§ The various projects which combined together will eventually constitute a total scheme for Shire Valley development have recently been reviewed and considered by the Government of Nyasaland and, to the extent which they are concerned, by the Federal Government. There are three principal aspects.
§ The first is a scheme for using the water of the Shire River in the urban development of Blantyre and Limbe and the immediate neighbourhood. For this purpose the Nyasaland Government, out of its £3 million C.D. & W. allocation is providing £1 million towards the cost. The Colonial Development Corporation is also working out means by which it can provide the remainder of the funds required and negotiations between it and the Nyasaland Government are in an advanced stage. When the final proposals emerge they will be considered with the utmost sympathy so that the scheme may go forward quickly.
§ A new scheme for the use of the river for power is in an advanced stage of consideration. It is for a 14 megawatt installation at the Mkula Falls, which may cost £3 million. The Federal Government, who have the primary responsibility for the power aspects of development, have provided the funds to commission a project report, which is now nearly completed. It will then have to be examined by both the Federal and the Nyasaland Governments, but if the report is favourable, it is hoped that the scheme will be able to start without further delay thereafter.
§ The financing of this scheme is the responsibility of the Federal Government, 654 who may do this within the ambit of their overall development plans, for which in the past they have been able to raise money by loans issued on the London market, as well as from their own resources. Failing this they may perhaps suggest to Her Majesty's Government that finance may be made available in the form of Commonwealth assistance loans in the spirit of the Montreal decisions. Naturally, careful consideration would be given to what would most appropriately be done.
§ The third resource is land. Large areas in the lower Shire Valley are at present swamp. The Nyasaland Government have commissioned a firm of consultants, who are carrying out an investigation as to the extent to which a large part of this area, which at present is only sporadically cultivated, can be brought into permanent cultivation. This will need some form of water control. Preliminary investigations show that the soil is excellent and that it may be possible to get water control without the expensive barrages previously contemplated. The final report of the consultants is awaited and when it is available it will naturally require very careful consideration by all the Governments concerned—the Federal Government, the Nyasaland Government and Her Majesty's Government.
§ The calls on Her Majesty's Government's financial resources for Colonial development are many and varied in relation to the size of the funds available, but it is very much hoped that it may be possible, at the appropriate time, to find the necessary finance to make a start on these projects and hon. Members may be assured that I shall not let any unnecessary obstacle stand in its way.