§ 25. Mr. Gammansasked the Secretary of State for Foreign Affairs on what date he first received a request from the Government of Burma for a further loan to enable the oil industry to be opened up again; and to what extent he has insisted as a prerequisite to continuing negotiations in this matter that guarantees shall be given by the Government of Burma that no more expropriation or nationalisation of British interests in Burma shall take place.
§ Mr. Ernest DaviesIn a letter of 28th March, 1951, the Burmese Prime Minister asked my right hon. Friend the Prime Minister for favourable consideration of a Burma Government note of 20th March, requesting a loan of £5 million to finance the share they would like to take up in an enterprise, which it is proposed should be established jointly with the interested oil companies, to exploit the oil industry in Burma.
The protection of British interests is a constant object of His Majesty's Government's policy, and the hon. Member may rest assured that this will not be lost sight of in the present case. It would, however, scarcely be appropriate in the context of the oil negotiations to seek guarantees of the general nature suggested.
§ Mr. GammansIn view of the great need for capital investment within the British Empire and our scarcity of capital surely it is not unreasonable for this House to insist that before any further money is given to Burma we should get effective guarantees that any British interests in that country will not be expropriated, as they have been in the past?
§ Mr. DaviesThe policy of His Majesty's Government in that respect is well known. Where nationalisation takes place, we expect reasonable compensation.
§ Mr. PatonIs it not the case that oil may be just as difficult to obtain as capital, and should we not do all we can to encourage Burmese production?