65.
Development Plans to be carried through in so far as non-financial
resources (that is to say, materials and manpower) permit. During
recent months a number of Colonial Development Plans have either
been submitted for the first time or have come under review. In
the light of these Plans and of certain more specific projects,
His Majesty's Government have examined the whole position afresh,
and it has been decided that a minimum programme of London
borrowing by Colonial Governments can be contemplated during
the next few years. Within this programme provisional
assurances have already been given to a few Colonial Governments
to the effect that approaches to the London market for loans up to a stated figure will be permitted in order to implement approved
Development Plans, provided this course is only adopted after all
other available sources of finance have been fully utilised. Such
assurances have been accompanied by warnings that applications will
have to be submitted to the Capital Issues Committce at the time,
and that the state of the market at any given moment cannot be
predicted.
4. In the meanwhile, certain urgent cases have arisen which have
been held to justify recourse to the London market in the more
immediate future. In the case of Trinidad, as you will be aware
a loan has already been floated. In this case prompt action was
impcrative, since considerable sums had been spent in anticipation
of local loans which had not materialised, since the whole financial
position of the Colony was threatened and since vital development
works were in danger of being left half complcted. Other urgent
cases are those of Malaya and East Africa. The Federation of Malaya
has an exceedingly heavy task of postwar reconstruction and has
accordingly been given certain assurances regarding access to the
London market next year on the basis of a reconstruction programme
recently submitted. Similarly, it has been agreed in principle that the East Africa High Commission should raise a substantial loan
on the London market during 1949 in connection with East African
transport