asked the Secretary of State for the Colonies if he is aware of the rates of interest charged by banks in Tanganyika and in Kenya to the settlers; and, seeing that there is no legal rate of interest, will he take steps to sea that one is established?

I understand that the position as regards rates of interest charged by the Banks is much the same as when the East Africa Commission reported in 1925. As regards the second part of the question, I do not think that the matter is one for Government intervention, but in any event I am doubtful whether the fixing of a legal rate of interest would be to the advantage of the settlers.

Does my right hon. Friend realise that the development of these Colonies is being retarded through the inability of the settlers to obtain reasonable advances from the banks at a fair rate of interest?

Is not the right hon. Gentleman aware that the development of this country also is being retarded because of the high rates of interest charged by bankers?

The last supplementary question is not one that should be addressed to me. With regard to the first, I think that development would be retarded if an arbitrary rate were fixed at which the banks could not see their way to advance money.

Is there any reason to think that the rates of interest in these two countries are higher than in other East African countries?

No, I do not think so.