Vol. 395 No. 4
9 Mr. Garland asked the Minister for Foreign Affairs if it is the Government's policy that the distribution of EC technical development aid to Central American countries should be determined by the individual country's compliance with the region's various peace accords; if, on this basis, he will seek to reverse the decline in Nicaragua's allocation with respect to other Central American countries; and if he will make a statement on the matter.
72 Mr. Allen asked the Minister for Foreign Affairs if he proposes to use his term as President of the European Council of Ministers to instigate the setting up of a programme of assistance towards the rebuilding of social programmes in Nicaragua, which were terminated because of the war.
81 Mr. Allen asked the Minister for Foreign Affairs if he will use his term of office as President of the European Council of Ministers to ensure that Nicaragua will have access to the European Investment Bank on the same terms as ACP countries to enable it to obtain funds to help with the rebuilding of the economy, which has been devastated by the Contra war and by the United States embargo.
82 Mr. Allen asked the Minister for Foreign Affairs if he will use his term of office as President of the European Council of Ministers to ensure that Nicaragua receives development aid under the conditions of the Hamburg Agreement between the European Community and Central American States; and if Ireland will oppose the decline in develpment aid to Nicaragua relative to the aid being given to El Salvador, Honduras and Guatemala, especially in view of the fact that Nicaragua has a better record of ensuring sufficient and equitable distribution of aid to those who are most deserving.
I propose to take Questions Nos. 9, 72, 81 and 82 together.
Nicaragua is given aid in the general context of Community aid to Asia and Latin America, as well as food aid and emergency assistance. In addition projects undertaken by non-governmental organisations are often co-financed by the Community.
Nicaragua is the largest single recipient of EC aid, accounting for about 40 per cent of payments since 1980. Last year the Community provided 15.625 million ECUS in aid, including food aid of 9.4 million ECU and co-financing with NGOs of 4.4 million ECUS.
It is correct that in recent years the proportion of financial and technical assistance has declined relative to some other recipients in the Central American region. There are two principal reasons for this.
First, there is a perception that this form of aid should be spread more evenly over the various countries and that Nicaragua has in recent years received a very large proportion of it. For example, while Guatemala received 8.5 million ECU in 1988, Nicaragua was the only other country in the region to receive any funds for financial and technical co-operation in that year. El Salvador which, exceptionally, was allotted 18 million ECU in 1987 received nothing the following year and indeed has received only an additional 3.3 million ECU in the entire period 1983-88. Honduras received no financial or technical assistance during 1987 or 1988.
The second, and more important, reason is that since the Hamburg meeting of Foreign Ministers of the Central American countries and the Contadora Group with the European Community, which was held in 1988, aid, in accordance with proposals put forward by the Central American countries, has increasingly been focused on regional projects. This regional approach was confirmed at the similar meeting which was held in San Pedro Sula in February last year. Regional assistance amounted to 39.1 million ECU in 1988, or 35 per cent of total commitments, compared with 22 million ECU in 1987 and only 3.15 million ECU the previous year.
At the Hamburg meeting the Central American states presented their plan of action, which was designed to support the peace process in the region by promoting regional integration and reconstruction. The Community made clear its willingness to respond to a number of aspects of the emergency plan.
At the meeting in San Pedro Sula I expressed support for a well-founded project having a regional dimension. Since then the Community has agreed the first instalment of a 150 million ECU commitment towards the setting up of a regional payments system in Central America. This project should be of significant direct benefit to Nicaragua and other countries in reviving trade between themselves.
Within the Community, Ireland has always supported the rebuilding of social programmes and the granting of all forms of development aid to Nicaragua. We intend to continue to do so while worthwhile projects of assistance to the Nicaraguan people are proposed.
The question of compliance by the various countries in the region with the peace accords is not directly related to the distribution of aid, which is decided purely on developmental grounds.
