§ 41. Mr. Chatawayasked the Lord Privy Seal whether, in his recent discussions with the Egyptian Minister of Economics and Finance, the question was raised of Egypt's continued failure to implement the agreement of 28th February, 1959, in relation to compensation for British subjects.
§ Mr. HeathThe United Arab Republic Government have fulfilled their obligations under Article IV of the Agreement of 28th February, 1959, which provided that they should pay a sum of £27½ million sterling as compensation to British subjects whose property had been Egyptianised or had suffered damage before the date of the Agreement as a result of Egyptian measures. The United Arab Republic Government have also duly paid £100,000 sterling to Her Majesty's Government as an interim payment under Article III (f) of the Agreement in respect of compensation due to British officials dismissed by the Egyptian Government in 1951.
There are, however, a number of outstanding questions other than that of compensation arising out of the Agreement, and it was made clear to the Egyptian Minister of Economics and Finance during his recent visit that Her Majesty's Government attach great importance to their early settlement.
§ Mr. ChatawayI am grateful to my right hon. Friend for that answer. Can he hold out any hope, for the many British people who still have not received compensation, that some action will be taken on this matter by the Egyptian Government in the near future?
§ Mr. HeathWe must distinguish between payment of compensation for Egyptianisation, which has been made by the Egyptian Government in its payment of £27,500,000 sterling, now being 29 distributed by the Commission under Orders in Council placed before the House, and the present difficulty, which is one of transfer of property existing in Egypt. Under the Financial Agreement, it was arranged that this should amount to £5,000, but it has been limited by agreement between ourselves to £1,000 owing to shortage of exchange. We are examining ways of dealing with this problem.