HC Deb 03 July 1998 vol 315 cc331-2W
Sir Michael Spicer

To ask the Secretary of State for International Development if it is the Government's policy that the World Bank should be allowed to give support to India and Pakistan following their recent announcement of nuclear testing. [47609]

Clare Short

The G8 Foreign Ministers communiqué of 12 June points out that the recent nuclear tests by both India and Pakistan have endangered the region's security and prospects for economic growth. The Ministers called on both countries to take positive action to defuse tension in the region and encouraged peaceful resolution to the differences between them.

The Ministers also agreed not to oppose loans from the World Bank and other international financial institutions for basic human needs but, in the light of the economic and financial implications of the test for both countries, to work for postponement in consideration of other IFI loans. The British Government are examining case by case those proposals for new loans due to come forward for consideration in the World Bank and other IFIs to examine whether they meet basic human needs and have a positive impact on the poor.

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