asked the Secretary of State for Commonwealth Relations when the unexpended portion of the contribution of £2,875,000 from Colonial development and welfare funds towards the University of Rhodesia and Nyasaland will be spent; and what part the United Kingdom is playing in the negotiations about the university's future.

Of the unspent balance of the £2,875,000 Colonial Development and Welfare funds allocated to the College, £304,000 has not yet been committed to individual schemes. The British Government have recently released £110,000 towards the building of a Students' Union. I cannot at present say when the remainder will be made available.

On the second part of the hon. Member's Question, I have nothing to add to the Answer given to my hon. Friend the Member for Chigwell (Mr. Biggs-Davison) on 23rd January.

In view of the substantial contribution made by Britain towards this university, can the hon. Member say whether it is the intention that the British Government shall con- tinue to be associated with the government of the University of Rhodesia and Nyasaland? Can he also say whether, in these negotiations, the Government will ensure that the university is maintained on multi-racial lines?

I cannot commit the British Government in advance of the forthcoming talks on the future of the college. The details of those talks will come later. As for the general principles on which the college is run, I am sure that we have a great deal of sympathy with what the hon. Member says.

asked the Secretary of State for Commonwealth Relations what action is to be taken on the material dealing with economic development and its financing, prepared in accordance with the decision of the Commonwealth Conference held at Montreal in 1958; what proposals Her Majesty's Government have for a Commonwealth policy for economic expansion and co-operation; and whether the Government will now prepare an economic policy to be put before the next conference of Commonwealth Prime Ministers.

I assume that the hon. Gentleman is referring to the reports on economic development in Commonwealth countries published by the Commonwealth Economic Committee as a result of decisions taken at the Montreal Conference. These Reports provide part of the background for decisions taken by the British Government and other Commonwealth Governments from time to time on questions of trade and financial aid.

I would refer the hon. Gentleman to the statements issued by meetings of Commonwealth Trade Ministers last May and of Commonwealth Finance Ministers last September, of which I am sending him copies, and to the replies given in this House on 3rd December and on 5th December last.

Does the Minister agree with me that some very fine documents have been prepared—among the best ever—and that a tremendous amount of work must have been put into their preparation? Is it not logical, with the preparation of these documents, that we should adopt a policy in harmony with them? Does the Minister agree that the time has arrived when Ministers should be putting into the development of the Commonwealth the same energy as they put into the development of the Common Market?

I agree that the documents and the reports are extremely good. If, in the comparatively near future, there should be a debate on Commonwealth trade, the hon. Member may be lucky enough to catch your eye, Mr. Speaker, and develop the points that he wishes to make.

Does not my hon. Friend agree that the greatest disincentive to the development of trade is the breakdown in law and order in a number of Commonwealth countries? Would not it be putting first things first to call a meeting of Commonwealth Prime Ministers as early as possible?

Order. That does not arise out of the Question.

asked the Secretary of State for Commonwealth Relations what Commonwealth countries are participating in the projected Commonwealth Art Exhibition in this country.

I understand that the Question refers to the Commonwealth Festival of the Arts, which is planned for 1965. Invitations to participate in this Festival are issued by the Commonwealth Arts Festival Society whose Director-General, Mr. Ian Hunter, will shortly begin a tour of the overseas Commonwealth to discuss contributions. Until this tour has been completed, the Society will not be able to say definitely which countries will take part.

May I ask whether all countries in the Commonwealth are being invited to give exhibits? Is our own financial assistance confined to £80,000, or are the Government prepared to go beyond that sum if necessary?

The participants cannot be known until this tour by the Director-General has been completed. All Commonwealth countries through their High Commissioners here have been invited to the Festival. The British Government have promised a guarantee against loss of £80,000, and in addition have given £2,000 towards the preliminary expenses of the Festival. The British Government warmly support the proposal to hold this Festival.

In view of the fact that this proposal is highly imaginative and desirable and that a great number of local authorities who intend to participate will help to finance it with quite considerable sums, may I ask whether, if it be successful—as we all hope—it will become a regular feature of our life, and be held at least every five years?

I am sure it would be a very happy event if that should prove to be the general wish of the countries participating.

If this proves successful, can the Minister say whether there are plans to do the thing in reverse and arrange a tour in the Commonwealth countries of some of the exhibits associated with this Festival?

