HC Deb 18 May 1962 vol 659 c153W
Mr. F. M. Bennett

asked the Secretary of State for Commonwealth Relations whether, as a result of recent discussions between the British Government and the Government of Tanganyika, any modification has been made to the financial settlement with Tanganyika announced by the Secretary of State for the Colonies on 4th August, 1961.

Mr. Sandys

Yes. In order to alleviate financial difficulties arising from delays in the receipt of funds from other sources, and from unforeseen expenditure consequent on floods and famines, the British Government have agreed that the Tanganyika Government may now draw on that part of the special gift of £4 million towards the Development Plan (amounting to £1⅓ million) which, under the terms of the statement to which my hon. Friend refers, would have been drawn between 1st July, 1963, and 30th June, 1964. The Tanganyika Government for their part have undertaken to spend equivalent sums on the purchase of British goods and services.

£⅓ million will be made available for payments after 1st May, 1962, for British goods bought in Tanganyika, and £1 million will be paid to the Crown Agents by monthly instalments between May and October this year for the account of the Tanganyika Government, against that Government's undertaking to place through the Crown Agents new contracts for British goods and services to the value of £1 million by 31st October, 1962.

Parliament will be asked to vote the necessary funds by a summer Supplementary Estimate. In the meantime the necessary advances will be obtained from the Civil Contingencies Fund.