§ 52 and 53. Colonel Crosthwaite-Eyreasked the Chancellor of the Exchequer (1) the total of the sterling balances outstanding to the Egyptian Government at the end of the Japanese war:
(2) the total amount of sterling balances released to the Egyptian Government since the end of the Japanese war to the latest convenient date.
§ Mr. GaitskellI will, with the permission of the hon. and gallant Member, answer these two Questions together.
§ Colonel Crosthwaite-EyreOn a point of order. These two Questions are very different. May I have a separate answer to each of them?
§ Mr. GaitskellI will give the answer, and when the hon. and gallant Member has heard it, he will perhaps tell me whether he wishes me to repeat it.
As the House is aware, it is not our practice to disclose details of our sterling liabilities to individual countries. It has, however, been brought to my notice that figures of Egypt's sterling balances, which appear to have been secured from the National Bank of Egypt, have recently been published in the Press. These figures show that Egypt's total sterling balances on 31st December. 1945. amounted to £387 million, that between 31st December, 1947, and 30th September, 1950, her blocked balances fell by £81.8 million, and that her total balances on the latter date amounted to £272.2 million.
§ Colonel Crosthwaite-EyreIn thanking the Chancellor for that answer, may I ask him whether the fall he has mentioned in the sterling balances is entirely accounted for by the relaxations from those balances made under the Anglo-Egyptian financial agreements, or whether the balances have been drawn on from any other source whatever?
§ Mr. GaitskellThey have been made under the agreements with the Egyptian Government.
§ Mr. S. SilvermanCan my right hon. Friend say how much, if any, of the released balances were used in the purchase of tanks and jet aircraft?
§ Mr. SpeakerThat has nothing to do with this Question.
§ Mr. LowWill the Chancellor explain why it was he felt completely unable to give a similar answer to my similar Question yesterday?
§ Mr. SilvermanOn a point of order. When a Minister gives an answer, showing that certain moneys have been released, it is surely not irrelevant in those circumstances to ask what they were used for?
§ Mr. SpeakerThe Question on the Order Paper was a simple one about how much money has been released. If the 946 hon. Member wishes to do so, he can put down a Question asking how the money has been spent.
§ Mr. GaitskellIf I may reply to the hon. Member for Blackpool, North (Mr. Low), I would say that I was not aware of the Press release when the other Question was answered. I felt that in the circumstances we had better change our mind.
§ 54. Colonel Crosthwaite-Eyreasked the Chancellor of the Exchequer if he will give an assurance that no further releases will be made by His Majesty's Government of sterling balances to the Egyptian Government until counter-claims have been entered by this country for services rendered by this country to Egypt during the recent war.
§ Mr. GaitskellNo, Sir.
§ Colonel Crosthwaite-EyreIn view of the present attitude of the Egyptian Government, is the Chancellor still not willing to implement the policy of His Majesty's Government to enter these counter-claims? Surely this is the time to do it, in view of the statement by the Egyptian Government that they wish to reach a final settlement of these balances? What other opportunities has the right hon. Gentleman to do so?
§ Mr. GaitskellI am about to begin negotiations on these balances, and I should prefer not to have my hands tied in advance by making any statement of that kind.
§ Colonel Crosthwaite-EyreSurely His Majesty's Government's hands are tied. The Government have said that they will enter these counter-claims. Does the Chancellor now mean to implement the policy of the Government?
§ Mr. GaitskellI cannot accept that it has ever been our policy to put in counterclaims.