HC Deb 14 June 1966 vol 729 cc1216-7
2. Mr. Edward M. Taylor

asked the Secretary of State for Commonwealth Relations what information he has regarding the operation of transport undertakings managed jointly by Southern Rhodesia and Zambia.

Mrs. Hart

With permission, I propose to circulate a full reply in the OFFICIAL REPORT. But I shall be glad to answer now any specific point which the hon. Gentleman has in mind.

Mr. Taylor

While I am grateful to the hon. Lady for her reply, may I ask whether she can give an assurance that the Government will not encourage the Zambian Government to indulge in any policies which could lead to a crippling of this joint venture after normal relations have been restored?

Mrs. Hart

This is a matter of considerable difficulty for the Zambian Government. We regard it as a matter entirely for the Zambian Government itself to decide.

Following is the reply:

The two public transport undertakings operated jointly by Rhodesia and Zambia are Rhodesia Railways and, with Malawi, Central African Airways. Rhodesia Railways has been operating at a loss and their position has been further aggravated by an acute shortage of cash in the Rhodesia section. The Zambian Exchange Control Authorities have refused to permit transfers of cash from Zambia to Rhodesia. Rhodesia Railways some weeks ago announced a new system of payments under which Zambian freight, carried over the Rhodesian section of the railway, would have to be paid for in advance. The Zambian Government obtained an injunction in the High Court of Zambia restraining Rhodesia Railways from enforcing its new charges. The Zambian Exchange Control Authorities issued instructions having the same effect. The illegal Board of the Reserve Bank of Rhodesia then issued contrary directions, under exchange control regulations introduced in Rhodesia since I.D.I., and sought an injunction in the High Court of Southern Rhodesia restraining Rhodesia Railways from disobeying these directions. The legal Board of the Reserve Bank of Rhodesia, under Sir Sydney Caine, took steps to dispute both the competence of the illegal Board and the validity of the regulations under which they were purporting to act. On 13th June, however, the action brought by the Reserve Bank of Rhodesia was discontinued on the basis that the Railways would be subject to an order having the same effect issued by the Minister of Transport in the illegal régime in Rhodesia, under which freight from Zambia, through Rhodesia, may be impounded unless payment arrangements acceptable to the Rhodesian régime have been made. The Zambian Government, on 10th June, introduced Government regulations which will empower an Administrator of Railways, appointed by the President, to control the movement of locomotives, rolling stock and railway equipment from Zambia to Rhodesia. It is understood that no copper is at present being railed from Zambia through Rhodesia and that some 8,000 tons of copper are at present held up on the Rhodesian section of Rhodesia Railways. Coal from Wankie is believed to be moving normally. The position regarding other imports from Rhodesia to Zambia is obscure. The operations of Central African Airways have been curtailed as the result of the refusal of the East African Government to permit any C.A.A. aircraft registered in Salisbury to Operate in their territories.