7. Mr.SOMERVILLEasked the Under-Secretary of State for the Colonies whether it has been officially decided to proceed immediately with the construction of a line to connect the Uasin-Gishu branch of the Uganda railway with Jinja via Tororo; and, if the reply is in the affirmative, will he state the source from which the necessary funds are to be supplied?
§ Major BARNSTONAs the reply is rather long, I will, with the hon. Member's permission, circulate it in the OFFICIAL REPORT.
Following is the reply.
Approval has been given to the immediate construction of an extension of the Uasin-Gishu line from Turbo to Luzinga, a station on the Busoga railway north of Jinja. A northward branch from Tororo, through the Eastern Province of Uganda, and a branch southward through the North Kavirondo district of Kenya, are included in the scheme.
This scheme is directly intended for the development of the cotton-growing industry of Kavirondo and, particularly, of Uganda, where cotton cultivation has practically reached the limit which existing transport facilities permit. In addition, it will be necessary, in order to cope with the extra heavy traffic which is expected, to expedite the relaying of the main Uganda railway with heavier track, and the scheme includes provision for this purpose so far as the Mombasa-Nairobi section of the line is concerned. Three branch railways in Kenya, serving areas opened up to settlement by ex-soldiers after the War, will also be con- 479 structed, and, in addition, there are certain public utility services which were left over when the Kenya loan of £5,000,000 was issued with the intention that they should be met out of the proceeds of a further loan.
The total amount involved in these schemes is £8,000,000 which is far beyond the present capacity of Kenya and Uganda. In view of the importance of increasing the Empire's production of cotton, and of the benefit to industry in this country arising out of the orders for material which will be placed here, His Majesty's Government have decided to assist the local Governments to the extent of a loan of £3,500,000, which will be free of interest for five years and will then be repaid by annuities, representing interest at 5 per cent. and sinking fund combined, at the rate of 6 per cent. per annum, for a period of 37 years. Particulars of this loan grant will be circulated with a Supplementary Estimate which will be submitted to the House.
The additional £4,500,000 required will at a later date be raised by a public loan on the security of the revenues and assets of Kenya, Uganda and the East African Railway Administration jointly.