HC Deb 13 June 1951 vol 488 cc2281-3
10. Mr. T. Reid

asked the Secretary of State for the Colonies what steps he proposes to take in response to the recent proposal of United Nations economic experts to set up a United Nations Organisation Finance Corporation to lend money for the development of underdeveloped territories.

Mr. J. Griffiths

The Report entitled "Measures for the Economic Development of Under-developed Countries" prepared by a group of experts appointed by the Secretary-General of the United Nations, which I assume my hon. Friend has in mind, is to be debated at the 13th session of the Economic and Social Council of the United Nations, which meets on 30th July. While I welcome this study of the development of the underdeveloped countries of the world by the Council, it will finally be for the General Assembly of the United Nations to decide what action to take on this Report, in the light of the recommendations of the Council.

Mr. Reid

Are the Government in favour of taking up these reports and getting them acted upon in the United Nations?

Mr. Griffiths

The attitude we shall adopt is now under consideration, but my hon. Friend knows my views about this matter.

15. Mr. N. Macpherson

asked the Secretary of State for the Colonies whether he will make a statement on the grant of financial aid by the Economic Co-operation Administration for the development of British Colonial Territories; and what are the terms and conditions on which advances are made.

Mr. J. Griffiths

British Colonial Territories are eligible for E.C.A. aid for general economic development, for the development of strategic materials and for technical assistance.

Aid for general development has until recently been limited to free grants to pay for essential equipment available only in the United States. The E.C.A. however, announced on 5th June the grant of financial assistance, amounting to 50 per cent. of the total cost, to eight projects in Colonial Territories. No conditions were attached to this assistance, other than that the projects will be completed.

E.C.A. assistance for the development of strategic materials is granted on a loan basis. A condition of the loan is normally that it shall be repayable in raw materials.

As regards technical assistance, in view of the very great shortage of technical experts, this is confined to recruitment for short term investigations, and surveys.

Mr. Macpherson

Could the Minister say whether any conditions regarding the employment of certain people are attached, and, secondly, in regard to the materials side, what are the conditions of interest on the loan?

Mr. Griffiths

In answer to the first part of the question, no conditions were attached to this assistance other than that the projects will be completed.

18. Mr. Donner

asked the Secretary of State for the Colonies to which Colonies, Protectorates and/or Trusteeship Territories the £2,750,000 grant from the Economic Co-operation Administration's special reserve fund for overseas development will be allotted; and whether he will publish a detailed statement showing the specific purposes for which these grants from Marshall Aid funds will be made in each territory.

Mr. J. Griffiths

E.C.A. has approved grants on the basis of a 50 per cent. contribution to the total cost of development projects in Sierra Leone, the Gold Coast, Nigeria, Tanganyika, Northern Rhodesia, North Borneo and British Guiana.

With the hon. Member's permission I will circulate the detailed statement for which he asks in the OFFICIAL REPORT.

Mr. Donner

Can the Minister say whether these grants are specially designed to supplement the British investment programme, or whether they are to be regarded as two wholly separate operations?

Mr. Griffiths

No, Sir, they are not regarded as separate operations. The grants are designed to supplement the investment programme.

Mr. Joynson-Hicks

Can the Minister tell the House the principles on which these grants are made, and how it is decided which of the territories shall benefit.

Mr. Griffiths

Perhaps the hon. Gentleman will put down that question, when I shall be glad to answer it.

Details of the projects and grants are as follows:

Sierra Leone: A grant of £75,000 for the construction of 10 new bridges to replace old and inefficient road ferries.

The Gold Coast: A grant of £500,000 for the construction of a rail link between Achiasi and Nwasam.

Nigeria: A grant of £162,500 for the expansion of the Enugu Collieries and a grant of £364,300 for the improvement and construction of a road from Kano through Maiduguri to the French Nigerian border.

Tanganyika: A grant of £600,000 for the construction of a road from Morogoro to Iringa.

Northern Rhodesia: A grant of £500,000 for the improvement of the road from Broken Hill to Tunduma on the Tanganyika border.

North Borneo: A grant of £340,150 for the construction of new wharves at Victoria, Jesselton and Sandakan.

British Guiana: A grant of £221,800 for the drainage and irrigation of an area for rice production.