Financial Aid (Hansard, 18 June 1959)

HC Deb 18 June 1959 vol 607 c646 646

§ 43. Mr. Gilbert Longden
asked the Under-Secretary of State for Commonwealth Relations whether he will make a statement about the recent financial talks in London with representatives of the Federation of Malaya.

§ Mr. Alport
The talks which took place in London ended on the 8th June.
The Government intend, subject to Parliamentary approval, to provide the Federation of Malaya with a grant of £2½ million in 1960 and £1½ million in 1961 towards the cost of the Emergency in Malaya; and to transfer certain British Service installations in Malaya worth about £2½ million to the Federation free of charge. The Government of the Federation have gratefully accepted this offer.
I will, with permission, circulate fuller information in the OFFICIAL REPORT.

§ Mr. Longden
I thank my hon. Friend for that reply, which will be of great satisfaction to all the friends of federation in all parts of the House. May I ask if there are any conditions attached?

§ Mr. Alport
There are no conditions whatever attached to this gift by the United Kingdom Government.

Following is the information: The United Kingdom has been giving the Federation of Malaya financial help in meeting the cost of the Emergency in Malaya; and also helping in cash and in kind with the expansion and development of the Federation's armed forces. Certain aspects of the programme of help were due for review. As a result of this review, which has just been conducted, the United Kingdom Government intends, subject to Parliamentary authority:

(a) to provide a grant of £2,500,000 in 1960 and £1,500,000 in 1961 towards the cost of the Emergency;
(b) to transfer to the Federation free of charge the R.A.F. installations at Kuala Lumpur airfield, the Batu Cantonment and the site and buildings of H.Q., Malaya Command (these installations, etc., are valued at about £2,500,000);
(c) to raise no charge in respect of some other camps and properties which have already been transferred to the Federation.

647 Certain other installations not required by the British forces, which the Government of the Federation would like to acquire for use by the Federation's forces, will be bought by the Federation at a price, which has been agreed at the talks, of $ Malayan 11 million, viz. about £1,280,000.