§ Mr. Braineasked the Secretary of State for the Colonies whether a decision has now been reached on the direct financial assistance to be offered by Her Majesty's Government to the Federation of Malaya in 1954.
§ Mr. LytteltonYes. Subject to the approval of Parliament, Her Majesty's Government are prepared, in implementation of the promise already given, to give the Federation of Malaya in 1954 a grant of £6 million towards the cost of the emergency. In arriving at this figure they had in mind that they would not wish to see the cash and available liquid resources in the hands of the Federation Government fall below $70 million to $75 million by the end of 1954. Should there be any unforeseen deterioration in the financial situation of the Federation of Malaya, Her Majesty's42W Government will be prepared to consider further assistance in respect of 1954.
As regards future years, should the emergency continue, Her Majesty's Government will be prepared to consider the matter well before the beginning of the Federation's financial year in question, in the same light.
The High Commissioner has been authorised to make this offer known in the course of the Budget Session of the Legislative Council which opens today.