§ Mr. Rowlandasked the Minister of Overseas Development if he will make a statement on the recent financial talks with the Government of Malawi.
§ Mr. OramFor 1967, the British Government have offered to provide the332W Malawi Government with a grant of up to £4.6 million budgetary aid, and £2.8 million (including £0.3 million carried forward from 1966) for development, mainly in the form of an interest-free loan. These amounts form part of the British Government's existing three-year commitment of aid to Malawi, which includes £8 million of development aid, and budgetary aid to be negotiated annually within a ceiling of £5.3 million per annum. Details were given by my right hon. Friend's predecessor in answer to a Question by my hon. Friend on the 21st December, 1965.—[Vol. 722, c. 403–4.]
If the amount of budgetary aid actually required should prove to be less than the amount offered for 1967 or 1968, the British Government have offered, as an added incentive to reduce Malawi's dependence on external budgetary assistance, to make available to the Malawi Government 50 per cent. of any such savings arising in those years, in the form of an additional interest-free loan for approved development projects in the following year.
The British Government have offered to provide an additional interest-free loan of £810,000 to enable the Malawi Government to meet its share of the increased costs of compensation payments to officers designated under the Overseas Service Aid Scheme.
Parliament will in due course be asked to provide the necessary funds.
The British Government have also agreed to waive certain contingent liabilities of the Malawi Government arising from the costs of the 1914–18 East African campaigns.
The two Governments will hold further discussions in a year's time about the level of budgetary and other aid for 1968, and also the question of aid for subsequent years.