§ 56. Mr. Owenasked the Secretary of State for the Colonies why the Malayan Federation's request for a loan was rejected; and whether he will make a statement.
§ Mr. Lennox-BoydIf the hon. Member is referring to the suggestion of an Exchequer loan, the Malayan delegation to the recent talks in London were informed (and they accepted the position), that Her Majesty's Government do not contribute by that means to the development of independent Commonwealth countries. Our contribution is made through the facilities extended to them to raise open market loans in London, through direct investment by United Kingdom private enterprise and through the United Kingdom's membership of the Colombo Plan and various agencies of the United Nations which provide development finance. An independent Federation of Malaya will be able to make use of these facilities, in addition to receiving assistance from the Exchequer for other purposes on the lines described by my right honourable Friend the Secretary of State for Scotland on 23rd January in reply to a Question by the hon. Member for Bristol, Central (Mr. Awbery).