asked the Chancellor of the Exchequer what is the policy of the Government on facilitating the payment by China for the exports of British goods to China which the Government are seeking to promote; what is the extent of the financial commitment by the Government and public bodies; and what would be the consequences of any failure by China to fulfil its obligations to pay.

I have been asked to reply.All the normal facilities of the Export Credits Guarantee Department are currently available for exports to this market. A $1·2 billion credit facility involving 10 British banks and supported by ECGD was arranged last December with the Bank of China to finance contracts for plant and equipment and associated services placed with Chinese trading organisations during the period ending June 1980. No business has so far been negotiated under these facilities.Contract negotiations are in progress on the part of both public and private sector companies for major projects in China,