§ Mr. Austin MitchellTo ask the Secretary of State for Trade and Industry what is his estimate of the scale of export guarantee losses arising from the invasion of Kuwait by Iraq.
§ Mr. Sainsbury[holding answer 15 October 1990]: It has not been the policy of this or previous Governments to disclose the details of ECGD's claims experience with individual countries. It would not in any case be possible at this time to estimate the Department's loss on Iraq and Kuwait, since the full extent of insured costs of manufacture in respect of frustrated contracts will not be known for some time. Claims payments will be made over a number of years, and the eventual loss will be reduced by any recoveries made under arrangements which might follow if and when Iraq eventually seeks to restore normal international relations. For these reasons, the eventual loss which ECGD might face should not be deduced from the value of credits made available to Iraq under the various financial protocols.