Cairo Agrees To Pay Compensation To U.K.

Press, Volume XCVIII, Issue 28835, 4 March 1959, Page 9

Cairo Agrees To Pay Compensation To U.K.

(N.Z. Prn> Associatlim—Copyright)

LONDON, March 2. The Chancellor of the Exchequer (Mr Heathcoat Amory) said today that the Cairo Government was paying the British Government a lump sum of £27,500,000 in compensation for British private property that had been Egyptianised (nationalised or compulsorily acquired). He was making a statement to the House of Commons on the financial agreement signed between Britain and the United Arab Republic on Saturday night. Under the agreement the United Arab Republic will release to the owners the British properties which they at present hold in sequestration. A White Paper issued at the same time as the Chancellor’? statement said that the £27,500,000 would be paid as follows: £3,500.000 on the date of the signature of the present agreement (February 28, 1959). £24.000.000 on February 29, 1950. The United Arab Republic will, on the date of the signature of the agreement, deposit in the name of the British Government. United Kingdom Government securities of a market value of not less than £25 million. The agreement also provides for the resumption of full payment and transfer by the United, Arab Republic of Egyptian Government pensions to United Kingdom nationals, together with all arrears. In addition the Cairo Government is paying the British Government £lOO.OOO as an interim payment for compensation due to British officials dismissed in 2951. Under the pact, which settles all financial claims arising from the Suez crisis of 1956, the bal-

ancea at present held by Egypt in the United Kingdom in blocked accounts have been released from exchange control restriction. The agreement, which earn* into effect immediately on signature, provides for the resumption of normal commercial relationships. including aviation. The agreement also provides tor the stationing of a British representative in Cairo, with adequate staff for the proper implementation of the pact The Cairo Government agreed to receive such a representative, who will be accorded diplomatic immunity and facilities. The White Paper also disclosed that the pact was not concerned with inter-government claims, the validity of which was not admitted on either side. Both Governments agreed in a simultaneous exchange of Notes that they would mutually waive such claims. Mr Frederick Erroll, Economic Secretary to the Treasury, who signed for Britain, said in his Note that the United Arab Republic did not admit liability in respect of British claims put forward for United Kingdom Government property situated in the Suez Canal base and in respect of the costs incurred by Britain for clearance of the Suez Canal for which the United Nations did not assume responsibility. He added that the British Government did not admit liability in respect of the Cairo Government’s claim arising out of the events of October-November, IMM, including damage to Government and private property and ths like.