Brigadier Clarke80, 81 and 12. asked the Secretary of State for War (1) how much money the Navy, Army and Air Force Institutes collected in Customs duty on wines and spirits and other dutiable articles in the Canal Zone between 1951 and the present date;
(2) what claims the Navy, Army and Air Force Institutes have against the Egyptian Government; and over what period these claims are made.
(3) what steps he has taken to ensure that Navy, Army and Air Force Institutes are no longer collecting Customs duty on wines and spirits in the Canal Zone since this money no longer has to be paid to the Egyptian Government.
§ Mr. F. MacleanThe Navy, Army and Air Force Institutes have always been liable for payment of import duty on wines and spirits and will continue so under the new agreement. The rates of local overseas allowance drawn by the troops in Egypt have similarly always taken into account the prevailing prices of wines and spirits including duty.
After the unilateral abrogation of the Treaty, N.A.A.F.I., on instructions, withheld the payment of duty but prices and consequently local overseas allowance were not reduced. The Egyptian claim on this particular account was settled in the general waiver of a wide range of claims by both sides in the recent agreement. The bulk of the N.A.A.F.I. claims arose after the abrogation of the 1936 113W Treaty and included claims arising from their property in Egypt as well as on Customs and Excise. The financial consequences to N.A.A.F.I, of these arrangements are still being worked out. I can, however, assure my hon. and gallant Friend that any balance which will become available will be used to provide additional benefits for the three Services.