§ Mr. Biggs-Davisonasked the Chancellor of the Exchequer what were the terms of the settlement made out of court by the London Board of the Reserve Bank of Rhodesia in the case of banknotes printed in Munich for Rhodesia; what payments were made by the said board in that regard; from what funds; with whose authority; and whether he will make a statement.
§ Mr. CallaghanOn 27th January, 1967, the German Court recognised Sir Sydney Caine and his fellow directors as the sole legitimate representative of the Reserve Bank of Rhodesia. This having been established, the Bank and the printers entered upon discussions for the resolution of the issues outstanding between them. On 6th March, 1967 the printers formally accepted terms that had been offered by the Bank on the direction of the Secretary of State at the conclusion of the negotiations some weeks earlier.
Under the agreement, the printers may not deliver the banknotes to Southern Rhodesia except on the directions of the Bank. The banknotes, together with unfinished banknotes, banknote paper and plates, are instead deposited in the vaults of a German bank in the joint names of the parties. The printers have agreed not to print any further notes for Southern Rhodesia for 2½ years unless constitutional government is restored earlier. The Bank, on the authority of the Board, and taking into account the direction referred to above, has paid from its own funds the sum of DM. 3 million to cover the printer's expenses and losses on the transaction. The Court proceedings have been withdrawn, each side to bear its own costs.