§ Mr. Braineasked the Secretary of State for the Colonies to make a statement about emergency expenditure in British Guiana.
§ Mr. Lennox-BoydSince the suspension of the Constitution in October, 1953, the British Guiana Government have had to undertake considerable emergency expenditure, including the extra cost of maintaining a battalion of United Kingdom troops in the Colony as compared with the normal basic costs of the unit when in this country. This emergency expenditure is a heavy burden on local revenue and reserves already severely taxed to maintain a central administrative and social services and to finance development.
Her Majesty's Government, therefore, propose to make a special grant to British Guiana during the current year of 30W £250,000 as a contribution to the emergency expenditure, and Parliamentary approval for this will be sought shortly. If necessary, consideration will be given later to the provision of any further assistance of this nature which may prove to be needed, having regard to the ability of the Colony then to bear the cost of the emergency.
The special grant is supplementary to the assistance provided for development in British Guiana. In addition Her Majesty's Government are continuing to bear the basic costs of the United Kingdom battalion stationed in the Colony, and it is only the extra cost which falls on local revenues.