HC Deb 08 May 1952 vol 500 cc540-2
33. Mr. Woodrow Wyatt

asked the Chancellor of the Exchequer why Her Majesty's Government have asked the Burma Government to reconsider their request to postpone payment of the first instalment of the Burma debt to Britain.

Sir A. Salter

I would refer the hon. Member to the reply given to the hon. Member for Enfield, East (Mr. Ernest Davies), on 24th April.

Mr. Wyatt

Is not the right hon. Gentleman aware that the amount concerned is quite relatively small; that the Burma Government have been engaged in trying to put down Communist disorders, which have been very adversely affecting their internal revenue: and that this niggardly attitude on the part of Her Majesty's Government is regarded by the Burma Government as a complete reversal of the friendly policy followed by the Labour Government?

Sir A. Salter

The fact that the sum involved, about £1⅓ million, is comparatively small, does not make it more difficult for the sum to be paid. I would remind the hon. Gentleman that the sum now in question is the first instalment due under an agreement made by the previous Government with the Burma Government. The hon. Gentleman seems to assume that such an agreement should be allowed to lapse until there is an exceptional reason for observing it. We take rather the view that it should be observed unless there is an exceptional and new reason for modifying or changing it.

Mr. Wyatt

Does the right hon. Gentleman not realise that this will make it infinitely more difficult for the Burma Government to deal with the Communist insurrection now going on in Burma?

Sir A. Salter

In the last Burma Budget there was a surplus, and there is an estimated trading surplus now. In those circumstances, although we are awaiting the reply of the Burma Government, we have not as yet seen a sufficient reason why this agreement made, as I say, by the previous Government with the Burma Government should not be kept.

44. Mr. Ernest Davies

asked the Chancellor of the Exchequer whether the Government of Burma has now paid the instalment on her debt to the United Kingdom due on 1st April.

Sir A. Salter

No, Sir.

Mr. Davies

Is it not desirable to maintain friendly relations with Burma and to assist them in their fight against Communism? Cannot the Minister take a less uncompromising attitude towards this matter and invite the Burma Government to send a financial mission to London to discuss it, before he behaves in such a cavalier fashion?

Sir A. Salter

We are still awaiting a reply from the Burma Government. I do not think there is anything I can add, pending the receipt of that reply, to what I have said already.

Mr. F. J. Erroll

Have the Burma Government given any indication when they are likely to pay this instalment?

Sir A. Salter

We have not yet had a reply to our representations.

Mr. Philip Noel-Baker

When the Burma reply is received, will the Government treat it in the most sympathetic spirit, in view of the very gallant stand made by the Burma Government against Communism since 1947?

Sir A. Salter

We shall, of course, consider very carefully what we hear from the Burma Government. We have now in Rangoon a representative of Her Majesty's Treasury.

Mr. Wyatt

Has the Minister consulted the Foreign Office? When I put this Question to the Foreign Office originally it was transferred to the right hon. Gentleman. As this is much more a matter for the Foreign Office than for the Treasury, is it not better to consult the Secretary of State for Foreign Affairs?

Sir A. Salter

I have done so.