§ 93. Mr. Hugh Fraserasked the Secretary of State for Commonwealth Affairs whether he will make a statement on the Tanzanian nationalisation of British assets; what compensation is proposed; and whether any prior consultations were held with Her Majesty's Government or the Commonwealth Secretariat.
§ Mr. George ThomasThe Tanzania Government announced on 6th February the immediate nationalisation of all banks, including three British banks. Subsequently it was announced that some fifteen import/export firms and millers, some of which are British owned, were being nationalised and that a 60 per cent. interest was being compulsorily acquired in six other firms, four of which are British. British insurance interests, which are widespread, are, we understand, also affected. There was no prior notification of the Tanzania Government's intention to take these steps. Her Majesty's Government are in close and continuing touch with the banks and the other British companies who have been affected by these new measures.
The Tanzania Government introduced and passed nationalisation legislation on 14th February. We have not yet seen 152W the terms of this legislation but have taken note of the Tanzania Government's public statement that full and fair compensation will be paid. Important questions will also arise as regards the future of the employees of all these firms. We are asking the Government of Tanzania urgently for information on these questions through the Canadian Government who are the Protecting Power. We understand that Mr. Jamal, the Tanzania Minister of Finance, intends to visit this country soon for discussions with the head offices of the British banks concerned.