HC Deb 04 December 1958 vol 596 cc1362-4
45. Sir J. Hutchison

asked the Prime Minister whether he will consider legislation to permit the extension of the activities of the Colonial Development Corporation so as to cover enterprises in the Dominions as well as the Colonies.

The Prime Minister (Mr. Harold Macmillan)

The policy of Her Majesty's Government on this matter was stated in the White Paper of July, 1957, entitled "The United Kingdom's Rôle in Commonwealth Development" and was embodied in the Overseas Resources Development Act, 1958. It would be inappropriate for a United Kingdom statutory corporation, whose essential purpose is the fulfilment of the United Kingdom's special responsibility towards dependent territories, to invest money in new schemes in such territories after independence.

Sir J. Hutchison

Now that this Colonial Development Corporation, after a somewhat shaky start, is making ends meet and is indeed making a profit, does it not seem a pity that its area of responsibility and activity should be constantly reduced by Colonies becoming Dominions? It is not worth while to consider altering the legislation to provide for an organisation of this kind to operate in the Dominions as well as in the Colonies?

The Prime Minister

We have to consider the position that has developed. These are not Dominions; the word itself is out of date. These are independent Governments, and territories mostly allied to us through the Commonwealth link. I feel that it is right to keep this Colonial Development Corporation for the Colonies, and to use other methods of direct government loan that are being developed when we are dealing with the independent Governments of our Commonwealth.

Mr. Callaghan

If it is purely a question of nomenclature, it can easily be put right. If the Colonial Development Corporation is continuing to function in some of these territories—and at least one of the territories is anxious that it should do so—why should we exact this penalty from emergent nations of denying them the technical and managerial facilities which they are anxious to have?

The Prime Minister

Technical and managerial facilities are continued to the territories that ask for them. These things go on, but I still think that the very title, structure and tradition of this organisation are not suitable for what is now developing in the Commonwealth. I prefer the methods which were developed at Montreal, and which are working very well already in these countries. Let us take the enormous assistance that we give to India under a direct Government-to-Government arrangement.

Mr. Paget

Is not the great value of this Corporation, as opposed to Government loans, that it not only supplies money but supplies tremendous assistance in management? While it is true that the management assistance goes on in established schemes, it is not available to new schemes. Will not the Prime Minister reconsider this, particularly in areas where a loan of management experienced in development would be of tremendous value to these territories?

The Prime Minister

I shall certainly consider that point, which has been debated in this House, especially when the last Bill was before it. I think there is force in this argument, but we must be careful about continuing such arrangements when there is a break which is a break in character. Different relations seem to be more suitable between independent Governments than between this Government and the Colonial Territories.

Mr. Gaitskell

I am sure we will agree that if an independent country did not wish to have assistance from the Development Corporation it would be ridiculous to foist it upon them. Will the Prime Minister consider that there must be a waste involved if, after the Corporation has acquired a great deal of knowledge and experience of a particular territory and the Government in that territory wishes the Corporation to continue its assistance, it is not allowed to do so?

The Prime Minister

It can continue with old schemes and with new schemes on an agency basis or in an advisory capacity.

Mr. Callaghan

As we understand that to be the case, what is the question of principle which prevents the Corporation investing money as well as managerial skill?

The Prime Minister

Between independent Governments arrangements are best made between them.