§ Captain Kerbyasked the Chancellor of the Exchequer what was the total of Egypt's sterling balances held in London on 31st October, 1956, 16th May, 1957, 12th November, 1958 and 31st January. 1959, respectively; in what securities these funds were, or are, partly or wholly invested; and what payments have been made from these funds between 31st October, 1956, and the present time.
§ Mr. ErrollIt is not the practice to reveal details of the sterling balances of individual countries or of transactions affecting these. The last published statement by the National Bank of Egypt, issued on 28th August, 1958, showed that £E43.4 million, £E41.8 million and £E1 million stood to the credit of the No. 1, No. 2 and No. I (Special) Accounts respectively of the National Bank of Egypt.
§ Captain Kerbyasked the Chancellor of the Exchequer (1) what steps he has taken to ensure that his representative who initialled the Anglo-Egyptian Financial Agreement, without full and careful scrutiny of the Egyptianised Smouha family holdings, is now informed in detail of the value and extent of British properties and interests in Egypt before he is permitted to sign any compromise agreement on behalf of Her Majesty's Government;
(2) whether, in his further negotiations with the Government of Egypt, he will undertake to include in the British delegation at least three former members of the Anglo-Egyptian business community in order to avoid the errors, omissions and misunderstandings which have marred the recent efforts to reach a settlement;
(3) how far the figures of value of British property expropriated and sequestrated by the Egyptian Government correspond with the figures given to Mr. Eugene Black as mediator in the recent Anglo-Egyptian financial negotiations, and with the other sets of figures formally submitted to him for consideration during these negotiations;
(4) for what specific purpose Sir Denis Rickett flew to Washington to see Mr. Eugene Black; what provision has been 85W made lo prevent the Egyptian Government buying dollars and other hard currency goods with the frozen sterling that will be available after settlement of the British claims; and what undertakings have been given by Colonel Nasser, as part of the present agreement, to cease interfering in the affairs of Iraq, Aden, and Kuwait, and to call off his anti-British propaganda through Radio Cairo.
§ Mr. ErrollI am not prepared to discuss these details in advance of the signature and publication of the Financial Agreement with the United Arab Republic.
§ Captain Kerbyasked the Chancellor of the Exchequer what is the present value of the Egyptian £ in terms of sterling; and whether, having regard to the hardships inflicted on British citizens evicted from Egypt in 1956, and to the failure to obtain compensation for their losses, he is now prepared forthwith to cancel the £7 million loans made to them and to recover this sum from Egypt's frozen sterling balances.
§ Mr. ErrollThe official rate for the Egyptian £ is £E1 = £1 0s. 6d. On the other hand, the £1 sterling stands at a premium of about 17.6 per cent. over the Egyptian Export £1 which is used for commerce. In answer to the second part, the question of the repayment of theex gratia loans is in abeyance pending the signature and implementation of the Financial Agreement with the United Arab Republic.
§ Captain Kerbyasked the Chancellor of Exchequer to what extent the financial agreement between the Suez Canal Company and the Egyptian Government for compensation by instalments contained provision for payment from Egypt's frozen sterling balances; and why he sanction the release of £3,300,000 for that purpose in December last, thus reducing the collateral held on behalf of British claimants to compensation by the amount.
§ Mr. ErrollParagraph D of Article 8 of the Agreement between the Suez Finance Company and the United Arab Republic covered the possibility of the release of blocked sterling for payment to the Suez Finance Company, and reads as follows:
"Article 8.
D.—(1) If the Government of the United Kingdom provides a special release from 86W Egypt's No. 2 Sterling account for the specific purpose of making advance payments on the instalments specified in paragraph B above, amounts so released will be paid over forthwith by the Government of the United Arab Republic for application to the payment in advance of the two next maturing instalments specified in the said paragraph B.(2) In the event of a release by the Government of the United Kingdom of the total of Egypt's No. 2 Sterling account, the Government of the United Arab Republic will pay over forthwith an appropriate amount of the funds so released for application to the payment in advance of the two next maturing instalments specified in paragraph B above.(3) In the event of releases being made under (1) or (2) of this paragraph D the amounts payable thereunder shall in no event exceed the amount of two instalments.Paragraph B of Article 8 specified that instalments of £E.4 million should be paid on 1st January, 1959–63 and £E.3 million on 1st January, 1964.