Dr. John CunninghamTo ask the Secretary of State for Foreign and Commonwealth Affairs if he will set out the factors underlying his decision to issue a ministerial directive to the accounting officer in his Department to incur expenditure on the Pergau hydro-electric project.
§ Mr. HurdThe accounting officer correctly carried out his responsibilities. I reached my decision against the wider background of Britain's interests in Malaysia. I had to take into account that an undertaking had been given at the highest level, and that we had made a formal offer of aid support for the Pergau project to the Malaysian Government. The Malaysians wanted to proceed. It would have been damaging to British companies and to British exports to Malaysia to renege on our undertaking. Later developments including the rapid expansion of our trade indicate that this was the right decision.
Dr. John CunninghamTo ask the Secretary of State for Foreign and Commonwealth Affairs what considerations underlay his Department's decision to arrange for the loan agreement for the Pergau hydro-electric project to be made directly with Tenaga Nasional; and what consideration was given to arranging it with the Government of Malaysia.
§ Mr. HurdThe reasons for the loan agreement in respect of the Pergau project being with Tenaga Nasional rather than the Government of Malaysia are set out fully in paragraphs 40 to 42 of the National Audit Office report on the project, laid before the House on 22 October.
Dr. John CunninghamTo ask the Secretary of State for Foreign and Commonwealth Affairs what options for financing the Pergau dam were considered; what was the cost of each; which was chosen; and what considerations underlay the choice.
§ Mr. HurdI refer the right hon. Member to paragraphs 4, 5, 35–29 and 57 and appendix 2 of the National Audit Office report on the project, laid before the House on 22 October.