HL Deb 30 July 1956 vol 199 cc380-4

3.55 p.m.

THE MARQUESS OF SALISBURY

My Lords, perhaps your Lordships will allow me to intervene to make a statement on the Suez Canal which is being made in another place by my honourable friend the Prime Minister.

As a first step, measures have been taken, with effect from last Friday, in relation to Egypt's sterling balances and the assets of the Canal Company. An order has been made under the Exchange Control Act which has the effect of putting Egypt out of the transferable account area and generally making all transactions on Egyptian-controlled sterling accounts subject to permission. Secondly, a direction has been made under Regulation 2 (a) of the Defence (Finance) Regulations safeguarding the securities and gold of the Suez Canal Company.

The Governments of the Commonwealth countries were given early information of the situation as it affects this country and the Commonwealth, and close touch is being maintained with them.

Yesterday afternoon, the French Foreign Minister, M. Pineau, and Mr. Murphy of the American State Department came to London for consultations with Her Majesty's Government. My right honourable and learned friend the Foreign Secretary took part in discussions with them which lasted until a late hour last night. They are continuing to-day. I cannot, therefore, say more about them at this stage.

This much, however, I can say. No arrangements for the future of this great international waterway could be acceptable to Her Majesty's Government which would leave it in the unfettered control of a single Power which could, as recent events have shown, exploit it purely for purposes of national policy.

VISCOUNT ALEXANDER OF HILLS-BOROUGH

My Lords, I am much obliged to the noble Marquess, the Leader of the House, for passing this statement to your Lordships. The position which has arisen in Egypt is obviously one of great concern, not only to ourselves and to our partners in the original agreement with regard to the Suez Canal but to the whole of the mercantile nations of the world. I am sure that it ought to be felt in Egypt that the general reaction of this country is very seriously against the step which has been taken. Various comments have been made from time to time about there being a kind of precedent in Persia. I am not going to say anything to-day about the method which has been adopted by the Egyptian Government, but the fact that the Suez Canal is an international waterway puts it in a very different category. I hope that the Government and that our colleagues in the company, and others who are interested in the tremendous effect which this may have upon world commerce, will be able to get agreed action which will lead to the desirable result of the traffic passing through that vital waterway being always internationally controlled.

LORD REA

My Lords, I think the most useful comment I can make from these Benches is to say that I will make no comment, except to remark that we agree with what has fallen from the lips of the noble Viscount the Leader of the Opposition. I assure your Lordships that we on the Liberal Benches, as I am sure noble Lords in every part of the House, wish the Government well and will fully support them in the steps they are now taking.

LORD BALFOUR OF BURLEIGH

My Lords, I was going to continue the debate on the Finance Bill. Is that the pleasure of the House?

VISCOUNT STANSGATE

My Lords, I want to ask the noble Marquess a question. Parliament is separating for a few months, and is it possible that we may meet again to find that great decisions have been made in this matter without consultations with Parliament?

THE MARQUESS OF SALISBURY

My Lords, I did not quite hear the noble Viscount's question. Is he suggesting that there should be a debate before the House rises?

VISCOUNT STANSGATE

My Lords, I was not suggesting that. But I pointed out that these decisions are momentous, and suggested that Parliament should be consulted in some way before they are made.

THE MARQUESS OF SALISBURY

My Lords, I think the position is that I have no suggestion to make that Parliament should not rise on the date as fixed but, of course, the usual arrangements will be made for Parliament to be called in the event of any emergency requiring it. I can assure the noble Viscount that the Government will take care of that.

VISCOUNT STANSGATE

My Lords, that is common form. The noble Marquess will realise that these are immense decisions. Is it not possible that we shall be away from Parliament and find that the matter has been settled without the consent of Parliament having been obtained?

THE MARQUESS OF SALISBURY

My Lords, I think it may be taken as certain that in a matter of this importance the Government will take every step to see that Parliament is consulted on general questions. I hope the noble Viscount will not press me further on the point to-day. As I say, I think a great deal depends on further developments, and perhaps on the result of the conversations taking place to-day. I would rather not say more now.

LORD HANKEY

My Lords, I was going to ask much the same question as that asked by my noble friend Lord Stansgate, as to whether we should get any more information. Memories of some of these Egyptian proceedings are riot very pleasant. In the case of the Sudan, there was a strong feeling that the House had not had an opportunity to express itself on the basis of knowledge until virtually a decision had been taken. Again, on the question of the Suez Canal, I myself gave the Government the most serious warnings, first, privately in February, 1953, and then in debate here in your. Lordships' House, on (I think it was) December 7, 1953. All the debates we had took place without real knowledge. Our knowledge is based on The Times reports and so on. Could the Government give us some assurance that we shall not be faced with such a circumstance again?

THE MARQUESS OF SALISBURY

My Lords, of course, nothing can take away from any Government their executive responsibility, and every Government would be determined to shoulder that. But I am certain that it is not the desire of Her Majesty's Government to by-pass Parliament.

VISCOUNT ALEXANDER OF HILLS-BOROUGH

My Lords, if the noble Marquess can, I should like him to give an assurance to the House that the fullest possible statement of the position, as it then exists, will be submitted to the House before we rise for the Recess. With that in view, I suggest that I put down a Private Notice Question each day when we meet to see what the state of the matter then is.

THE MARQUESS OF SALISBURY

My Lords, as I say, a great deal depends on what are the developments. I feel certain that it will be possible to say something to the House. I think it is a fair suggestion, and if the noble Viscount puts down his Private Notice Question, I will, of course, answer it as soon as is possible.

VISCOUNT STANSGATE

My Lords, could my noble friend put the Question down in a form which will permit of comment by other noble Lords?

THE MARQUESS OF SALISBURY

My Lords, I understood that it was the noble Viscount, Lord Alexander of Hills-borough, and not I, who was to put down the Question.

LORD HORE-BELISHA

My Lords, I should like to congratulate the Government on the firmness and forthrightness of that statement, which will give universal satisfaction. On the matter on which questions have been asked, could the noble Marquess say whether, if they have a debate on this matter in another place before the Recess, we shall have an equal facility for expressing our views? I do not wish to press it further than that. There is a Motion on disarmament down for Wednesday, and this would seem to be a more vital and important matter in the present juncture of events. If a debate should take place in another place, could that business, with the consent of the Opposition, be adjusted?

THE MARQUESS OF SALISBURY

My Lords, if there is a debate in another place, of course, there should be one here. The only proviso that I make is that I am a little doubtful whether the best results would accrue if the two debates took place simultaneously. In the past, over a good many years, it has been our practice to hear first what is said in another place on questions of foreign affairs, because both the Prime Minister and the Foreign Secretary are in the other place. Personally, I think that that is a wise provision. With that proviso, my answer would certainly be in the affirmative: that if there is a debate in another place, there will be one here.

LORD VANSITTART

My Lords. would there not naturally be a further statement when the present consultations with the French and the Americans are concluded?

THE MARQUESS OF SALISBURY

My Lords, I hope very much that there will be one. I should have thought that it was almost certain.

LORD BALFOUR OF INCHRYE

My Lords, would the noble Marquess, if he thinks it right, consider suggesting to the Prime Minister that he should broadcast to the nation, particularly as Parliament is about to rise for the Recess. and there is, quite rightly, great public concern about this matter?

THE MARQUESS OF SALISBURY

My Lords, I will certainly see that that suggestion is transmitted to the Prime Minister.