§ Mr. FlightTo ask the Chancellor of the Exchequer what assessment he has made of the impact of the financial crises(a) in Japan and (b) elsewhere in Asia on prospects for the UK's gross national product growth in 1998; and if he will make a statement. [21103]
§ Mr. LoughtonTo ask the Chancellor of the Exchequer what assessment he has made of the effect of market turbulence in the Far East on his Department's projections for gross domestic product growth in the United Kingdom over the next three years. [21342]
§ Mrs. Liddell[holding answer 17 December 1997]: The financial crisis in East Asia to date is not expected to have a major impact on the growth of the UK economy. However, the situation is still evolving, and the risk of further deterioration and significant global effects mean that developments need to be kept under close review.
§ Mr. Kenneth ClarkeTo ask the Chancellor of the Exchequer what effect the Government's commitment to provide up to 1.25 billion dollars in financial support to Korea will have on the previously published figures for the public spending reserve for other contingencies which might arise in 1997–98 and 1998–99; and if he will make a statement on the adequacy of the provision he has made for the reserve. [21707]
§ Mr. Darling[holding answer 19 December 1997]: The UK, together with a number of other countries, has agreed to consider providing further financial support to Korea, of up to %1.25 billion. As the Chancellor announced on 3 December this will be made available only if unanticipated circumstances create the need to supplement resources provided by the International Financial Institutions, while Korea remains in compliance with IMF arrangements. This does not affect the previously published figures for the public spending reserves. Public spending would only be involved if the loan was drawn down by Korea and the Treasury guarantee given to the Bank of England was called in the event of Korean default on repayments.