned is not discriminating against United Kingdom creditors and is taking steps to improve its economic and financial situation, we would consider what we could do to assist by way of bilateral aid for the purchase of United Kingdom goods. We would usually aim to help in support of an adjustment programme, agreed by the recipient authorities with the IMF and World Bank; which may incorporate objectives relating to the servicing of foreign debts. It is not our policy to allocate United Kingdom bilateral aid for the direct purpose of liquidating outstanding foreign commercial debts.

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