HC Deb 02 August 1961 vol 645 cc1444-5
1. Mr. Wall

asked the Secretary of State for Air whether he will make a statement about the extent of the preferential arrangements granted to Navy, Army and Air Force Institutes as against private firms operating in the Sovereign Base Areas in Cyprus.

The Secretary of State for Air (Mr. Julian Amery)

Within military stations and cantonments, it is the policy of the Services, in Cyprus as elsewhere, to permit private trading only to the extent that the facilities provided by N.A.A.F.I. need to be supplemented. Elsewhere in the Sovereign Base Areas private trading is permitted either where there is a military requirement for it or, if there is no military requirement, where the authorities of the Republic raise no objection under Appendix "O" to the Treaty. In addition, N.A.A.F.I. is, of course, permitted to import goods free of duty for sale to members of the forces to the extent provided in the Treaty.

Mr. Wall

While a N.A.A.F.I. monopoly in the military establishment is obviously justified, does not the Minister agree that to extend the monopoly to the whole of the base area is grossly unfair to both British and Cypriot traders who used to deal with all these families before Cyprus became a republic? Will he confirm that N.A.A.F.I. is not opening shops in the Republic itself?

Mr. Amery

I think that my hon. Friend did not quite catch what I said. Outside the cantonments but in the Sovereign Base Areas private trading is permitted in two sectors, either where there is a military requirement for it or where the authorities of the Republic raise no objection when there is no military requirement. In accordance with the provisions of the Treaty, there are certain N.A.A.F.I. establishments outside the base areas. As my hon. Friend knows, we have certain retained sites within the Republic.

Mr. H. Hynd

As so many of the families live outside the base areas, is it not for their convenience to have N.A.A.F.I. shops, for example, in Nicosia?

Mr. Amery

Yes. I think that they do benefit where there are retained sites outside. Where they live outside it is a great help to have N.A.A.F.I.

Mr. Wall

Does not my right hon. Friend's reply indicate that N.A.A.F.I. still has a veto, even though not a complete monopoly, in the base areas? Is it not a fact that many of these so-called private enterprise shops and kiosks which operate in the base areas are licensed by N.A.A.F.I.

Mr. Amery

I do not think that N.A.A.F.I. has a veto. It is in the hands of the Service commanders to decide whether there should be private trading either within the cantonments or outside them; that is, where there is no military requirement, where the Services are indifferent, the decision remains with the republican authorities in accordance with Appendix O of the Treaty.