TANZANIA: NATIONALISATION OF BRITISH ASSETS (Hansard, 22 February 1967)

§ VISCOUNT BRIDGEMAN
My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.

§ THE PARLIAMENTARY UNDER-SECRETARY OF STATE FOR COMMONWEALTH AFFAIRS (LORD BESWICK)
My Lords, the Tanzania Government announced on February 6 the immediate nationalisation of all banks, including three British banks. Subsequently it was announced that 15 import-export firms and millers, some of which are British owned, were being nationalised and that a 60 per cent. interest was being compulsorily acquired in six other firms, four of which are British. British insurance interests, which are widespread, are, we understand, also affected. There was no prior notification of the Tanzania Government's intention to take these steps. Her Majesty's Government are in close and continuing touch with the banks and the other British companies which have been affected by these new measures.
Important questions arise as regards compensation and the future of the employees of these firms. In accordance 706 with the usual requirements of international law and practice, compensation should be prompt, adequate and effective, and Her Majesty's Government have noted the Tanzania Government's public statement that full and fair compensation will be paid. We have asked the Government of Tanzania, through the Canadian Government who are the Protecting Power, urgently for information on the relevant legislative and administrative measures, in particular of the provisions and proposals relating to compensation and as regards the future of expatriate staff. The Tanzania Government have also been asked for confirmation of the reported statement that Mr. Jamal, the Minister of Finance, intends to visit this country soon for discussions with the Head Offices of the British banks concerned.

§ VISCOUNT BRIDGEMAN
My Lords, in thanking the noble Lord for his reply, may I say how important those who have interests in Tanzania consider it that Her Majesty's Government should keep in the closest possible touch with events in that country, more especially as reliable information as to the exact way in which these recent decisions of the Tanzania Government are being implemented is hard to obtain?

§ LORD BESWICK
My Lords, I quite agree with the noble Viscount, and I very much appreciate the ready way in which he has volunteered to give information which comes to him. As he knows, we are in close touch with the firms concerned. I saw the chairman of the East Africa and Mauritius Association yesterday, and any assistance we can give we shall, of course, be ready to give.

§ LORD RITCHIE-CALDER
My Lords, is my noble friend satisfied that, in the absence of diplomatic relations, the attitude of the British Government is fully understood in Tanzania?

§ LORD BESWICK
My Lords, the absence of diplomatic relations is one of the difficulties of this situation. I am grateful to my noble friend for giving me the opportunity of saying that we do not, and would not, challenge the right of Tanzania or any other country to decide the basis of its economy. But the procedure by which the property or the interest is acquired is obviously of vital 707 interest to us and also to those who may have investment capital to offer in other parts of that continent. I would emphasise that it would be in the best interests of all countries in Africa that Tanzania fulfils her declared undertaking to compensate fully and effectively, and honour the undertakings to staff involved.

§ LORD TWEEDSMUIR
My Lords, can Her Majesty's Government give us the assurance that they will satisfy themselves, before they accept a settlement, that such compensation as is paid is freely negotiable outside Tanzania?

§ LORD BESWICK
My Lords, the noble Lord will recognise the phrase I used from international law on this subject, namely, that the compensation should be prompt, adequate and effective. If it is effective,that would fulfil the requirement to which the noble Lord calls attention.