§ Mr. F. M. Bennettasked the Secretary of State for the Colonies whether he will make a statement on the outcome of the recent talks between his Department and a delegation from Mauritius about the Mauritius Cyclone and Drought Insurance Fund.
§ Mr. MaudlingA delegation from Mauritius, led by the Chief Minister and including representatives of the sugar industry, has discussed with my Department the position of the Mauritius Cyclone and Drought Insurance Fund following the heavy calls made upon it as a result of the cyclones and drought of the last three years.
Her Majesty's Government agree as to the importance of ensuring the continuance of the Cyclone and Drought Insurance Fund and are prepared to consider giving financial support to the Mauritius Government to help that Government to support the Fund.
This problem was approached on the basis that the Fund should be in a posi- 158W tion, if there is an "event" (i.e. an officially declared drought or cyclone) in 1963, to meet such obligations as will ensure that the reinsurance contract which the fund has entered into is honoured.
On the understanding that the industry would make itself responsible for Rs.9m., Her Majesty's Government would not object to a promise by the Mauritius Government to underwrite the Fund in 1963 up to Rs.10m. or £750,000, and would undertake to provide an Exchequer loan, if needed, to meet any consequential shortfall in development finance up to that amount in respect of an event in 1963.
If the Mauritius Government is called upon to make a payment in respect of an undertaking to underwrite the Fund in 1964 Her Majesty's Government will be prepared to consider with that Government what it can do to provide assistance if needed.