asked the Chancellor of the Exchequer whether any understanding was reached with the Israeli authorities in regard to the settlement of British business claims against the Israeli Government when the negotiations for the release of Israel's blocked sterling accounts were conducted.

No, Sir. It is not our normal practice in making agreed releases from sterling balances to attach conditions regarding their use.

Does the right hon. Gentleman think it fair that arrangements such as this should be reached with the Israeli authorities, while business house claims are still left outstanding after two and a half years?

No doubt the Israeli Government will be well aware of the importance of meeting these claims as soon as possible.