HC Deb 21 March 1957 vol 567 cc543-5
34. Mr. H. Wilson

asked the Chancellor of the Exchequer if he will make a statement on the application for an American-controlled company to take over a controlling interest in the shares in the British South West Africa Company.

Mr. Birch

The Tsumeb Corporation, a South African mining company controlled in the United States, was given permission under the Exchange Control Act to make an offer for the shares of the South West Africa Company. It is our policy to permit such investment in the sterling area unless it would result in any actual disadvantage.

Permission was given on the condition that if the Tsumeb Corporation's offer were accepted it intended to maintain and if possible increase the output of vanadium from the mine which would, of course, continue to be available to United Kingdom purchasers for sterling; that it intended to use its resources to develop the properties of the South West Africa Company, and that it would not seek to transfer the domicile of the company outside the United Kingdom.

As the House will be aware, however, a British mining group, headed by New Consolidated Gold Fields, has now obtained control of the South West Africa Company.

Mr. H. Wilson

This Question was put down before the last development referred to by the right hon. Gentleman, but in view of this history—upon which we have been pressing the Government for several weeks—and in view of the disastrous consequences of the Government's decision in regard to Trinidad last year, will the right hon. Gentleman —despite the happy ending in this case, which we all welcome—take another look at these applications and see that a much stricter view is taken on the part of the Treasury of applications by American companies to buy up vital Commonwealth assets?

Mr. Birch

I realise that the Question was put down before this development took place, but a question of general policy is involved here. As the right hon. Member will remember, at the conclusion of the conference which took place in September, 1949, between the Americans, the Canadians and ourselves, a statement was put out that it was of vital importance to increase dollar investment in the sterling area. We are constantly urging the Americans to follow good creditor policies, and it would be wrong to be too obstructive about investments, provided that we are confident that no national interest is prejudiced. In this case, given the conditions, which were agreed, we were confident that no national interest was prejudiced.