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East Timor

3. Mr. Derek Twigg (Halton): What steps her Department is taking in East Timor to provide humanitarian assistance and to assist with reconstruction. [95582]

The Parliamentary Under-Secretary of State for International Development (Mr. George Foulkes): I am pleased to tell the House that we have doubled our contribution to the response to the crisis in East Timor to £6.5 million. That is made up of £5.5 million for immediate assistance, and £1 million to support the transition to independence.

So far, our funding has been used to re-establish the UN presence by providing communication and transport systems. It has also been used to help fund the safe return of refugees and to provide funding for the World Food Programme to help it supply food and shelter. We are also working to ensure power and safe water supplies are restored.

We have also provided funding to the Gurkhas to enable them to run mobile clinics, escort humanitarian convoys, distribute food and help with the clean-up operations.

Mr. Twigg: I thank my hon. Friend for securing the much-needed extra resources, as many of my constituents have written to me about this matter, which is also of grave concern to many Church groups. Will my hon. Friend do all in his power to ensure that the assistance gets to the right people quickly?

Mr. Foulkes: My hon. Friend is right. One of the biggest problems is access to the refugees. There are about 230,000 refugees in West Timor, and only about 22,000 have been allowed to return to East Timor. I urge the Government of Indonesia to allow us safe access to the refugees and to do everything that they can to ensure the safe passage of refugees back to their homes.

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Mr. James Gray (North Wiltshire): Will the Minister take urgent steps to promote the interests of British companies in achieving the physical reconstruction of East Timor that he has described? If he answers that question in the affirmative, how will he explain the different answer to the same question given by the Secretary of State in China last December? At that time, she specifically excluded promoting British companies in China.

Mr. Foulkes: Our main aim is to ensure that the reconstruction is carried out as quickly and effectively as possible. If that can be done by British companies, then so much the better. Ann Clwyd (Cynon Valley): I am pleased to hear my hon. Friend the Minister mention the refugees in West Timor. I understand that 219,000 of them are still there; after three weeks' of trying, the UNHCR has managed to repatriate 16,000 people. That is clearly inadequate: does my hon. Friend agree that more pressure to release those refugees back to their homeland must be exerted on the Indonesian Government?

Will my hon. Friend also ensure that the investigation of war crimes in East Timor continues apace? As yet, forensic scientists have not even entered the country to begin what should be the urgent and immediate investigation of the thousands of killings during the Indonesian occupation.

Mr. Foulkes: I agree with my hon. Friend on both counts. We are doing all that we can to ensure that refugees return. We estimate that about 22,000 have returned, but that is only about 10 per cent. of the total. We are urging the Government of Indonesia to do everything that they can to get refugees home as quickly as possible. On the question of human rights violations, Britain fully supports international efforts to ensure that those guilty of abuses are brought to justice. We were one of the co-sponsors of the European Union resolution adopted on 27 September at the special session of the United Nations Commission on Human Rights, which called for an international commission of inquiry to establish the facts.

Dr. Jenny Tonge (Richmond Park): Does the Minister agree that the expense being placed on the Department for International Development by the reconstruction of East Timor would have been saved if the Government had listened to the clamour of that country's supporters and stopped the sale of arms to Indonesia much earlier? Will he assure the House that his Department will in future have more influence on where the United Kingdom sells its arms?

Mr. Foulkes: That matter is under active discussion. As far as the money is concerned, half the sum involved is being found by reallocating resources set aside for Indonesia to East Timor, a policy with which I am sure the hon. Lady would agree. The other half will come from the reserve.

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Rev. Martin Smyth (Belfast, South): We welcome the positive contribution of the Department for International Development to Indonesia, but can the Minister assure us that he will not take his eye off the ball, given that human atrocities occur in other parts of Indonesia, such as Ambon? Will he keep up the pressure on the Indonesian authorities?

Mr. Foulkes: I can certainly give that assurance. That is exactly the kind of thing that our funding to Indonesia is geared towards.

Banana Producers (Commonwealth)

5. Mr. Tony Baldry (Banbury): What assistance Her Majesty's Government are giving to Commonwealth banana-producing countries to assist diversification. [95584]

The Parliamentary Under-Secretary of State for International Development (Mr. George Foulkes): Through the EU, we are providing substantial funds to promote diversification and alternative income opportunities in Caribbean banana-producing countries. We are also supplying technical help to those programmes and support through our own programmes to help reduce vulnerability by developing educational skills and encouraging diversification. I might add that, in 1998, under the Commonwealth debt initiative, Jamaica, St Lucia, Dominica and Grenada all had bilateral debt cancelled.

Mr. Baldry: I am sure that the Minister will appreciate that most Members feel that the Commonwealth should have first charge on the UK aid budget, particularly the bilateral aid budget. Fairly or not, a lot of Commonwealth Caribbean countries say that they feel neglected. Only the other day, Prime Minister Jospin of France was in Guadaloupe to promote the interests of Francophone banana producers. Is it not time that the Government gave greater urgency to assistance for the Commonwealth Caribbean countries, not only through the EU aid budget, but through our bilateral aid budget?

