§ 112. Mr. Awberyasked the Secretary of State for the Colonies why the past system of making a grant to Malta has been changed to one of loans; and why this was only on condition that an agreement would be made with the Maltese political parties on the question of constitutional arrangements for the island.
§ Mr. J. AmeryIt is the normal practice that revenue earning projects in colonial development programmes are financed by loans. In fact, only about£7 million out of Her Majesty's Government's contribution of£29¼ million to Malta's development plan totalling£32¼ million will be in the form of loans to the Government of Malta. This assistance has not been made subject to any political conditions.
If the hon. Member has in mind Her Majesty's Government's earlier offer of capital assistance of£25 million, I would remind him that that offer was made as 141W part of the integration proposals and of the alternative 5-year interim arrangements.
When agreement was not reached with the Malta Government of the time, the proposals as a whole, including the financial provisions, lapsed.