§ 2.50 p.m.
§ LORD KILLEARNMy Lords, I beg leave to ask the Question Which stands in my name on the Order Paper.
§ [The Question was as follows:
§ To ask Her Majesty's Government:—
- (1) whether they can give any information on the reported visit to London by Dr. Kaissouni, Egyptian Minister of Economy and Finance: and his talks with the Chancellor of the Exchequer and the Lord Privy Seal on the subject of financial aid to Egypt; and
- (2) in the event of Her Majesty's Government contemplating any such assistance, will this be made conditional upon Egypt's full compliance forthwith with the terms of the Anglo-Egyptian Financial Agreement of 28th February, 1959, on which Egypt is up to the present in serious default.]
§ THE MINISTER OF STATE FOR FOREIGN AFFAIRS (THE EARL OF DUNDEE)My Lords, the United Arab Republic Minister for Economy passed through London on May 2 on his way 87 back to Cairo from Washington. Dr. Kaissouni called first on the Lord Privy Seal and then on the Chancellor of the Exchequer to acquaint them with the result of his visit to the United States of America and, in particular, his discussions with the International Monetary Fund about support for the United Arab Republic balance of payments this year and other connected arrangements. No doubt the United Arab Republic Government will be making details of these arrangements known in due course. Dr. Kaissouni told the Lord Privy Seal of the United Arab Republic's need for further assistance under the auspices of the International Monetary Fund during 1962.
As regards the second part of my noble friend's Question, discussions were initiated in Cairo last month between Her Majesty's Ambassador and Dr. Kaissouni regarding the execution of those parts of the Financial Agreement where action is still delayed. The United Arab Republic authorities explained that delays in the transfer of assets were due to shortage of sterling. Ways and means of helping to overcome this and other difficulties are under consideration. Discussions are continuing in Cairo, and a statement will be made at the appropriate time. The views which have been expressed by your Lordships on this matter are certainly borne in mind by Her Majesty's Government in their handling of this question.
§ LORD KILLEARNMy Lords, I should like to thank the noble Earl for his, as always, most courteous and informative reply. But I did not catch from it that during this visit of the Egyptian Finance Minister the question of these claims was raised. I ask the formal question: during his visit here on May 2, was the question of the default under the 1959 Agreement raised with him or not?
§ THE EARL OF DUNDEEYes, my Lords; and it has been raised on many other occasions.
§ LORD KILLEARNYes, I followed that, but that was in Cairo. Was it raised with Dr. Kaissouni during his visit here?
§ THE EARL OF DUNDEEMy noble friend means in London?
§ LORD KILLEARNYes.
§ THE EARL OF DUNDEEYes; and it has been raised in Cairo, too.
§ THE MARQUESS OF SALISBURYMy Lords, was any progress made?
§ THE EARL OF DUNDEEI think your Lordships are aware that Her Majesty's Government have repeatedly stated to the United Arab Republic Government that the failure to implement the 1959 Agreement has prejudiced our relations, both financial and otherwise, and that if they can manage to implement their undertakings it will have a good effect on those relations. I do not really think it would be helpful if I were to say anything more than that at this moment.
§ LORD KILLEARNMy Lords, one final shot, reverting to the second part of my Question. I there ask whether, in the event of the Egyptian Minister's coming here in search of money, it will be borne in mind that their request should not be granted until we receive from the Egyptian Government guarantees that the Agreement of 1959 will be implemented. That is the second part of my Question.
§ THE EARL OF DUNDEEMy Lords, I have said, I think, as much as I can helpfully say about that: first, that your Lordships' expressions of opinion on this matter will always be borne in mind by the Government; and next, that we have in the past expressed, and now express, the view that the failure hitherto to implement the undertakings of the 1959 Agreement has prejudiced our relations, and that their implementation would greatly improve them.
§ LORD KILLEARNMy Lords, before I leave this matter, may I ask whether those were our views or the views of the Government? I am sorry to press this, but I could not make out whether the views which had been imparted to Dr. Kaissouni were the views of your Lordships, or whether they were imparted as the views of our Government.
§ THE EARL OF DUNDEEMy Lords, all the views imparted are the views of the Government. What I said was that the Government would bear your Lordships' views in mind.