Mr. Foulkes: I assure the hon. Gentleman--and the chairman of the Conservative party, the right hon. Member for Devizes (Mr. Ancram)--that there is no diminution in our concern for the Caribbean banana producers and the other Commonwealth countries. The position is quite the reverse. My right hon. Friend the Foreign Secretary has visited the Caribbean, and we have set up a Caribbean forum to discuss the problems of the region. I have visited the Caribbean on a number of occasions--[Interruption.] I shall be very happy to go again, and shall, indeed, do so when I go to Jamaica next month.

Trade Capacity Building

8. Mr. Phil Hope (Corby): What measures her Department is taking (a) bilaterally and (b) through multilateral organisations to support trade capacity building in the poorest countries. [95587]

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9. Mrs. Sylvia Heal (Halesowen and Rowley Regis): If she will make a statement on the actions her Department is taking to support trade capacity building in developing countries. [95588]

10. Mr. Tony Colman (Putney): If she will make a statement on the World Trade Organisation Seattle development round negotiations. [95589]

The Secretary of State for International Development (Clare Short): We are working both bilaterally and with a wide range of international organisations to help build the capacity of developing countries to participate effectively in the international trading system. A full list of the work that we are supporting has been placed in the Library of the House.

It is not widely appreciated that three quarters of the members of the World Trade Organisation are developing countries. That means that they are in a position to make great gains and improve their development prospects in the next trade round. It also means that agreement in the next round is dependent on their support. We have, over the past two years, provided £10 million to support training on the negotiating capacity of developing countries and their ability to make use of trade opportunities. We are also working to encourage the EU, the World bank and other agencies to provide further support.

Mr. Hope: I thank the Secretary of State for that answer. I recently visited Vietnam and saw at first hand--[Interruption.]

Madam Speaker: Order. The House must come to order. I cannot hear what hon. Members are saying; it is very disruptive.

Mr. Hope: Thank you, Madam Speaker. I recently visited Vietnam and saw at first hand the excellent poverty reduction work that is funded by DFID. Vietnam has applied to join the World Trade Organisation, but is not yet a member. Many developing countries that are members of the WTO are not getting a fair deal from that organisation. Will the Secretary of State take action to ensure that countries such as Vietnam and other WTO member states get a fair deal and are better able to participate in the system for resolving world trade disputes? Clare Short: I am grateful to my hon. Friend. I am absolutely convinced that a membership-based, rules- based organisation--which is what the WTO now is--gives developing countries the chance to secure better rights in the international trading system. However, we are concerned that some countries are reluctant to use the rules to exercise their rights because they fear the costs involved. Therefore, we have joined other countries in establishing a legal advisory centre, which will be launched in Seattle. It will make it easier for developing countries to exercise their rights under the rules-based system.

Mrs. Heal: I thank my right hon. Friend for her answer--[Interruption.]

Madam Speaker: Order. I cannot hear the hon. Lady.

Mrs. Heal: In thanking my right hon. Friend for her answer, I draw her attention to the disappointment felt by

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many developing countries at the outcome of the Uruguay round. What realistic expectations can they have for the new round? Clare Short: My hon. Friend is absolutely right: it is alleged that developing countries did not make gains from the Uruguay round. However, the World bank and others conducted a thorough study which found that developing countries' gains were at least as good as--and, in proportion to income, better than--those of the industrialised countries. That is not to say that the developing countries cannot make greater gains, but it is not true that they did not benefit from the last round. It is important that everyone understands that developing countries can gain more from a comprehensive round, which is the position that we should support.

Mr. Colman: Given the failure of negotiations on the multilateral agreement on investment at the OECD, does my right hon. Friend agree that it would be sensible to restart investment negotiations at the World Trade Organisation, with proper safeguards for core labour standards, environmental protection and good governance? If she agrees, will she take that agenda to UNCTAD 10 in Thailand in February in order to ensure consensus among the United Nations community? Clare Short: I agree that the poorest developing countries need massive inward investment that will provide infrastructure and access to modern technology and knowledge. The World Trade Organisation is the right place to negotiate an international investment agreement that will bring benefits to developing countries. The EU believes that such an agreement should be included in the next round, and we support both securing agreement in Seattle and assisting developing countries in fighting their corner.

Mr. John Wilkinson (Ruislip-Northwood): Is it not the case that the illegal distortions to world trade that are inherent in the protectionist regime of the European Union--particularly with regard to bananas, to which the Minister referred earlier--are causing severe impoverishment in third world countries? Is the World Trade Organisation not entitled to ask the European Union to put its own house in order? For example, there has been severe disruption on the streets of Ecuador, a third world banana producer, which is so severely in debt that it has been forced to renege on its obligations. Clare Short: I assure the hon. Gentleman that talks on bananas are continuing and we are hopeful that we will secure an agreement that will be WTO compatible and will guard the interests of the banana-producing Caribbean countries, in particular. I hope that we are on the brink of settling that long-running, unhelpful dispute.

I completely agree with the hon. Gentleman that the European Union's highly protective, highly subsidised agriculture is not good for consumers in Europe and is a barrier to trading opportunities for developing countries that have their natural advantage in agriculture production. We strongly support the consideration of agriculture as a major issue in the next trade round, and we hope to dismantle some of that protectionism.

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PRIME MINISTER

The Prime Minister was asked--


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