§ 39. Mr. Straussasked the Minister of Aviation whether he has given his approval to the guarantees given by the British Overseas Airways Corporation in respect of the instalment payments on the purchase of five Comet airliners by Middle East Airlines.
§ The Minister of Aviation (Mr. Duncan Sandys)I have now approved the proposal of British Overseas Airways Corporation for guaranteeing the purchase of four Comets by Middle East Airlines.
§ Mr. StraussDoes that mean that there is general Government approval? According to Press comments, the Minister has approved but the Treasury so far has not approved. Can the right hon. Gentleman make any comment about that?
§ Mr. SandysI naturally would not give my approval without consulting my right hon. Friend the Chancellor of the Exchequer.
§ Sir A. V. HarveyWhile approving this deal, may I ask why a transaction such as this cannot be dealt with by such an organisation as the Export Credits Guarantee Corporation, which was set up for exports?
§ Mr. SandysThis whole matter has been somewhat complicated by the fact that the proposal to which I referred in reply to the Question does not stand alone. It is part of a wider rearrangement of the commercial relations between B.O.A.C. and the Middle East Airlines.