§ 70. Mr. Stonehouseasked the Secretary of State for the Colonies whether he will make a statement on the future of Nyanza Textile Industries Limited in Uganda, with, particular reference to the proposed purchase by the Uganda Government of the shares at present held in this company by the Calico Printers' Association and the Bleachers' Association.
§ Mr. ProfumoThe following is a statement on the subject made by the Uganda Minister of Finance in the Legislative Council on the 18th November.
The Government has agreed with the Calico Printers Association and the Bleachers Association, subject to the approval of the Legislative Council and of the Boards of the two Companies, for the purchase of their interests of 58½ per cent. in the Nyanza Textiles Ltd., Jinja, amounting to £1,057,229 for £792,922, i.e., at the rate of 15 shillings in the pound. The remaining holdings in the Company belong to the Uganda Development Corporation, Ltd. The result of these arrangements will be that the Government 88W becomes virtually the sole shareholder. This step has been taken because of difficulties outside its control which the Company is experiencing in the present stage of development. The Government believes that in time these difficulties will be overcome and that it is justified in further injections of public funds, including provision of £150,000 as additional working capital, into the financing of what it regards as a national asset. Arrangements are being made with the Calico Printers Association to continue provision of technical assistance and advice to the Company.