§ Mr. Chetwyndasked the Chancellor of the Exchequer whether he has any statement to make on the sale by the Bank of England, on behalf of the British Government, of certain shares in Tanganyika Concessions, Limited.
§ Sir S. CrippsUnder an agreement between the Governments of the United Kingdom and France, dated 29th April, 1946 (Cmd. 6809), the French Government undertook to repay certain balances due to the Government of the United118W Kingdom by the transfer of agreed securities. Among the securities so transferred and still remaining unsold are 1,667,961 Ordinary shares of 10s. each in Tanganyika Concessions Ltd. which are held by the Bank of England on behalf of His Majesty's Government. This holding represents about 19 per cent. of the voting power of all shareholders.
The Bank recently received an offer from an Anglo-Belgian group to purchase these shares with the intention of offering part of them to an American group. It was contemplated that the maximum number of shares which might be transferred to the American group would be 750,000. The object of the offer to the American group would be to interest American capital in the development of African territories through Tanganyika Concessions Ltd.
The Bank of England have now been authorised by the Treasury to accept the Anglo-Belgian group's offer to purchase subject, as regards 1,500,000 of the shares, to certain conditions, which include the following:
- (a) The Anglo-Belgian group will give a firm undertaking to hold their shares for a minimum period of two years from the date of purchase, and the same condition will apply to any shares sold to the American group. It is in any case the intention of the Anglo-Belgian group to treat their holdings as a long-term investment.
- (b) The Anglo-Belgian group (and the American group in respect of any shares sold to them) will vote against any proposal to sell the interests of Tanganyika Concessions Ltd. in Union Miniere de Haut Katanga or in the Benguela Railway (except a sale of the latter to the Portuguese Government). Those interests represent 20 per cent. of the voting power in Union Miniere and 90 per cent. of the voting power in the Benguela Railway.
- (c) The Anglo-Belgian group will use their best endeavours to procure, through the appropriate procedure, an undertaking by Tanganyika Concessions Ltd. for a minimum period of ten years not to dispose of the interests referred to in (b) above and, after that period of ten years, not to sell those interests until after they have been offered to and refused by His Majesty's Treasury. In the event of such an undertaking being given, the AngloBelgian and American groups will be released from their obligation under (a), and the Treasury, if so requested, will consent to the transfer by Tanganyika Concessions Ltd. of its seat of control to Southern Rhodesia.
The Bank of England have accepted the Anglo-Belgian groups offer on the conditions authorised and the sale will 119W be completed as soon as the formal agreement is ready. The price to be realised, viz. 20s. for 1,500,000 shares and 24s. for the balance, is in excess of that at which the shares were originally transferred to the Treasury.