§ Mr. Wallasked the Secretary of State for the Colonies whether the British Government propose to make assistance available to the Government of Zanzibar in 1963–64 to meet that Government's share of the cost of the compensation scheme for overseas officers and the commutation of their pensions.
§ Mr. SandysIn view of Zanzibar's present financial circumstances the British Government have agreed to provide the following assistance in 1963–64:
- (a) An interest free loan of £63,500 to cover the Zanzibar Government's share of the cost of compensation; after a grace period of 6 years the loan will be repayable by 19 equal annual instalments.
- (b) A loan of £52,000 on the normal terms for Commonwealth Assistance loans, to meet the local share of the cost of commutation of pensions; after a grace period of 6 years during which interest only will be payable, repayment together with interest will be made by 19 equal annual instalments.
The provision of funds is urgent and a sum of £115,500 will be advanced from the Civil Contingency Fund for this purpose; provision for repayment to this fund will be sought from Parliament by means of a supplementary estimate.