§ 58. Mr. Mathers
asked the Secretary of State for the Colonies whether he has any statement to make regarding the financial relations between the Nyasaland Government and His Majesty's Government.
It has been agreed that the Nyasaland Government shall assume immediately a portion of the liability arising from the East African Guaranteed Loan which was raised in 1932–34 for the purpose of building the Zambesi Bridge, and developing the road and railway system in the Protectorate. The net deficit in the servicing of this loan has hitherto been met by an annual grant-in-aid from the United Kingdom Exchequer, amounting approximately to £140,000 per annum. Under the new arrangement the Nyasaland Government will provide approximately £40,000 per annum towards this deficit in each of the five years beginning 1st April, 1948, and at the end of this period the position will be reviewed. During this period the control previously exercised by the Treasury over the finances of the Protectorate will be relaxed.