§ 53. Mr. Peter Walkerasked the Chancellor of the Exchequer if he is aware that other nations have not imposed restrictions on the settlement of insurance claims settled in Rhodesia, and that South African, Swiss and United States insurance companies have taken over many insurances previously transacted by British insurance companies; and whether he will take action to prevent further loss of business taking place.
§ Mr. CallaghanThe main action is to prosecute vigorously the Government's policy to bring about a return to constitutional government in Rhodesia. Meanwhile the Government is doing what they can by diplomatic representations to safeguard the interests of British insurers.
§ 54. Mr. Peter Walkerasked the Chancellor of the Exchequer if he is aware that the decision preventing the settlement of insurance claims in Rhodesia by British insurance companies has resulted in increased pressure upon British insurance companies to retain greater funds in those overseas countries where they transact insurance; and what estimate he has made as to the effect on the balance of payments.
§ Mr. CallaghanThere is often pressure on insurance companies to retain premium funds in the country of origin. I have no reason to believe that sanctions against Rhodesia have resulted in any serious increase in this pressure which would not have occurred in any event.
63. Dr. Bennettasked the Chancellor of the Exchequer if he is satisfied that all pensions due to civil and Armed Forces pensioners now resident in Rhodesia have been received by them in full; and if he will make a statement.
§ Mr. CallaghanI would refer the hon. Member to the Answer given to the hon. Member for Galloway (Mr. Brewis) on 7th February. The arrangements are working satisfactorily.
Mr. Kingasked the Chancellor of the Exchequer what was the value of the service of Rhodesia's outstanding debts 198W to Great Britain in respect of which Great Britain is a guarantor; and what loss is currently being sustained on account of sanctions.
§ Mr. DiamondHer Majesty's Government is not the guarantor of any Rhodesian Government debt to Great Britain. My right hon. Friend, the President of the Board of Trade, will be referring today, in reply to another Question, to private credits to Rhodesia which are the subject of normal E.C.G.D. guarantees.
Mr. Kingasked the Chancellor of the Exchequer what was the value of payments of profits and dividends to Great Britain from Rhodesia in 1964; and if he will estimate the current loss to Great Britain caused by sanctions.
§ Mr. MacDermotPayments of interest and remittances of profits and dividends resulted in a net credit to the United Kingdom in 1964 estimated at about £3 million. The loss to the U.K. balance of payments on this account to date can be not more than a small fraction of this sum.
Mr. Kingasked the Chancellor of the Exchequer if he will give the value of banking and insurance services and other invisible exports into Rhodesia from Great Britain in 1964; and if he will estimate the current loss to Great Britain in this respect caused by sanctions.
§ Mr. MacDermotNet earning from Rhodesia on account of services in 1964 are estimated at about £7 million. The loss to the U.K. balance of payments to date on this account can be no more than a small fraction of this sum.
Mr. Kingasked the Chancellor of the Exchequer if he will estimate the total present effect on the British balance of payments caused by sanctions against Rhodesia.
§ Mr. MacDermotNo exact estimate can be made. On balance, the effect so far has probably been small.