Colonel A. Evansasked the Secretary of State for the Colonies whether, in view of the fact that the cost of living index in Trinidad has risen by some 50 per cent. since the outbreak of war and no steps have been taken by the local government to subsidise essential food products, he will refrain from accepting their offer to make a free contribution of £800,000 to the Imperial Exchequer; and whether he will advise Colonial governments in this position to use such financial contributions to the war effort locally rather than send them home?
§ Colonel StanleyI have recently approved a proposal by the Government of Trinidad to subsidise the price of certain essentials in order to check any further rises in the cost of living. It is not the case that Trinidad is making a contribution of £800,000 to Imperial Funds in the current year. The Colony is, however, making a contribution of about £250,000 towards the cost of local defence, the balance of which is met by His Majesty's Government, and in addition proposes to make an interest-free loan to His Majesty's Government of about £500,000 out of available surpluses. In estimating these surpluses, allowance has been made for expenditure in subsidising the cost of living. In general His Majesty's Government would certainly not wish to accept any special war-time contribution from the Colony, whether by way of gift or loan, if the money were required for local expenditure.