HC Deb 09 February 1965 vol 706 cc173-4
7. Sir J. Barlow

asked the Secretary of State for Commonwealth Relations what representations he has made to the Government of Ceylon to permit the transfer of profits in British registered companies from Ceylon to Great Britain; and whether he will make a statement.

24. Sir F. Bennett

asked the Secretary of State for Commonwealth Relations what has been the result of the representations made to the Ceylon Government regarding the continuing moratorium on the payment of overseas dividends by British companies, and the consequences of the imposition of new taxation on British tea companies.

Mr. Cledwyn Hughes

As my right hon. Friend told the hon. Member for Wokingham (Mr. van Straubenzee) on 1st December, he made representations to the Ceylon Finance Minister personally during November about all those measures in the Ceylon budget which have had an adverse effect on British interests.

The position remains unsatisfactory. But, as the House will be aware, the Ceylon Parliament was dissolved in December following the defeat of the Government, and a General Election is due to be held on 22nd March. We intend to make further representations to the new Government after the election if the position remains unsatisfactory.

Sir F. Bennett

From what the hon. Gentleman says, he presumably hopes for the emergence in Ceylon of a less Left-wing and refractory Government but, in any case, will he bear in mind the desirability of pointing out in every way to Ceylon that if she needs overseas investment she is at present going just about the worst possible way of getting it?

Mr. Hughes

The hon. Gentleman can rest assured that we shall make the strongest possible representations to whatever Government may emerge from the election.

Mr. Tilney

Will the hon. Gentleman bear in mind the very favourable balance of payments that Ceylon has with this country; and also the fact that there are many widows of those who helped that country's economy in the past and who are entirely dependent on dividends?

Mr. Hughes

We are fully aware of that. My right hon. Friend and I made personal representations to Dr. Perera when he was here, and stressed to him the gravity and the seriousness of these cases.