HC Deb 23 March 1965 vol 709 cc75-6W
Mrs. Shirley Williams

asked the Minister of Overseas Development whether Her Majesty's Government propose to make further aid available to Zambia; and to what extent the British Government undertaking, given on the dissolution of the Federation of Rhodesia and Nyasaland, to consider the question of further aid has now been fulfilled.

Mrs. Castle

The British and Zambian Governments have recently had further discussions on the provision of aid to Zambia.

2. The British Government had already in July 1964 made a grant of £2.75 million towards the ex-Federal short-term debt, and a loan of £3 million towards Zambia's share of compensation payments to officers designated under the Overseas Aid Scheme. In November a grant of £1 million was announced towards the cost of the new University of Zambia.

3. In fulfilment of the British undertaking given at the time of the dissolution of the former Federation, the British Government have now examined with the Zambian Government the whole range of Zambia's financial and economic problems and, after a full exchange of views, have offered the Zambian Government a further £10 million, to be spread over the period 1965 to 1970. This aid would be in addition to British technical assistance to Zambia which would continue.

4. The Zambia Government did not accept that such an offer fully met the claims that had been put forward for compensation to Zambia in respect of the share of the Federal public debt which Northern Rhodesia had taken over on the dissolution of the Federation and of the contributions which Northern Rhodesia had previously made to Federal reserves. Nevertheless having regard to the spirit in which the British Government had made their offer and the economic problems now facing the British Government, the Zambia Government have decided not to pursue their claims any further and have accepted the British Government's offer.

5. The purposes for which the new aid is to be used, the terms on which it is to be made available, and the dates on which it is to be disbursed, will be settled between the two Governments. It is the understanding that so far as possible the new aid will be used for British goods and services on terms which accord with normal British aid policies, and that the aim should be to draw upon the greater portion during the latter part of the five year period.

The House will be asked in due course to make the necessary provision; in the meantime advances for urgent items will be sought from the Civil Contingencies Fund.

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