HL Deb 31 January 1978 vol 388 cc652-4

2.39 p.m.

The Earl of LAUDERDALE

My 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 when they propose to invite applications for licences to explore for hydrocarbons off the Falkland Islands.

The MINISTER of STATE, FOREIGN and COMMONWEALTH OFFICE (Lord Goronwy-Roberts)

My Lords, there are no such plans at present. Until the seismic surveys, now under way, are completed and their results evaluated, we do not have a sufficiently clear picture of the potential resources of the area.

The Earl of LAUDERDALE

My Lords, in thanking the noble Lord for that reply, may ask him whether we can have an assurance that, when the time comes and licence applications are acceptable, the operation of issuing licences will be a United Kingdom Government/Falkland Islands affair, and that Argentina will have no part to play in the area which belongs to the shelf of the Falkland Islands?

Lord GORONWY-ROBERTS

My Lords, I certainly expect that that will be the procedure. I am sure the noble Earl will join me in hoping that the Anglo-Argentine negotiations which are currently proceeding will result in the establishment of the two working groups to which I have referred previously, one of them on economic co-operation. I hope we can look forward to an agreement on co-operation among all three countries in the exploitation of the resources of this area.

Lord HAILSHAM of SAINT MARYLEBONE

My Lords, can the noble Lord tell the House when it is expected that the seismic operations, to which he referred in his original Answer, will be complete and the results known?

Lord GORONWY-ROBERTS

Yes, my Lords. We expect that the surveys, which will be presented to the Government, may reach us in March. Thereafter, there will be a period during which it will be necessary to evaluate expertly what the surveys have revealed—the data made available—so that we can decide, first whether there are any considerable and commercially viable deposits in the area and, secondly, how to proceed in their exploitation on the lines broadly suggested by the noble Earl.

The EARL of LAUDERDALE

My Lords, if workable deposits are indeed identified would the noble Lord accept that their exploitation could make a great difference to the economy, and therefore to the full independence, of the Falkland Islands without—if I may put it with great respect—the need of Argentinian interference?

Lord GORONWY-ROBERTS

My Lords, that may well be so. We hope that the results of these surveys, if they are favourable results, will benefit not only the Argentine but also the Falklands, and in that way fortify the economy of the Falklands.

Lord MORRIS

My Lords, is there any truth in the reports that the British National Oil Corporation are negotiating with the Argentinian National Oil Company with a view to issuing joint exploration licences?

Lord GORONWY-ROBERTS

My Lords, I am not sure whether the noble Lord is not referring to the fact that early last year application was made to the Argentine Government for permissions of that kind, which were in fact granted. However, the firms concerned came to the British Government and asked for permission to survey in the Falkland Islands continental shelf, and this was granted on the conditions I have set forth in the House today.