Section 3 Abortive exploratory expenditure connected with overseas enterprises.

The Secretary of State may with the consent of the Treasury enter into an agreement with any person carrying on business in the United Kingdom, the Channel Islands or the Isle of Man, or with a company controlled by such a person, under which the Secretary of State undertakes that if the other party to the agreement, or a company controlled by that party—

and decides not to participate (whether by making an investment or otherwise), the Secretary of State will pay to the other party such sum, not exceeding the amount of the expenditure, as may be provided by the agreement.

Any such agreement may include such terms as the Secretary of State considers appropriate in the circumstances of the case.

Any expenses incurred by the Secretary of State by virtue of this section shall be defrayed out of money provided by Parliament.

Any sum received by the Secretary of State by virtue of an agreement under this section shall be paid into the Consolidated Fund.

In this section—