HC Deb 21 March 1967 vol 743 cc1433-4
22. Mr. Biggs-Davison

asked the Secretary of State for Commonwealth Affairs what action has been taken to protect the rights of British firms in Tanzania; and whether he will make a statement.

Mr. George Thomas

I would refer the hon. Member to my reply on 16th February. We have remained in close consultation with the British undertakings concerned, who are currently assessing their bids for compensation or negotiating their claims in Dar-es-Salaam with the Tanzanian authorities.

Mr. Biggs-Davison

The British people, under present management, must sympathise with the desire of Tanzania to control its own national economy, but can the hon. Gentleman say whether steps are being taken to acquaint the Tanzanian Government of the disastrous effect that this is likely to have upon the prospects for aid and investment in this and other African States? Can he further say whether the Tanzanians have the resources to give fair and effective compensation?

Mr. Thomas

We have been assured by the Tanzanian Government that they will pay full and fair compensation. We accept their word. On the question of the effect of this measure, there is no call on Her Majesty's Government to tell any other Government how to fulfil their economic policies.

Mr. Wood

First, is the hon. Gentleman convinced that the assurance that he has received can be carried out? Secondly, in view of the present diplomatic difficulties, how does he make these recommendations to the Tanzanian Government?

Mr. Thomas

On the second part of that supplementary question, we speak to the Tanzanian Government through our Canadian friends. As to the first part, we must take the word of the Government there that they will pay full and fair compensation. It is time enough to shout when that compensation is not forthcoming.