§ 29 and 32. Sir PHILIP DAWSONasked the Under-Secretary of State for Foreign Affairs (1) whether, in view of the fact that His Majesty's Government has agreed with the Rumanian Government the amount of compensation to be paid to the various British companies whose wells, petrol, and other effects were destroyed in November and December, 1916, by a British Commission acting under the instructions of His Majesty's Government, he can now state the amounts agreed upon;
(2) whether he is aware that, notwithstanding the fact that the amount of compensation payable to the various British companies, whose oil properties in Rumania were destroyed by a British Commission acting under instructions of His Majesty's Government, has been settled, the Rumanian Government disclaims any interest in the settlement of the compensation payable, unless the funds are provided by the guarantor, on the ground that the Rumanian Government acted at the request of His Majesty's Minister in Rumania made from time to 1018 time prior to the 3rd December, 1916, and that on that date a promise in writing to indemnify the Rumanian Government was given by His Majesty's Minister in Rumania to the Rumanian Foreign Minister; and whether, in view of the fact that there is no prospect of the Rumanian Government providing this compensation, His Majesty's Government, being ultimately liable in pursuance of their indemnity, will now provide these funds, and will see that they go to the British companies to whom they are payable?
§ Mr. McNEILLNegotiations are proceeding with the Rumanian Government which cover both the amount of compensation to be paid and the method of payment. Pending the conclusion of these negotiations, it is not possible for me to make a full statement on the matter, but I must not be taken as assenting to the accuracy of the statements contained in the hon. Member's question. Briefly, the position is that the Rumanian Government is responsible for paying compensation for the damage in question, and His Majesty's Government is under no liability (direct or indirect) to make any payment to the British or other companies concerned. It was agreed in 1921 between the British and the 'Rumanian Governments that the indemnification promised to the Rumanian Government shall take the form of the cancellation of part of the Rumanian War Debt to this country.