§ Mr. MeacherTo ask the President of the Board of Trade (1) what inquiries he has made into the issue by the Export Credits Guarantee Department of financial guarantees to United Kingdom financial institutions in relation to trade with Iraq which may have breached the Government's guidelines on the export of military and related equipment; and what action, if any, has been taken as a result; [7801]
(2) if he will estimate the amount paid by the Export Credits Guarantee Department to the Midland bank since 1980 in respect of trade with Iraq by (a) Astra Holdings, (b) British Aerospace, (c) Royal Ordnance, (d) Vickers, (e) Racal (f) Plessey and (g) Thorn EMI; what assessment he has made of whether the relevant guarantees related to trade in breach of the Government's guidelines on the export to Iraq of military and related equipment; what action he has taken; and if he will make a statement; [7803]
(3) if he will estimate the amount claimed by United Kingdom clearing banks since 1980 in respect of Export Credits Guarantee Department guarantees given in relation to trade with Iraq; what proportion of this sum he estimates was claimed in relation to trade in breach of the Government's guidelines on the export to Iraq of military and related equipment; and if he will make a statement. [7804]
§ Mr. Nelson[holding answer 11 January 1996]: The consistency of ECGD support for certain export contracts with Government guidelines on trade for Iraq at the times is a matter which Sir Richard Scott may cover in his forthcoming report, on which I cannot comment at this stage. However, it has always been a condition of ECGD support that exporters obtain the requisite export licences.
Amounts paid by ECGD to Midland bank since 1980 under guaranteed lines of credits extended to Iraq included sums relating to contracts undertaken by Racal and by Thorn EMI, but not in relation to any of the other companies named. The total principal value of claims paid by ECGD in respect of these contracts was approximately £22 million.
It has been the practice of successive Governments not to disclose the details of individual contracts without the agreement of the parties concerned.
The total of claims paid under ECGD guarantees in relation to trade with Iraq was £683 million as at 354W 31 December 1995. Of this, £578 million was paid to banks under buyer credit and line of credit facilities; the balance having been paid to banks under buyer credit and line of credit facilities; the balance having been paid directly to exporters under short-term or supplier credit facilities. As against the figure of £578 million, recoveries of £72 million have been made, bringing the total outstanding unrecovered claims for buyer credit facilities to £506 million. A breakdown of the amounts claimed as between United Kingdom clearing banks and other banks, or of the amounts held by individual banks for their own account where loans have been syndicated, is not readily available.