HC Deb 27 March 1961 vol 637 cc927-9
1. Mr. Hirst

asked the Lord Privy Seal what further representations have been made to the Egyptian Government to facilitate the transfer of British-held sterling at present frozen by orders of the Egyptian Government.

The Lord Privy Seal (Mr. Edward Heath)

I take it that my hon. Friend is referring to transfers into sterling under Article V (1) (a) of the Anglo-Egyptian Financial Agreement. The United Arab Republic authorities assured us on 12th March that, despite the severe shortage of foreign exchange from which the United Arab Republic is at present suffering, they will make every effort to facilitate transfers in full as soon as the necessary sterling becomes available. Meanwhile they have offered to give instructions for the immediate transfer of up to £E1,000 on account in each case. Her Majesty' Government have welcomed this offer on the clear mutual understanding that it does not imply their acquiescence in any derogation from the validity of the undertaking given by the United Arab Republic Government in the Financial Agreement. They have at the same time expressed the hope that the United Arab Republic Government will make every effort to ensure that the balance outstanding on any application will be transferred with the least possible delay.

Mr. Hirst

I thank my right hon. Friend for that reply, which shows some improvement. Will he instruct our Ambassador in Egypt that this matter should be pressed? It has been a continuing trouble for many years, and this is a very small amount of assistance, however welcome it may be.

Mr. Heath

We accepted the arrangement because we thought that it would be of benefit, especially to those who have small amounts waiting to be transferred.

2. Mr. Hirst

asked the Lord Privy Seal whether he is now in a position to announce a further distribution against assessed claims made to the Foreign Compensation Commission for property and other assets of British nationals taken over by the Egyptian Government.

Mr. Heath

As an Order in Council providing for an increase in the scale of interim distribution was only made as recently as last December, it is too early to consider providing for a further distribution until it can be seen more clearly what proportion of the fund is likely to be absorbed by the present payments.

Mr. Hirst

Is my right hon. Friend aware that I know only too well the circumstances of the order of December? It has accounted for only £7 million out of the £27½ million earmarked for this purpose, quite apart from the understanding which the Prime Minister gave in his speech on 16th March, 1959. The position is outrageous, and people are beginning to feel that the Government will not be facing their liabilities unless a greater contribution is made towards the claims.

Mr. Heath

It is true that approximately £6 million has been paid out by way of interim payments so far, but there tare still many claims to be assessed and, in addition, an unknown number of claims to be made as a result of desequestration.

Sir C. Mott-Radclyffe

Can my right hon. Friend give the House any idea of the date by which all these claims will be finally paid?

Mr. Heath

I should very much like to be able to give a final date by which this matter will be completed, but it depends upon the speed of desequestration of this property.

Mr. Hirst

In view of that unsatisfactory answer, I beg to give notice that I shall raise the matter in debate after the Easter Recess.