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OVERSEAS DEVELOPMENT
Indonesia
30. Mr. MacShane: To ask the Secretary of State for Foreign and Commonwealth Affairs what assistance he provides to the independent trade union movement in Indonesia. [15267]
The Minister of State, Foreign and Commonwealth Office (Mr. Jeremy Hanley): There has been no change since the hon. Gentleman last asked that question. No aid is given to the independent trade union movement in Indonesia.
Mr. MacShane: Is not the deplorable fact that no help is given to one of the most important trade union movements in Asia a reflection of the complaint that the Minister's boss, Baroness Chalker, made in her lecture last week, when she protested at Treasury cuts in the budget of the Overseas Development Administration? We can leave that aspect of the Government's death throes to the Ministers involved, but will the right hon. Gentleman accept that the SBSI, the independent trade union movement in Indonesia, is an important social actor and should receive Government support? Is the Minister prepared to meet a small delegation to discuss whether there is some line of budget to give help to Indonesia in future?
Mr. Hanley: British aid to Indonesia was £22.2 million in 1993-94 and £21.5 million last year--excluding the Commonwealth Development Corporation's programmes and debt relief. The money is spent on those who are most in need. I do not believe that there is a strong case for
sponsoring the trade union movement in Indonesia, but there is a strong developmental, economic and commercial case for Britain to maintain a substantial aid programme to Indonesia--other donors agree.East Africa (Sustainable Development)
31. Mr. Carrington: To ask the Secretary of State for Foreign and Commonwealth Affairs what proportion of the aid budget is directed towards sustainable development in east Africa. [15268]
Mr. Hanley: In 1994-95, 7.6 per cent. of total British bilateral aid was spent on sustainable development in east Africa--Kenya, Tanzania and Uganda. In 1993, the latest year in which figures for our share of multilateral programmes to the three countries are available, 6.4 per cent. of the aid budget was spent on bilateral and multilateral aid to east Africa.
Mr. Carrington: I am grateful to my right hon. Friend for that answer. Does he agree that the quality of aid is more important than the straight quantity of aid? In order for our aid programme to be successful in east Africa, it is vital that the recipient countries pursue more sensible economic policies than they show signs of doing at present.
Mr. Hanley: I agree that our aid should be given to countries where there is not only poverty and a need for aid but a good developmental case and a good case for economic restructuring--Uganda is an excellent example. Our aid in Uganda has helped to achieve an average annual economic growth rate of 6 per cent. over the past eight years.
Miss Lestor: Notwithstanding that reply, does the Minister accept that one of the biggest threats to sustainable development in east Africa is the totally unsustainable level of external debt? Does he agree that it is unacceptable that Tanzania spends twice as much on repaying debt as on providing access to clean water? Does he also agree that it is unacceptable that Uganda is forced to spend $17 per person on debt, while it can still afford to pay only $3 per person on health?
Will the right hon. Gentleman assure hon. Members that at the spring meeting in April of the International Monetary Fund and the World bank, the British Government will be at the forefront in pushing for a comprehensive solution to the debt crisis aimed at restoring debt stock and debt servicing to sustainable levels by 2000, and financed from new and additional resources from within multilateral institutions, including the World bank and the sale of IMF gold stocks?
Mr. Hanley:
The hon. Lady will be aware that the United Kingdom is leading the way in the progress that is being made to reduce aid debt. Indeed, we have led the last two series of negotiations and we will continue to convert debt into aid, as we have done over the past few years.
Mr. Cash:
Will my right hon. Friend note the early-day motion in my name, as chairman of the all-party east Africa committee, which is designed to come forward with proposals--backed by President Museveni--
Mr. Hanley:
I will certainly look at that early-day motion. I shall discuss the matter with my right hon. Friend Baroness Chalker. As I have said, the United Kingdom is leading the way in the process of reducing debt and turning debt into aid.
32. Mr. Gapes:
To ask the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement on the current position with regard to sanctions against Iraq and provision of aid to Iraq. [15269]
Mr. Hanley:
The purpose of sanctions is to ensure that Iraq complies with its obligations under relevant United Nations Security Council resolutions. There has been some progress, notably in the recognition of Kuwait and UN-demarcated borders. However, I am sorry to say that Iraq remains a long way from compliance. Since 1991, we have given £73 million to the humanitarian effort in Iraq.
Mr. Gapes:
If the Government are concerned about the situation in Iraq today, why were they not concerned in the 1980s? Will the Minister give hon. Members an assurance that the Government are not allowing the diversion of aid, aid and trade provision funds or export credit guarantee funds to Jordan which might be used to assist the Saddam regime, as referred to in section E of the Scott report?
Mr. Hanley:
Yes, Madam Speaker.
Mr. Stephen:
Is it not vital to the interests of this country and to the people of the middle east that neither Iran nor Iraq should ever become powerful enough to overwhelm the other? Were not British trade relations with those two countries managed so as to ensure that neither country was able to dominate that region? Was that not a foreign policy triumph of which the House should be proud?
Mr. Hanley:
I am grateful to my hon. Friend for making these comments. However, today I am here to answer questions about the Overseas Development Administration and its role with regard to overseas aid, and I think it will be best if I stick to that subject.
We are conscious of the suffering in Iraq. It is Saddam, not the United Nations, who is responsible. Food and medicines are not subject to sanctions. There is clear evidence that Saddam is using Iraq's foreign currency reserves for military procurement, for ostentatious construction projects and for luxury items for his
hangers-on. This underlines the blatant disregard for his people. We will continue to help the people of Iraq-- they deserve our help.
33. Mr. Mackinlay:
To ask the Secretary of State for Foreign and Commonwealth Affairs what measures are being taken by the Overseas Development Administration to reduce the social and economic disparities that exist between the EU and new democracies in central and eastern Europe. [15270]
Mr. Hanley:
We contribute to the reduction of social and economic disparities between the EU and the countries of the region through the know-how fund. This aims to support their transition to a pluralist democracy and a market economy. More than £230 million has been spent since its inception in 1989.
We also provide assistance through our membership of the multilateral institutions that operate in the region, in particular the EU, the European bank for reconstruction and development, the European investment bank and the World bank.
Mr. Mackinlay:
I welcome the information given by the Minister. I wonder whether he would use his good offices and give consideration to the need for British newspapers to be available in all the further and higher education institutions of Russia and the former communist bloc countries. Countless young men and women are desperate to read and consume information about the United Kingdom but do not have access to a quality British newspaper. Surely it would be a small contribution if the United Kingdom made available those newspapers in such places, outside the main capital cities?
Mr. Hanley:
I can assure the hon. Gentleman that newspapers are available in British Council offices and libraries. They are also available on the streets of many countries in central and eastern Europe. There are some newspapers that I would not want those people to see anyway.
Sir Patrick Cormack:
Does my right hon. Friend agree that, in many cases, the communities that the hon. Member for Thurrock (Mr. Mackinlay) mentioned would be much better served by adequate provision of the BBC World Service? Does he also agree that British Council offices should never be closed in parts of former communist Europe?
Mr. Hanley:
I am grateful to my hon. Friend for that point. The British Council is reviewing its operations at the moment. The World Service will continue to be an excellent service, and I believe that my hon. Friend's praise for the World Service and the British Council is echoed throughout the House.
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