asked the Secretary of State for Trade and Industry, in view of the shortage of oil supplies, why, on 11th December 1973, he refused an import licence for 4,000 tons of lubricating oil which can be supplied from Romania subject only to his consent.

The embargo on oil imports from Romania is being maintained pending agreement on an appropriate level of compensation for the nationalisation of British assets in 1948 and other claims.

Will my right hon. and learned Friend say how long this is to go on? As far as I know, every Eastern European Government has refused to honour such investment and commercial liabilities and similar claims but we readily trade with them. Why single out Romania?

We have been pressing for a settlement with Romania for many years. Two rounds of negotiations were held in 1973 and the discussions have now been adjourned. However, there is some reason to hope—I say this in the light of my hon. Friend's observations—that the Romanian Government will shortly make a satisfactory offer of settlement.

Is my right hon. and learned Friend aware that assets to the total value of £40 million remain unpaid for by Romania?

I am very much aware of that. It is one of the reasons why we do not cast away the prospect of a successful negotiation.