HC Deb 14 February 1956 vol 548 cc245-6W
Mr. Beresford Craddock

asked the Secretary of State for the Colonies what further financial assistance Her Majesty's Government contemplate to the Government of Kenya towards expenditure, arising out of the emergency, in the coming financial year.

Mr. Lennox-Boyd

For the financial year 1955–56 Her Majesty's Government undertook to make available £14 million to the Government of Kenya towards expenditure arising out of the emergency. As a result of the improvement in the emergency situation and a buoyant economy in Kenya, coupled with a close control of expenditure, the actual figure for assistance drawn will be £10 million.

In consultation with my right hon. Friend the Chancellor of the Exchequer, I have now reviewed Kenya's financial

£ million
Gold Coast Nigeria
1953 1954 1955* 1953 1954 1955*
Total imports 73.8 71.2 70.5 108.3 113.9 108.7
Imports from United Kingdom 42.6 34.6 33.5 57.4 51.7 51.0
Total Exports 89.9 115.0 81.7 124.2 149.2 112.6
Exports to United Kingdom 37.6 46.2 32.9 97.6 106.0 77.2
* January-October, 1955, only.

prospects for the forthcoming year. Although the scale of military operations has been substantially reduced in recent months, there will still be a need for some expenditure particularly designed to hasten the end of the emergency and the proportion of expenditure devoted to rehabilitation and reconstruction arising from the emergency will be greater than in past years. As far as can be foreseen, expenditure arising out of the emergency in 1956–57 is likely to be in the region of £10.5 million towards which Kenya will be able to provide some £4.5 million from her own resources after providing for the maintenance of existing services and essential development programmes.

Subject to the approval of Parliament Her Majesty's Government will, therefore, be prepared to provide a further grant of £4 million and an interest-tree loan of £2 million to Kenya in the United Kingdom financial year 1956–57. This assistance will be called upon only to the extent that it proves to be needed.