§ 63. Mr. HANNONasked the Secretary of State for the Colonies whether the Kenya Legislative Council authorised the negotiation of the loan of £3,500,000 floated in this country for the benefit of that colony; whether the Government of Kenya is in any way pledged to find the interest and service of the loan: and, if not, what steps His Majesty's Government proposes to take to safeguard British capital involved?
Mr. THOMASThe matter did not come before the Legislative Council of Kenya in the first instance because it was essential first to secure the consent of this House to the Vote of £3,500,000. The loan will be regularised by legislation in Kenya and Uganda at the earliest possible date, and no difficulty is foreseen in passing the necessary ordinances.
§ 64. Mr. BLACKasked the Secretary of State for the Colonies whether the Kenya Colony Legislative Council have refused to sanction the loan of £3,500,000 granted by the House of Commons; whether there is any agreement with the legislative council as to the rate of interest to be paid upon the loan; and whether there is any security that the expected interest will be paid when it becomes due?
Mr. THOMASI would refer the hon. Member to the reply which I have just given to the question of the hon. Member for Moseley. The discussion in the Legislative Council of Kenya, which has given rise to these questions, arose entirely out of a point of procedure which that council, in its regard for its own privileges, was perfectly entitled to take. There need be no doubt as to the security for the loan or the liability for interest at the rate demanded by the House and its punctual payment when it becomes due.
§ Sir F. WISEWill the interest and capital be guaranteed by the British Government?