§ Mr. Hector Hughesasked the Secretary of State for the Colonies if he will make a statement on the financial, industrial and trade, relations during each of the last five years between the United Kingdom and Mauritius; and what are his plans for the future in these matters.
§ Mr. StonehouseUnited Kingdom aid to Mauritius in the years 1961–66 has been as follows:
£,000 1961 1,954 1962 1,489 1963 2,075 1964 750 1965 681 1966 1,150 (estimated) The level of aid was greater in the earlier years mainly because of the special 298W assistance given to Mauritius for reconstruction after the 1960 cyclones.
The Government of Mauritius raised a £2 million loan on the London Market in 1963.
The Colonial Development and Welfare allocation for Mauritius for the period 1965–68 is £2.4 million. In addition, the Mauritius Government have been informed that subject to the usual criteria attaching to this form of assistance, Exchequer loans of up to £1 million will be available in each of the years 1966–67 and 1967–68.
In March, 1966, a sum of £3 million was paid in full to Mauritius as agreed compensation for the transfer of the Chagos Archipelago to the British Indian Ocean Territory for possible defence use.
Aid to Mauritius after 31st March, 1968, will depend on the total resources we can make available for overseas aid at the time, and Mauritius's needs in relation to those of other recipients of our aid.
Industrial and Trade Relations
The following table shows trade between the United Kingdom and Mauritius in the years 1961–65:
£'000 U.K. Exports U.K. Total Imports U.K. Imports of Sugar 1961 6,673 11,183 10,831 1962 6,128 12,004 11,569 1963 6,582 31,779 31,317 1964 7,338 22,823 22,440 1965 6,212 21,342 20,842 Mauritius's trade with the United Kingdom isinfluenced by Commonwealth Preferences and the working of the Commonwealth Sugar Agreement. It has been estimated that the average margin of preference on Mauritius's imports from the United Kingdom in 1961 was 11 per cent. Under the Commonwealth Sugar Agreement the United Kingdom imports 380,000 tons of sugar per annum from Mauritius at a negotiated price, now substantially above the world free market price for sugar. This represents over 80 per cent. of Mauritius's normal sugar exports to the United Kingdom.
The Commonwealth Sugar Agreement has been renewed until 1974, and the present negotiated price will continue until 1968. I have no information on the future level of Mauritius's preferences.