Poland (Hansard, 17 December 1990)

§ Mr. Alex Carlile
To ask the Secretary of State for Foreign and Commonwealth Affairs what is the policy of her Majesty's Government towards assisting the economy of Poland; and if he will make a statement.

§ Mrs. Chalker
The Government fully support the Polish Government in their efforts to stabilise the economy and introduce a free market system. Our policy is to provide technical assistance, help improve trade and other links with the EC, and to contribute to multilateral financial support, whilst seeking to avoid adding to Poland's debt burden.
Bilateral technical assistance is given through the know-how fund for eastern Europe, in which £50 million is pledged to Poland; this gives priority to encouraging and assisting measures which will help introduce quickly a free market system. We have also provided bilaterally a $100 million grant to the international stabilisation fund which is funded by a group of Western donors to help underpin the value of the zloty while the economy is liberalised.
We play a leading role in the EC's programme of project assistance for Poland. We have promoted the improved trade access Poland has gained from the EC and the strengthening of other Community links. We look forward to the start of negotiations for an EC-Poland association agreement to expand upon the current trade and co-operation agreement.
We also contribute through international financial institutions to multilateral financial support for the countries programme. We have participated in the Paris club rescheduling of Poland's official debt and are taking part in a special Paris club working group on the long-term problem of Poland's debt.

§ Mr. Alex Carlile
To ask the Secretary of State for Foreign and Commonwealth Affairs if he will give details of spending to date of know-how funding for Poland and make a statement on the future of the know-how fund.

§ Mrs. Chalker
I refer the hon. Member to the reply I gave my hon. Friend the Member for Dover (Mr. Shaw) on 10 December at column281.
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Poland, Hungary, Czechoslovakia and the Soviet Union are currently eligible for assistance from the fund. Further countries may be included as and when they demonstrate satisfactory progress towards encouraging market-driven democracies.