HL Deb 17 May 1991 vol 528 cc1859-61

11.21 a.m.

Lord Campbell of Croy asked Her Majesty's Government:

What are the prospects for improving relations with Albania.

The Minister of State, Foreign and Commonwealth Office (The Earl of Caithness)

My Lords, we hope to be in a position soon to respond to the Albanian offer to restore diplomatic relations.

Lord Campbell of Croy

My Lords, I am grateful to my noble friend for that reply. Although the loss of more than 40 British lives in 1946 from the mining of the Corfu Channel and the tyrannical regime of the late Enver Hoxha have made good relations impossible, will the Government, in view of the new climate in Eastern Europe, now take the opportunity to start to bring Albania out of its present isolation?

The Earl of Caithness

My Lords, we welcome the progress which has been made to date in bringing Albania out of the cold deep-freeze situation which it was in. We wish to encourage that process. My noble friend referred to what has been the stumbling block for the Albanians. That is certainly a problem which still needs to be resolved.

Lord Cledwyn of Penrhos

My Lords, I welcome what the noble Earl said and also the meeting held over the past few days between Mr. Douglas Hogg and the Albanian Prime Minister. What were the objectives of those talks and was any real progress made? Does Albania qualify for assistance from the European Bank of Reconstruction and Development? If my memory is accurate, there was a great argument at one stage about so-called Albanian gold. Is that still current, what is happening to the gold and where is it?

The Earl of Caithness

My Lords, we have the gold. We have always maintained the position that we should restore diplomatic relations and then discuss, first, the case as regards the Corfu Channel, which my noble friend raised, and then the return of the gold. However, first, we should settle the Corfu Channel dispute. When discussions took place with my honourable friend Mr. Hogg, it was put to him that it may now be a good idea to have diplomatic relations without any conditions.

Lord Cledwyn of Penrhos

My Lords, can the noble Earl tell me what is the gold worth?

The Earl of Caithness

My Lords, no I cannot.

Lord Harvington

My Lords, when my noble friend considers this matter will he make quite sure that the ordinary rules of navigation are agreed to as between Albania and ourselves? It may no longer be necessary for anybody navigating a ship, as I have done about eight times in the past 20 years, through the straits to Corfu to go 15 miles out to sea in the middle of the night with fear and terror in their hearts that an Albanian gunboat may stop them.

The Earl of Caithness

My Lords, I shall draw the remarks of my noble friend to my honourable friend's attention. To answer the noble Lord, Lord Cledwyn's question, the gold is worth about 18 million dollars.

Lord Auckland

My Lords, will my noble friend confirm that tourists are now going to Albania from this country? Bearing that in mind, does he not agree that my noble friend's question is urgent and that there will be opportunities for the construction industry to build new hotels there if the tourist industry really takes off?

The Earl of Caithness

My Lords, there certainly is potential for a tourist industry and we hope to announce soon a decision on diplomatic relations.

Lord Campbell of Croy

My Lords, will my noble friend confirm that the gold to which the noble Lord the Leader of the Opposition referred was the subject of a decision taken after the Albanian government of the day had refused to accept the findings of the Hague court and, therefore, to pay compensation? Therefore, the gold has been held since about 1949 until that problem is resolved.

The Earl of Caithness

My Lords, my noble friend is right.