HC Deb 18 July 1962 vol 663 cc420-2
8. Mr. Wall

asked the Lord Privy Seal if he will make a statement about Her Majesty's Government's recent discussions with the Egyptian Government about a final settlement over British property that has been Egyptianised, desequestrated and more recently resequestrated.

Mr. Heath

There have been no recent discussions with the United Arab Republic Government on property Egyptianised in the period 1956–1958. The compensation of £27½ million for this property provided for in Article IV of the Financial Agreement of 1959 was paid in full by the U.A.R. Government in 1959.

The present discussions in Cairo concern the release and transfer of British property and assets which were de-sequestrated as a result of the Financial Agreement. I cannot yet make any statement about them. As I told my hon. Friend on 4th July, the House will be informed as soon as a conclusion is reached.

As regards British property re-sequestrated at the end of 1961, I regret that I can as yet add nothing to the reply I gave my hon. Friend on 1st May.

Mr. Wall

Is it not a fact that the terms of the Egyptian Financial Agreement have not yet been implemented by the Egyptian Government, namely, the repatriation of £5,000 per head, and furniture, and so on? Will not my right hon. Friend agree that the new wave of sequestration at the end of last year is quite unjustifiable? When can we expect a settlement of this matter which has been dragging on for several years?

Mr. Heath

I was anxious in my Answer to distinguish between three classes which have been dealt with under this agreement mentioned by my hon. Friend. On the question of the amount of compensation for Egyptianisation, it has been paid by the United Arab Republic, and as a result of Orders passed by the House percentages have been paid to the claimants. As far as the second group of desequestrated property is concerned, there have been, as the House will know, a number of difficulties about this, and we are in negotiation. I hope it will not now be long before I can make an announcement on further arrangements to the House. As far as the property reseques-trated is concerned, that, of course, is mainly property of Egyptians and of only a small number of British personnel. We have a great interest in them. Arrangements under the decree of sequestration are known, although they have not yet been completed.

Mr. Hirst

Yes, but does not my hon. Friend really appreciate that the Government's record in this matter of Egyptian treatment of British nationals is utterly deplorable? When are we going to reach the stage at which this matter can be dealt with justly, fairly and firmly, and not in this piecemeal, cheeseparing way, going on year after year in this unsatisfactory way?

Mr. Heath

I am as anxious as my hon. Friend is to see the final settlement of these claims, but he will appreciate that there are a number of claims which cannot yet be assessed because the amount of damage suffered under sequestration is not yet known. It is essential for this process to be completed before the financial amounts can be calculated and the claims paid.