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workers to fill them. The plans for improved technical education now being carried through by the Maltese Government should increase the number of skilled workers coming forward. Thiagoule elproblem of the local labour supply and, at the same time, improve the prospects for skilled workers who emigrate. The prospects for emigration are, in any case, greatly dependent on the needs and policies of the receiving countries. In this connection, some witnesses expressed concern about the present limitation of the numbers of Maltese admitted by other countries and about the signs of a further reduction. We recommend that both the Maltese Government and Her Majesty's Government in the United Kingdom should continue to give a high priority to the problems of emigration.
57. The broad conclusion to which our enquiries have brought us, then, is that there are prospects of economic development through the better use of available resources, including improved skills. Progress may be substantial, by comparison with present standards; but over the whole range of the economy we cannot say that we are convinced that the absolute rate of advance is likely to be as rapid as some of the witnesses were prepared to forecast. The rate of progress will depend on a number of unknown factors, including the success achieved by the Maltese Government in extending the necessary facilities by a carefully worked out and flexibly operated plan of basic development and the extent to which local initiative, enterprise and skill can be encouraged and developed. Moreover, industrial expansion will depend in part on Malta's ability to attract United Kingdom and other firms to establish local factories, and this in turn will be determined largely by the firms' own assessment of the advantages of Malta as a centre of production. Any rapid rise in costs would, in present circumstances, lessen the prospects of economic expansion. The consequent need for wage restraint in Malta was fully recognised in evidence before us by the Maltese Government and by representatives of the Malta General Workers Union.
United Kingdom Aid
58. It is clearly beyond the capacity and means of the Maltese Government to carry out a development programme of the size and scope required to meet the present situation. Further substantial help will have to be provided by Her Majesty's Government in various forms, including technical assistance in surveys of resources and in preparing development plans, assistance and advice on technical education and technical services and financial aid, as may prove necessary.
59. Her Majesty's Government in the United Kingdom is this year providing between £4 and £5 millions towards Malta's capital and current needs. In the agreed statement on economic policy issued at the end of the June talks (see Appendix G) Her Majesty's Government undertook to continue financial aid over the next few years; first, to promote new capital development and, secondly, to assist, as may prove necessary, towards balancing the budget and improving social services. Although the amount of this aid has not yet been determined, we understand that a continuation of aid at about present levels for the next few years is not considered by Her Majesty's Government to be unreasonable. It seems to us to be unlikely that more money could be spent productively in Malta during these years because of the limits set by the skilled labour force available, and the building and constructional capacity of the Islands. The rate of needed assistance towards capital expenditure may possibly increase gradually thereafter; but a decision on requests for assistance towards recurrent expenses will have to depend on the success which is achieved in promoting