§ Mr. Boston
asked the Chancellor of the Exchequer whether he is aware that the action taken to suspend payment of insurance claims from the United Kingdom to Rhodesia is arousing anxiety lest similar action might be taken in the event of a political dispute between Her Majesty's Government and Governments of other countries; what action he proposes to take; and whether he will make a statement.
§ Mr. Callaghan
There can be no foundation whatever for any such anxiety. 39W The Government are fully conscious of the necessity of maintaining respect for the sanctity of insurance contracts. The present situation involving the United Kingdom and Rhodesia could not arise in respect of the United Kingdom and an independent sovereign State. In Rhodesia we are dealing not with a political dispute between sovereign Governments but with a rebellion by persons in a dependent territory against their lawful Government. It should also be clearly understood that the present stop on insurance remittances to Rhodesia is temporary. It will be lifted as soon as constitutional Government is restored. British insurers will then be free to pay in full any outstanding claims due to Rhodesia.