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19May94 UK: CHARITY SEEKS BIWATER PROBE.

A leading Third World charity is pressing MPs to quiz Margaret Thatcher about aid granted to Biwater's £400 million water supply contract in Malaysia.She has been asked to appear before the watchdog foreign affairs select committee, which is investigating the Pergau Dam aid-for-arms affair.But the World Development Movement charity claims that aid for both the Biwater and Pergau deals was linked to arms sales to Malaysia.In 1986, the Government agreed a £90 million aid package covering Biwater's contract.The WDM is preparing a legal challenge to further payments of the £200 million due for the Balfour Beatty/Trafalgar House/GEC Pergau project. It argues these are unlawful under overseas aid legislation.The select committee may be reluctant to delay its report by probing Biwater.But one member said: 'There may well be important questions about relations with Malaysia from 1981 onwards, not just in 1989.' Malaysia began a buy-British-last policy in 1981 after a row over student fees. CONSTRUCTION NEWS