§ 74. Mr. T. Reidasked the Secretary of State for the Colonies if he will make a statement regarding the request of the Government of Malta for financial help over and above the £35 million already promised or paid.
§ Mr. LytteltonOn 1st August I circulated to the House the terms of an offer of financial aid which I had made to the Maltese Prime Minister.
The offer provided inter alia for a sum of £500,000 to be made available during the current financial year. This sum included £25,000 to cover the estimated cost to Malta this year of her share of expenditure on civil aviation which 116W hitherto has been borne by the Ministry of Civil Aviation. Her Majesty's Government regarded, and still regard, this as a liability on Maltese funds.
The Maltese Government, however, felt that a constitutional issue was involved which should be dealt with separately from the main financial discussions. At their request and after further negotiations, Her Majesty's Government have accordingly agreed that the sum to be made immediately available to Malta should be reduced by £25,000 while separate discussions on the constitutional issue proceed.
On this understanding the Maltese Prime Minister has now accepted the financial aid offered to his Government. Meanwhile, although the Maltese Government have not accepted our offer to reimburse the sum required for civil aviation this year, that offer still remains open.