HC Deb 21 February 2000 vol 344 cc834-5W
Mr. Streeter

To ask the Secretary of State for Foreign and Commonwealth Affairs what plans he has to end export credits for arms sales. [109199]

Mr. Hain

The scope of the Government's productive expenditure initiative (which excludes export credit cover for projects that do not contribute to the social and economic development of the country concerned) is being discussed as part of the thorough review of ECGD ordered by the Secretary of State for Trade and Industry. The FCO is playing a full part in this review.

Mr. Streeter

To ask the Secretary of State for Foreign and Commonwealth Affairs what recent discussions he has had with the Secretary of State for International Development regarding the decision to ban 62 of the world's poorest countries from receiving Export Credits Guarantee Department cover for arms sales. [109198]

Mr. Hain

The Secretary of State welcomes the announcement by the Chancellor to extend the so called "productive expenditure" criteria for export credits to a further 22 developing countries (taking the total to 63). These criteria exclude projects that do not contribute to the social and economic development of the country concerned. This does not exclude export credit support for arms sales but military equipment can be provided only when improved security can be shown to have a positive development impact, for example, fishery protection vessels. The scope of the productive expenditure initiative is being discussed as part of the thorough review of the Export Credits Guarantee Department ordered by the Secretary of State for Trade and Industry. The FCO is playing a full part in this review.

Back to