Orders of the Day — Latin America

Part of the debate – in the House of Commons at 12:14 am on 9 July 1992.

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Photo of Mr Mark Lennox-Boyd Mr Mark Lennox-Boyd , Morecambe and Lunesdale 12:14, 9 July 1992

That is right. It was £1·2 billion in 1991, accounting for 2 per cent. of our exports. It is still a small market for us, and it must be improved, but in several markets the United Kingdom is the second largest foreign investor and has been so for a long time. British companies are expanding and making new investments.

I shall now deal with the constitutional position in Peru. On 8 April, together with our European Community partners, we expressed deep concern at President Fujimori's suspension of the constitution rule and reports of human rights violations. Meanwhile, we have suspended the balance of payments assistance promised to President Fujimori during his visit to the United Kingdom.

We can all agree with the hon. Member for Carrick, Cumnock and Doon Valley that the day of the dictators must be over—that is absolutely right. Naturally, international reactions to events on 5 April were universally critical. Peru's friends in the wider world should work for the earliest possible restoration of Peruvian democracy, as we are doing. It is also important to encourage the efforts of the Organisation of American States in that sphere.

My hon. Friend the Member for Gravesham said that Peru has many problems. The election of the constituent assembly is fundamental to the settlement of Peru's constitutional crisis. It is unfortunate that the elections planned for 18 October have been postponed until 22 November. We believe that there are valid reasons for that. The delay was for practical reasons. It is essential that the elections should be properly organised. However, we will continue to monitor progress, as it is most important that the elections should now proceed without further delay if the Peruvian Government's good faith is not to be challenged.

In developing his thesis about the fragility of democracy in Latin America, the hon. Member for Carrick, Cumnock and Doon Valley referred to Haiti, which was correctly described as French America. With our European Community partners, we support the efforts of the Organisation of American States to work for the return of President Aristide on the basis of the Washington accords.

The hon. Gentleman said that Mr. Mark Bazin was chosen as Prime Minister of the consensus Government, provided for in the tripartite agreement between the illegal regime, the Parliament and the army. He was right to say that the Bazin Cabinet does not represent a true consensus in Haiti. It excludes the pro-Aristide FNCD and the M RN party of Mr. Theodore. It is not clear that Mr. Bazin has the will or the capacity to negotiate a settlement, even were President Aristide to agree to negotiations. We shall press that during our presidency of the European Community.

The hon. Member for Carrick, Cumnock and Doon Valley also mentioned El Salvador. We are extremely pleased at the progress on the peace process in El Salvador. Credit must be given to the leaders of both Government and FM LN for the fact that they have overcome the obstacles in the implementation of the 16 January agreement. The United Nations, particularly ONUSAL, played a critical role in keeping the two sides talking. There is now a good chance of implementation being completed by the 31 October deadline.

The hon. Gentleman mentioned aid, and asked me to comment on aid for El Salvador. The European Community has pledged 50 million ecu to the reconstruction plan, of which the United Kingdom contributes 20 per cent. I am glad to report that the first group of projects has been approved, including the establishment of a land bank to help the ex-combatants to purchase land. I am also glad that the reconstruction plan recognises the importance of the non-governmental organisations' efforts, which the British Government have long supported.

The hon. Gentleman also cited Chile as a paradoxical example—because of its past, sad history—of a country that has emerged as a modern democracy. Our bilateral relations with Chile have grown in warmth and substance since its smooth and peaceful return to democratic rule in 1989. President Aylwin made a successful visit to Britain in April last year as the guest of the Government. Our contacts with his Government are good and frequent at senior and working level. Chile is a valuable trading partner. Its liberal market economy is an example to its neighbours and it provides excellent opportunities for British investment. I am glad that more companies are discovering what the Chilean market has to offer.

My hon. Friends the Members for Wycombe and for Gravesham spoke about their proposal for a Latin America conference next year and paid tribute to Canning house, which next year celebrates its 50th anniversary. I am happy to agree with my hon. Friends that Canning house plays a most valuable role in United Kingdom-Latin American relations. I am glad to confirm to my hon. Friend the Member for Wycombe that the Foreign and Commonwealth Office will continue its financial contribution of £30,000 in 1992–93. My hon. Friends are discussing with the Secretary of State the imaginative proposal for a Latin American conference in this country next year. Those discussions will continue, and my right hon. Friend will carefully consider the proposal.

I am grateful for this opportunity to review Britain's relations with Latin America. The changes in the region represent an irreversible commitment to progress and reform. Undoubtedly, there will be setbacks, but the general trend is set, and the Government will do what they can to reinforce it. The hon. Member for Carrick, Cumnock and Doon Valley said that the conditions were ripe for an improvement in relations. They are, and there will be an improvement. He also said that some of our relationships had run out of steam. That is a little inconsistent with his averment of an improvement in relations, which will certainly come about.

The future will provide many more opportunities to strengthen our relations in economics, culture, science and education. We shall certainly work to that end.