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Underdeveloped Countries (Economic Aid)

Volume 807: debated on Monday 30 November 1970

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asked the Minister of Overseas Development what is his estimate of the balance of payment effect for Great Britain of an increase of 10 per cent. in economic aid to underdeveloped countries by all Western donors, assuming a continuation of present patterns in the distribution of aid.

With the figures available and the range of assumptions involved, I cannot make a precise estimate but, on the basis of the aid and international trade patterns in 1964–66, I consider that there would be a net annual improvement of £5 million.