HC Deb 11 February 1964 vol 689 cc199-200
16. Mr. Chapman

asked the Secretary of State for the Colonies, whether he has accepted the main findings of Dr. Carleen O'Loughlin's economic survey of the proposed new Eastern Caribbean Federation, particularly in respect of capital needs; and what offers of new capital assistance he has made in consequence of this survey.

Mr. Fisher

The British Government accept Dr. O'Loughlin's Report as a useful examination of what these territories might need to make them self-supporting. We hope shortly to be in a position to discuss with the Governments concerned how far the British Government may be able to help them if they wish to implement the findings of the survey.

Mr. Chapman

Can the hon. Gentleman clear up the position? Is it in respect of the annual financial assistance or the capital assistance that there is at present disagreement between Her Majesty's Government and these territories on the road towards federation? Secondly, if, as we understand Dr. O'Loughlin's Report, something like £100 million in capital will be needed to put this area on its feet within 10 or 12 years, what sort of figure is the British Government offering towards that total?

Mr. Fisher

There are two reasons why this is being held up. The hon. Gentleman is right in thinking that it is capital rather than recurrent expenditure that is the difficulty. The main reasons are that there is still a difference of opinion between the various islands on the question of federation and the powers which ought to be entrusted to a federal Government. The second reason is, quite frankly, as the hon. Gentleman said, money. It is a very large sum of money that is being asked for over 10 years and even a very large sum over the first three years, and we cannot treat the Eastern Caribbean as a special case to the detriment of other territories. I cannot rob Peter to pay Paul and we have only a certain amount of cash—that is the difficulty.

Mr. Bottomley

Can the hon. Gentleman say how long the economic survey prepared by Dr. O'Loughlin has been in the hands of the Government?

Mr. Fisher

I think about six or nine months. I should like to check on that before I give the right hon. Gentleman a particular answer, but I shall let him know.

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