Finally I would like to deal with the issue of the European Investment Bank. The bank operates within Europe, and, by way of derogation, in Mediterranean countries under the terms of co-operation agreements with the state concerned. It also lends to ACP countries with whom the Community has contractual commitments and obligations through the Lome convention. While the Community is anxious to expand its relationship with Latin America the agreements with Asian and Latin American countries do not provide for loans from the EIB. As the bank does not have the resources to expand its operations to these regions, I have to say I feel that the council would be unable to accede to any request of this nature, whether from Nicaragua or the Central American area.
I thank the Minister for his very long considered reply. However, is the Minister aware that the Nicaraguan Government are dissatisfied that the proportion of aid, although substantial, has been considerably reduced and that the conclusion they have come to is that it has been reduced because they seem to threaten the United States which is a major partner of the EC?
While I accept the Minister's assertion that there is no relationship between the countries which comply with the peace accords and those who do not when aid is being granted, would he not agree that Nicaragua has been outstandingly co-operative in all the peace accords, which is more than can be said for a great number of the other countries?
I thank the Deputy for his comments but his statement insinuates that political pressure is brought to bear on the Community.
Absolutely.
I wish to tell the Deputy that the United States is not a partner of the Community. I know that Deputy was present at the meeting held this morning so he should have been listening to what the Minister for Foreign Affairs was saying. As I have stated, the general orientation of aid to the Central American region is changing to regional aid rather than aid to individual countries, and this is at the request of the Central American countries and not of the Community. I feel very happy to co-operate with this situation.
I want to call Deputy Bernard Allen who has some three questions tabled on the subject.
I want to respond to the Minister by saying that we would be very naive if we thought the United States is not exerting pressure. Does the Minister for Foreign Affairs have plans to launch his own initiative for the region during our term of Presidency of the EC?
The Minister for Foreign Affairs will have the opportunity, as indeed will the other Community Ministers for Foreign Affairs, of meeting representatives from the Central American states in Dublin in the very near future. At that stage, the Community will be prepared to listen to suggestions from the Central American states on the agenda. As I have said already, Ireland has always considered any worthwhile projects, as has the Community and, indeed, we will continue to do that.
My question relates to the change in policy which has just been announced. The Hamburg Accord was very clear, Nicaragua got a great proportion of aid in the early days because it had a good record of ensuring efficient distribution of the aid internally and it, more than other countries, had complied with the terms of the peace accord. It had specific problems, one of which was a breach of the GATT Agreement by the United States, which has not been attacked by Ireland or the Community. I understand that what the Minister of State is saying is that irrespective of compliance with the peace initiatives or with the spirit that informed the Hamburg Accord, the basis for giving funds to Central America will be the proportion one country is getting in comparison with another. For that reason may I place on record that in the past three years El Salvador, Guatemala, Honduras, who have done least and, in fact, some have done a great deal to wreck the peace accord, have got increased aid while the aid to Nicaragua has been decreased? It is a scandalous change in policy——
The Deputy seems to be imparting a lot of information rather than seeking it.
I hope the Minister is making a mistake.
I am sorry, a Cheann Comhairle, that Deputy Higgins apparently was not listening. He talked about Honduras and El Salvador getting a lot of money in the past years——
There is democracy.
——but in 1988 El Salvador got nothing and in 1987-88 Honduras got nothing.
For good reason — the violation of human rights.
Is the Deputy looking for information or does he wish to impart it?
Yes.
If the Deputy is looking for information, I would be quite happy to give it to him. Along with other Ministers of the Community who attended the meetings, I am quite happy to go along with what these countries are saying, that is that they would much prefer to see the aid being given on a regional basis rather than on the individual country basis. There is an awful lot of sense in that.
The Taoiseach assured President Ortego that they would stand by the Hamburg Accord.
Let us deal with another question, No. 11 please.
I am sorry, a Cheann Comhairle, but I must say that we are standing by the Hamburg Accord but that does not seem to coincide with what Deputy Higgins thinks.
