§ Lord Taylor of Gryfeasked Her Majesty's Government:
What was the level of Export Credits Guarantee Department covering for arms sales to overseas government during the years 1994–95, and 1996–97. [HL800]
§ Lord Clinton-DavisFrom information readily available, the value of new defence-related business covered in these years was:
- 1994–95: £727 million
- 1995–96: £1,015 million
- 1996–97: £385 million
§ Lord Taylor of Gryfeasked Her Majesty's Government:
What is the current level of debt owing to the United Kingdom by overseas governments as a result of arms sales for the years 1994–95, 1995–96 and 1996–97. [HL801]
§ Lord Clinton-DavisFrom information readily available, the current level of debt owing in respect of defence related business covered by ECGD guarantees issued in these years is:
- 1994–95: £232 million
- 1995–96: £609 million
- 1996–97: £376 million
§ Lord Taylor of Gryfeasked Her Majesty's Government:
What consideration the Minister for Trade and Industry has given to a moratorium on granting of Export Credits Guarantee Department credits for arms sales to all developing countries. [HL802]
§ Lord Clinton-DavisIt is the Government's policy to support the sale of British defence equipment 113WA overseas where this is compatible with our political, strategic and security interests. We defend ourselves, and should not deny others the right to do the same without good reason. Under Article 51 of the United Nations Charter, all sovereign states have the right to self defence.
However, recognising the debt burden of some of the poorest countries and following discussion at the Commonwealth Finance Ministers' meeting in Mauritius last September, the Chancellor of the Exchequer set out a five-point plan to help resolve the debt problems of the so called Highly Indebted Poor Countries (HIPCs). The main thrust of the plan was to enable the HIPCs to exit debt rescheduling by the year 2000. Consistent with this initiative, ECGD have from September 1997 for two years provided official support to such countries only for exports which may be regarded as "productive expenditure"—i.e., expenditure which supports the economic and social recovery and development of the country. By its very nature this condition excludes most defence exports. There may be a few limited exceptions—for example, naval patrol vessels to protect fishing grounds.
§ Lord Taylor of Gryfeasked Her Majesty's Government:
What is the current level of debt owed by developing countries to the Export Credits Guarantee Department of the Department of Trade and Industry as a result of United Kingdom defence related sales. [HL803]
§ Lord Clinton-DavisFrom information readily available, the current level of debt owing by developing countries in respect of defence related business covered by ECGD guarantees is £3.4 billion.