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Aid Terms

Volume 893: debated on Thursday 12 June 1975

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asked the Minister of Overseas Development whether there are any proposals in mind for further softening the terms of United Kingdom aid to the poorest developing countries.

Consistent with our policy of giving the highest priority to the needs of the poorest countries, we have decided that future aid commitments to those developing countries which have a gross national product per capital below US $200 should normally be on grant and not loan terms.In addition, any development loans committed after 1st October 1975 will, if the recipient developing country agrees, be untied to the extent that goods can be purchased not just from Britain but also from the poorest developing countries.