Mr. DavidWatkins asked the Secretary of State for Commonwealth Relations why no further defence aid has been offered to the Government of Malaysia this year; and if he will make a statement.
§ Mr. BottomleyHer Majesty's Government have not offered further defence aid to Malaysia because of our own current financial difficulties. This was explained to Mr. Tan Siew Sin, the Malaysian Finance Minister, when he visited London last month. There is no hidden political reason for this refusal.
Although we have been unable to make a further offer, considerable sums are still available under earlier grants. Of the grant of £20 million made for the period 1963–65 rather more than £2 million remains to be spent. In addition to this sum the United Kingdom will be providing about £2.5 million this year for the costs of British Service personnel seconded to the Malaysian Forces, and for the raising of a complete infantry battalion. Economic aid for civil purposes will also be in the neighbourhood of £5 million.