---

FOREIGN AND COMMONWEALTH AFFAIRS

Iran

Mr. Stephen Twigg: To ask the Secretary of State for Foreign and Commonwealth Affairs what assessment he has made of the evidence of the Director of the CIA to the US Congress on Iranian foreign policy. [105003]

Mr. Hain: We are not aware of the CIA Director recently addressing Congress on Iranian foreign policy. We are, however, aware that he addressed the Senate on 3 February and touched on Iran.

Arms Sales

Mr. Streeter: To ask the Secretary of State for Foreign and Commonwealth Affairs what plans he has to end export credits for arms sales. [109199]

Mr. Hain: The scope of the Government's productive expenditure initiative (which excludes export credit cover for projects that do not contribute to the social and economic development of the country concerned) is being discussed as part of the thorough review of ECGD ordered by the Secretary of State for Trade and Industry. The FCO is playing a full part in this review.

Mr. Streeter: To ask the Secretary of State for Foreign and Commonwealth Affairs what recent discussions he has had with the Secretary of State for International Development regarding the decision to ban 62 of the world's poorest countries from receiving Export Credits Guarantee Department cover for arms sales. [109198]

21 Feb 2000 : Column: 835W

Mr. Hain: The Secretary of State welcomes the announcement by the Chancellor to extend the so called "productive expenditure" criteria for export credits to a further 22 developing countries (taking the total to 63). These criteria exclude projects that do not contribute to the social and economic development of the country concerned. This does not exclude export credit support for arms sales but military equipment can be provided only when improved security can be shown to have a positive development impact, for example, fishery protection vessels. The scope of the productive expenditure initiative is being discussed as part of the thorough review of the Export Credits Guarantee Department ordered by the Secretary of State for Trade and Industry. The FCO is playing a full part in this review.

Paper and Timber Products

Mr. Reed: To ask the Secretary of State for Foreign and Commonwealth Affairs what steps he has taken to ensure that paper and timber products purchased by his Department come from a sustainable source. [110161]

Mr. Hain: The Department has issued environmental guidance to purchasing staff which encourages buyers to use products from sustainable sources.

This guidance is being reviewed as part of the Environmental Audit of FCO operations.

Mr. Reed: To ask the Secretary of State for Foreign and Commonwealth Affairs if he will ensure that paper and timber products purchased by his Department are independently certified by the Forest Stewardship Council as coming from a sustainable source. [110162]

Mr. Hain: The Forestry Stewardship Council (FSC) label is accepted by buyers as demonstrating that timber and timber products have come from sustainably managed resources. It is not practicable to require that all paper and timber products purchased by the Department are independently certified by FSC because this might discriminate against any equally valid schemes and therefore be against public procurement rules. Moreover, insistence on FSC certification alone might result in FCO failing to meet all its requirements as only a tiny percentage of timber products are currently FSC certified. The Department is undertaking an environmental audit of its operations.

The issue of certification of sustainably managed paper and timber sources will be addressed. Evidence of sustainability might take the form of a certificate issued under a credible, preferably independent, verification scheme; or other documents which demonstrate the operation of an environmental management system incorporating forest management criteria which conform with internationally recognised principles such as the Helsinki Guidelines.

China

Mr. Ben Chapman: To ask the Secretary of State for Foreign and Commonwealth Affairs what plans he has to encourage further strengthening of professional exchanges between the UK and China. [110404]

Mr. Battle: We attach importance to strengthening professional exchanges with China. The British Council has given particular support to this work, notably in the

21 Feb 2000 : Column: 836W

educational, legal and construction sectors, through collaboration projects, seminars and other training schemes, with the assistance of professional institutions.

We also support the UK/China Forum, a high-level non-governmental body, the first meeting of which was held in October 1999, and whose work in the fields of industry, finance, environment, science and technology, law, education, culture and the media, should also strengthen professional exchanges in these areas.

Mr. Ben Chapman: To ask the Secretary of State for Foreign and Commonwealth Affairs what plans he has to increase co-operation with China within the framework of the UN for the promotion of international peace and security. [110405]

Mr. Battle: As Permanent Members of the UN Security Council, we and China maintain an ongoing dialogue on a range of international peace and security issues. Chinese peacekeepers also serve with British peacekeepers in a number of countries.

Mr. Ben Chapman: To ask the Secretary of State for Foreign and Commonwealth Affairs what assessment he has made of the effectiveness of Voluntary Service Overseas in strengthening links between young people from Britain and China. [110406]

Mr. Battle: Voluntary Service Overseas' mission is to post skilled volunteers to work in organisations with the aims of skills exchange, institutional development and poverty reduction, as well as to provide educational opportunities for the volunteers. The commitment each VSO volunteer makes to working in China for a minimum period of two years undoubtedly helps to strengthen links between young (and not so young) people in Britain and China. DFID provides grant-in-aid to VSO, and is responsible for carrying out evaluations of its effectiveness.

Mr. Ben Chapman: To ask the Secretary of State for Foreign and Commonwealth Affairs what plans he has to promote the development of exchanges between police forces in China and the UK in the field of protecting the victims of crime. [110910]

Mr. Battle: We encourage increased links with the Chinese police. UK police forces and their Chinese equivalents have co-operated successfully on a number of cases. The UK has provided training for senior Chinese police officers; the Chinese have indicated that such training is highly valued. Further exchanges are planned both with the police and the National Narcotics Control Commission. We believe that these exchanges will expose the Chinese to best practice and further develop respect for civil rights and the rule of law in China.

Mr. Ben Chapman: To ask the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement about the steps being taken by the Government to encourage China to continue its process of economic reform. [110908]

Mr. Battle: We support China's process of economic reform and we believe that China's membership of the WTO will prove a powerful stimulus to China's continuing economic reform. We also believe that the presence of British companies in China--there are now over 2,500 British-invested Joint Ventures--encourages China to continue the process of economic reform.

21 Feb 2000 : Column: 837W

The Department for International Development is supporting the process of reform of State-Owned Enterprises through a £19 million programme to develop models for enterprise restructuring and development. They are also in discussions with the International Monetary Fund and the World Bank about co-operation in assistance with fiscal reforms.

We also support the training of Chinese lawyers and judges, and believe that progress towards a proper rule of law will help China's economic reforms. We also assist in the training of Chinese financial regulators through a course funded by British Trade International, and the Treasury hold a regular financial dialogue with their Chinese counterparts. We believe all these programmes have a positive effect on China's economic and financial reforms.

Sudan

Mr. Rowe: To ask the Secretary of State for Foreign and Commonwealth Affairs what methods his Department uses to assess transparency in accounting for the expenditure by the Sudanese Government of its oil revenues. [110382]

Mr. Hain: Oil was first exported from Sudan in August 1999 and the Government of Sudan have a 5 per cent. stake. We have pressed for revenues to be used for development projects and for transparency in the oil account. The Government of Sudan have made public assurances that this will happen. We shall look to them to honour those assurances and shall remain focused on this issue as evidence becomes available.

Exports

Mr. Rowe: To ask the Secretary of State for Foreign and Commonwealth Affairs what criteria his Department uses in advising the Department of Trade and Industry on designating a country as a suitable recipient of UK exports. [110383]

Mr. Battle: The FCO and DTI trade support services are now operated by British Trade International, which has lead responsibility within government for trade development and promotion on behalf of British business. Established in May last year following a Cabinet Office review of all export promotion activities across government, British Trade International has now published its national strategy for international trade and development.

---