§ Mr. J. Rodgersasked the First Secretary of State to what extent the secession of Nyasaland from the Federation of Rhodesia and Nyasaland will give rise to a need for further financial assistance 115W from Her Majesty's Government; and how he intends that assistance to be made available.
§ Mr. R. A. ButlerIt is not at this stage possible to estimate the full extent of Nyasaland's needs. The Nyasaland Government have however, agreed that the net monthly cost of the Federal Services in the territory of up to £300,000 shall be met, as from 1st July, 1963, by the Nyasaland Government, who will reimburse the Federal Government as necessary.
It will therefore be necessary for the Government of Nyasaland to be assisted by way of grant-in-aid to cover the increased deficit and Her Majesty's Government propose to provide that assistance by increasing to the extent that may be necessary, the level of assistance of £1.5 million already afforded to that Government by grant-in-aid of administration in the financial year 1963–64.
A Supplementary Estimate will be submitted in due course to cover these costs. In the interim, however, it will be necessary for some immediate payments to be made and the necessary funds will be issued from the Civil Contingencies Fund.