Written Answers
HOUSE OF COMMONS
17
time they recognise that the Malayan Governments are not in a position to finance such a scheme entirely from their own resources, and His Majesty's Gov- ernment have accordingly agreed to con- tribute a sum of £10,000,000 by way of a free grant, towards the expenditure in- volved. As regards the remaining ex- penditure, His Majesty's
His Majesty's Government Government have agreed to stand behind the Malayan Governments up to a maximum additional liability of £35,000,000, on the under- standing that the latter will meet the cost of the scheme directly from their own resources to the greatest possible extent. In so far as the Malayan Governments may prove unable to meet the liability in the direct manner indicated above, it would be met by interest-free loans from His Majesty's Government to the Malayan Governments. The latter have envisaged that the remaining £10,000,000 out of the total of £55,000,000 should be met from the proceeds of Japanese reparations. In the event of any such proceeds falling short of £10,000,000, and in the event of the Malayan Governments finding them- selves unable, in spite of all efforts, to meet the balance directly from their own resources, further discussions with His Majesty's Government would take place.
3. Having regard to the financial diffi- culties with which the United Kingdom is itself faced as a result of losses incurred during the war, and having regard to the heavy burden which the United Kingdom taxpayer is called upon to bear, this con- tribution by His Majesty's Government towards the solution of Malaya's problems represents a great effort and a very real proof of sympathy and good will.
4. The Governments of the Federation of Malaya and Singapore will now draw up a detailed scheme within the frame work outlined above. Particulars of the scheme will be announced shortly, in order that it may be put into practice as rapidly as possible. Actual expenditure, however, will inevitably be spread over a considerable period, and, moreover, it is essential, both from the point of view of limiting calls on the productive capacity of the United Kingdom at this critical time and of avoiding local inflation, that the bulk of the expenditure should not be too suddenly incurred. In these cir- cumstances, it has been agreed that His Majesty's Government should not be called upon for assistance to the extent of
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Written Answers
more than £6,000,000 in 1949 (the year in which payments are expected to com- mence), and that the same limit should be imposed in 1950 and 1951. The Malayan Governments have also agreed to keep a close watch on the level of ster- ling balances held on Malayan account in the United Kingdom and to consider taking such action as may be necessary to maintain these balances, by way of continuing or extending limitations on imports.
5. His Majesty's Government have also taken this opportunity of informing the Malayan Governments that, as further evidence of good will, they will not seek any contribution from the latter in respect of the costs of the Military Administration amounting, in all, to over £7,000,000. Further discussions will take place be- tween His Majesty's Government and the Malayan Governments on the apportion- ment of the expenditure incurred on goods supplied by His Majesty's Government to
the territories after civil Government had been re-established.
6. His Majesty's Government have agreed to ask Parliament for the necessary authority to implement the above
decisions.
HONG KONG STATEMENT
1. In October, 1942, a declaration was made on behalf of His Majesty's Government to the effect that it would be the general aim of His Majesty's Govern- ment after the war that, with a view to the well-being of the people and the re- sumption of productive activity, property and goods destroyed or damaged in the Colonial Empire should be replaced or repaired to such extent and over such a It was added that, if the resources of any period of time as resources might permit.
part of the
the Colonial Empire were insufficient to enable this purpose to be achieved without aid, His Majesty's Government would be ready to give what assistance they could in conjunction with such common fund or organisation as might be established for post-war reconstruction.
2. In the light of above declaration Government of Hong Kong appointed a Commissioner to make an expert examina- tion into the problem of war damage compensation. As a result of his findings, Government is satisfied that even were the U.K. in a position to pay part of cost,
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