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Malawi (Aid)

Volume 722: debated on Tuesday 21 December 1965

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75.

asked the Minister of Overseas Development if she will make a statement on the recent financial talks with the Government of Malawi.

Following financial talks held in London from 29th November to 15th December between the Governments of Britain and Malawi, the British Government have undertaken to provide up to £8 million development aid to Malawi over the three years 1966 to 1968. This includes a grant of £1 million for the new University of Malawi. The remainder of the £8 million will be in the form of interest-free loans. In addition, budgetary aid of up to £5·3 million in the form of a grant will be provided for 1966; and further budgetary assistance up to a maximum of £5·3 million a year will be made available in the same form in 1967 and 1968, the actual amount to be fixed in annual negotiation. The Malawi Government have accepted this offer, which is in addition to technical assistance and loans already promised towards Malawi's share of compensation and commutation payments to officers designated under the Overseas Service Aid Scheme, together currently running at over £1·5 million a year.The detailed purposes for which the new development aid is to be used will be the subject of discussion between the two Governments: over £2 million has already been allocated to agreed projects in 1966.Parliament will in due course be asked to provide the necessary funds. In the meantime, advances will be sought from the Civil Contingencies Fund if necessary.