§ 34. Mr. Sorensenasked the Lord Privy Seal what further steps are being taken to improve Anglo-Egyptian relations; and what are the main unsettled issues that impede improvement.
§ Mr. HeathWe are trying to achieve a friendly and businesslike relationship with the United Arab Republic. Her Majesty's Ambassador saw President Nasser on 25th February and spoke frankly of our relations and mutual interests. The discussion helped to remove misunderstandings on either side and I hope that such exchanges will continue.
§ Mr. SorensenCould the right hon. Gentleman reply to the last part of my Question and name specific issues which, in his opinion, are still impeding some kind of reconciliation?
§ Mr. HeathThere are certain things such as the matter I mentioned in reply to my hon. Friend the Member for Bromsgrove (Mr. Dance), and the outstanding points about the Financial 501 Agreement of 1959, together with questions arising out of the nationalisation law of last July, affecting British citizens. There are also further questions arising out of the re-sequestration of some British property towards the end of last year. These are some of the practical matters which are causing difficulties between us. The Minister of Finance of Egypt was in London a short time ago, when I was able to have a full discussion with him about these points. I hope that this may lead to a settlement of the outstanding issues.