§ Mr. Newensasked the Secretary of State for Foreign and Commonwealth Affairs what are the current impediments to British relations with Albania; and if he will make a statement.
§ Mr. LuardWe have had no diplomatic relations with Albania since before the Second World War. In 1946 negotiations were in progress to resume diplomatic relations but were broken off as a result of the Corfu channel incident. The International Court of Justice decided in 1949 that compensation of £843,947 should be paid to the British Government by the Albanian Government. The Albanian offer in 1951 to pay £40,000 was rejected as unsatisfactory. Since 1956 the Albanians have intimated that no further discussion on compensation can take place until the solution of the long-standing problem of the gold formerly belonging to the pre-war Bank of Albania which is now in the custody of the Tripartite Commission for the Restitution of Monetary Gold. The Albanians have indicated no wish to separate the problem of diplomatic relations from the problem of the gold. The solution to the latter problem does not depend upon the British Government alone. The British Government have made it clear that they would be glad to find a way around these obstacles 81W that have prevented the restoration of diplomatic relations for so long.