§ Mr. Terlezkiasked the Secretary of State for Foreign and Commonwealth Affairs if he will undertake a major re-evaluation of bilateral aid and its effect upon British visible and invisible earnings and in particular a rationalisation of aid and trade provision procedures.
§ Mr. RaisonWhile the basic objective of the bilateral aid programme is to promote economic and social progress in developing countries, we bear British commercial and 23W industrial interests fully in mind. Bilateral aid funds are tied to the purchase of British goods and services except for the provision of local costs in some of the poorer countries. The aid and trade provision (ATP) procedures have recently been reviewed. The Secretary of State for Trade and Industry announced to the House the introduction of a new soft loan facility as part of the ATP on 12 November. By these means we hope to double the business supported by the ATP each year by 1988–89. In the light of this I do not believe a re-evaluation necessary.