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Latin America

My Lords, first, I thank my noble friend Lady Hooper for introducing this debate. Sadly, I disagree with her and my noble friend Lord Brooke, because one reason we in this country focus so seldom on that part of the world is that we use the all-embracing term ““Latin America”” and the even more all-embracing term, the ““Americas””. I always prefer to refer to the United States of America and Canada, when referring to north America and, when referring to points south, I prefer to say ““central America”” and ““south America””, because the focus is much more closely aligned to what one is talking about. However, I have great respect for their views. Most of what I shall say in this short speech will be about Argentina. However, I also wish to say something about south America as a whole. It is quite extraordinary that in the debate last Thursday on the Queen’s Speech concerning defence and international affairs it seemed that there was nowhere in the world beyond Europe, except for Africa. Sadly, many African countries appear to be poorly governed and many people live in poverty. We are extremely distressed about that. However, that is also the case in many parts of the world. Why can we not focus more on such matters in south-east Asia, the Indian sub-continent and south America? There are several countries in South America where there is poverty—for instance, the favelas of Rio and the slums of Isla Marsial outside Buenos Aires. In the past, British investment has played an important part in the development of many South American countries—especially in railway systems, not least in the Argentine. There is enormous potential for future investment, in spite of some unsatisfactory economic regimes. I set foot in Argentina for the first time 50 years ago. It was then suffering under the corrupt and oppressive dictatorship of General Peron. I was there when there was, first, an unsuccessful revolt and then later in that year, 1955, a successful revolution when he was removed from power. My experience of that country during that visit, which lasted for a year, ranged from Buenos Aires, in particular, the northern provinces of Santa Fe, Entre Rios, Corriantes and Formosa, and right down to Rio Gallegos in the south. My old company, Bovril, which was why I was in Argentina, had estancias and meat-packing factories, I learned much about cattle and how to put them in cans. After that initial visit, I returned several times until the company was taken over in 1971. Sadly, I have not been back since but I have followed the fluctuating fortunes of Argentina ever since. Unfortunately, recent history has not changed the impression of economic instability that I first encountered in 1955, although from time to time things have appeared to be much improved, for short periods sadly, only to revert to hyper-inflation or other horrors. For example, in 2002, Argentina went from a country widely held up as a model of successful free market reform to one that defaulted on its public debt of some $155 billion. Since then there has been an enormous restructuring of Argentina’s debt, where creditors have had to accept a cut in principal, a lengthening of maturity and a reduction in payment of interest. Despite that, Argentina’s debt will still be more than $120 billion. Can the Minister say what steps Her Majesty’s Government are taking to ensure that the Argentine Government are encouraged to maintain fiscal stamina and to negotiate settlements with the large number of foreign firms that are owed so much? That might eventually attract the much-needed investment which would transform prospects for the Argentine economy in the middle and long term. I turn to a completely different subject. Last Sunday, the Sunday Express carried an extensive report that there was increased tension in the Falkland Islands and that 2,000 extra troops were being sent to boost the garrison. As we know, Argentina has always laid claim to these islands, which it calls the Islas Malvinas, and we accept that while in no way agreeing. Perhaps the Minister will enlarge on that situation. Is there any truth in the report in the Sunday Express and, if so, what contingency plans are there in case it develops into a dangerous situation? Can he confirm that a frigate or destroyer is on station off the islands? Can he also confirm that recently there have been joint exercises off the island between Argentine and British naval forces? Argentina is a great country of which I am very fond. It always seems to be able to pull out of its difficulties. It has great advantages. It is a most attractive and varied country ranging from the freezing and windy Tierra del Fuego in the south to the tropical forests of the north by way of some of the most productive countryside and farmland in the world. I can strongly recommend it to your Lordships if a visit is being considered.