HC Deb 24 October 1963 vol 682 cc226-7W
Mr. Biggs-Davison

asked the Secretary of State for the Colonies whether Her Majesty's Government propose to assist the Nyasaland Government to meet that Government's share of the cost of the compensation scheme for overseas officers and the commutation of their pensions.

Mr. Sandys

The British Government have agreed, in view of Nyasaland's financial circumstances, to provide the following assistance:

  1. (a) An interest free loan of £1,750,000 to cover the Nyasaland 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.
  2. (b) A loan of £1,000,000 on the terms applicable to Commonwealth Assistance loans to meet 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.

Of this, £500,000 will be payable in 1963–64 and the Supplementary Estimate for this amount will be presented in due course. In the meantime, since the provision of funds is urgent, an advance is being made from the Civil Contingency Fund.