§ 60 and 61. Mr. G. M. Thomsonasked the Secretary of State for the Colonies (1) the loss to the national income of Tanganyika during 1958 as the result of the fall in commodity prices; and what steps Her Majesty's Government are taking to provide financial assistance;
(2) the loss to the national income of Uganda during 1958 as the result of the fall in commodity prices; and what steps Her Majesty's Government are taking to provide financial assistance.
§ Mr. Lennox-BoydAs compared with 1956, the export price index number of Tanganyika for 1958 fell by about 13 per cent. and that of Uganda by about 5 per cent. Commodity prices are only one of the factors affecting the level of national income; this is shown by a comparison of the national income of these territories over the same period when that of Tanganyika increased by about 10 per cent. and that of Uganda by about 2 per cent. The effect, however, of falling prices upon an economy may be delayed. Because of the interaction of prices and other factors it is impossible to say what the national income would have been in 1958 had commodity prices not declined. In view of what I hope are temporary difficulties holding up the expansion of recurrent revenues at a sufficiently high rate and in order that the two Governments can continue to plan for basic services at reasonable levels, Her Majesty's Government have assured118W both Governments of their readiness to assist in meeting financial difficulties should the need arise. To the extent that the local resources of Tanganyika are inadequate to meet the approved recurrent budget for 1959–60, Her Majesty's Government will make available the necessary assistance. For the present the Uganda Government has sufficient reserves to meet possible recurrent deficits but if the present unfavourable circumstances continue that may no longer be so in two years' time and Her Majesty's Government will then be ready to help. On the capital side the needs of both territories have been much in my mind in considering the allocations of C.D. and W. monies for the new quinquennium, and I hope to make a general announcement on those allocations shortly.