TNAG-1591-FCO40-2176-Appointment-of-Sir-David-Wilson-as-new-Governor-of-Hong-Kong-1987 — Page 83

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Oral Answers

House of Commons

Wednesday 18 February 1987

The House met at half-past Two o'clock

PRAYERS

[MR. SPEAKER in the Chair]

18 FEBRUARY 1987

Oral Answers to Questions

FOREIGN AND COMMONWEALTH AFFAIRS

Brazil

1. Mr. Jim Callaghan asked the Secretary of State for Foreign and Commonwealth Affairs if he will seek to pay a visit to Brazil.

The Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs (Mr. Tim Eggar): My right hon. and learned Friend has no plans at present to pay a further visit to Brazil. However, my right hon. and noble Friend the Minister of State for Foreign and Commonwealth Affairs will visit Brazil from 19 March to 23 March.

Mr. Callaghan: I thank the Minister for his reply. Is he aware that Brazil has the largest foreign debt in the world -£104 billion--and an internal inflation rate of 450 per cent? Is he further aware that if Brazil defaults on its payments it will create havoc in the world's banking and trading system? Given that our Chancellor is the hardest of all hawks in relation to Third world countries, what advice or assistance can the Minister give to help Brazil to stabilise its financial and trading affairs with the rest of the world and with this country in particular?

Mr. Eggar: We are, or course, aware of the debt problem that Brazil faces, but we welcome the strenuous efforts that have been made by the Brazilians to meet their repayment obligations. We are entirely convinced that an IMF agreement offers the best route to long-term economic recovery. We are, of course, confident of Brazil's long-term economic potential.

Mr. Maxwell-Hyslop: On this crucial matter, will my hon. Friend bear in mind that it is pointless to ask Brazil to pay a rate of interest higher than 6 per cent. on its debt because a higher rate would be wholly incompatible with the minimum growth rate required to provide a degree of economic opportunity for its population, without which democracy cannot be sustained?

Mr. Eggar: I recognise my hon. Friend's great knowledge of the problems that Brazil faces. I am not sure that I all the way with him in his assumptions about the

go maximum interest rate, but we have, of course, welcomed the accord on official debt that was reached at the Paris Club meeting of Brazil's creditors in January.

Mr. Foulkes: Does the Minister agree that Brazil represents a great opportunity for British trade and investment, particularly in view of recent reports that the

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Arabs are about to pull out? Will he confirm also that he has received representations regarding the lack of Export Credits Guarantee Department cover? Have he and his colleagues been able to persuade their colleagues in other Depertments to consider restoring this important element in our trade with Brazil?

Mr. Eggar: I welcome the importance that the hon. Gentleman attaches to inreasing our trade with Brazil. As I am sure he is aware, Brazil is already our largest market in Latin America, but we need to increase our market share even further. As a result partly of the Paris Club meeting in January and the agreement to which I have referred, we are giving close attention to how that agreement affects our policy on export credits.

Hong Kong

2. Mr. Sims asked the Secretary of State for Foreign and Commonwealth Affairs when he expects the new Governor of Hong Kong to take up his post.

The Secretary of State for Foreign and Commonwealth Affairs (Sir Geoffrey Howe): Sir David Wilson will take up his duties as Governor of Hong Kong on 9 April.

Mr. Sims: Will my right hon. and learned Friend assure Sir David that when he takes up his duties he will carry with him the good wishes of the many hon. Members who are friends of Hong Kong, particularly at this difficult stage in Hong Kong's history? Will my right hon. and learned Friend also consider easing Sir David's path as he takes up his duties by taking an international initiative to ease the problem of Vietnamese refugees in Hong Kong, a problem that has existed for many years and is imposing upon the people of Hong Kong a burden of £10 million per year, not to mention the human suffering and misery involved?

Sir Geoffrey Howe: I shall be glad to convey to Sir David Wilson the good wishes and support of the whole House as he embarks upon his difficult task. I know that he, together with Her Majesty's Government, will consider the particular problem of the refugee camps that has been raised by my hon. Friend. It is right to say that this long- standing problem, which has given rise to a great deal of difficulty and personal hardship, has been getting better over the years. Even last year, the numbers in the camps dropped by about 1,400 to a figure just in excess of 8,000 - itself much lower than the 12,000 some four years earlier. Nevertheless, we are actively considering what more might be done to help in that respect and it is certainly a matter that can benefit from international consideration.

Mr. Faulds: Does the right hon. and learned Gentleman accept that all parties in this House wish Sir David all the very best in his new job, realising that he is just one of a distinguished line of recent governors? Will the right hon. and learned Gentleman please take very carefully to heart the fact that Britain is in duty and in honour bound to do considerably more than she has been doing to help relieve the difficult and intractable problem of the suffering of the Vietnamese refugees in Hong Kong?

Sir Geoffrey Howe: I welcome what the hon. Gentleman said in the first half of his question, and I take note of the emphasis that he places on the importance of addressing ourselves to the problem under discussion.

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