§ 17. Mr. Gammans
asked the Secretary of State for the Colonies if he will make a statement on the application by the Government of the Federation of Malaya for permission to raise a loan or by other means to obtain financial assistance to meet the abnormal circumstances in the country.
§ Mr. Rees-Williams
His Majesty's Government have considered the financial difficulties confronting the Federation of Malaya, and at an early date propose to ask for Parliamentary authority to provide £5 million towards the direct expenditure incurred by the Federation Government on internal security in 1949 and an additional £1 million towards the extra expenditure likely to be incurred on the Imperial Forces in Malaya in 1948 and 1949. I should add that these arrangements have been made in full consultation with the High Commissioner, and further help may be necessary in 1950, but, in the event of a material change in the position in Malaya, which cannot be deferred, the matter will be reviewed in the light of the position as it emerges.
As regards the matter of the loan, a Bill to authorise the raising of a loan of 100 million dollars has been introduced in the Legislative Council of the Federation and is to be considered on 31st March. With the consent of His Majesty's Government, the Bill provides for a portion of the loan to be raised in London.
§ Mr. Gammans
When the hon. Gentleman is considering this or any further application, will he realise the deep feeling there is in Malaya that this country gave a free gift of £20 million to Burma, which went out of the Commonwealth, and that, therefore, it is not right that we should be cheese-paring with regard to Malaya, which provides us with more American dollars than the total exports of the United Kingdom put together?