We had better see how the Director-General gets on. Suggestions such as that made by the hon. Member may well be taken up at a later stage.

asked the Secretary of State for Commonwealth Relations why economic aid from this country to independent Commonwealth countries fell to a total of £23·1 million in the first half of the current financial year, compared with £29 million in the preceding six months, and £33·2 million in the six months before that.

The figures quoted by the hon. Member represent the sums of money actually disbursed. The rate of disbursments necessarily fluctuates as it is governed by the need of the recipient countries to draw on the aid available to them, under contracts into which they have entered.

Are we not in a rather paradoxical situation in that the Treasury White Paper last September forecast an increase in aid both to Commonwealth and other recipient countries, but figures so far in this financial year seem to have indicated a large drop? Are the Government satisfied that the types and terms of aid are sufficiently in line with the needs of the recipient countries? Are they looking at this matter in the light of the apparent fall in the disbursement of aid?

We hope that our aid takes into account all circumstances of the recipient countries. I think it as well to remember that our aid has doubled in the last five years.

Have the Government any plans to increase and stabilise the prices of raw materials which these countries send to us? This could be the best economic aid we could give them. What are we doing about that?

Should there be a debate on Commonwealth trade in the near future, this, no doubt, is a matter which could more easily be dealt with then than by Question and Answer, but I have much sympathy with the point of view of my hon. Friend. Of course, because there has been in recent years such a decline in the prices of raw materials, the terms of trade have turned against them.

Are not these figures provided to the House by the Government very unsatisfactory? Does the hon. Gentleman remember that at the end of last year we discovered that the Government had underspent by about £12 million what they had announced to the House as their aid programme? This year they look like being very much more underspent. Do the Government intend to revise the figures in order to get a more accurate idea of what are our commitments?

One must remember that commitments are very different from disbursements.

asked the Secretary of State for Commonwealth Relations whether he has now considered the representations conveyed to him regard- ing the pensions of Central African federal public servants; and whether he will make a statement.

Yes, Sir. A reply is being sent today to the representatives in London of the Federal Public Services Association. It has not been possible to accept suggestions for a general compensation scheme in addition to the terminal benefits, but arrangements for dealing with cases of hardship have been agreed between the Governments. It is our intention to deal with a number of points raised by the Staff Association in the Public Officers Agreement which is shortly to be concluded between the Governments concerned.

In view of the fact that, of course, I cannot comment on the Answer, because I do not understand exactly what it means, may I ask my hon. Friend whether there is a guarantee that in default of any of the undertakings by the Governments concerned, the British Government will accept responsibility? Will my hon. Friend bear in mind that these men have served Central Africa and the community and this country very well indeed? Is he aware that it makes me absolutely livid when we do not accept our proper responsibility and cause anxiety to those who have served our interests so adequately? Is he aware that I hope that this guarantee is in this Answer, and that I should like to know?

Of course, I accept what my hon. Friend says about the great service which has been done by these public servants on behalf of this country and the territories concerned. I should like to remind my hon. Friend that this was an agreement reached jointly between all the Governments concerned, including the British Government, and it has been the intention by this agreement to arrive at arrangements which shall seem to be fair to all the Governments concerned and the public servants involved.

Is the Minister aware that there is a great deal of sympathy among hon. Members on this side of the House for the civil servants because of some of the anomalies that have arisen out of these negotiations? Can he say something about the permanent machinery to be set up to deal with hardship? Will the Government be fully involved in dealing with the hardship cases?

I am glad that the hon. Gentleman has mentioned the point about hardship. As I said, we hope to be able to make satisfactory arrangements covering the hardship cases. Details of these will be embodied in the agreement to be announced shortly.

asked the Secretary of State for Commonwealth Relations what communications he has received from the Government of Tanganyika in respect of British military or civilian residents in Tanganyika; and what steps that Government has now taken to ensure the security of those residents.

I have nothing to add to the statements I made to the House on 20th and 27th January.

May I ask the right hon. Gentleman whether he can state approximately the number of British civilian and military personnel in Tanganyika and whether he can confirm my belief that since the independence of this country there has been no kind of criticism or complaint against military or civil personnel? Under the circumstances, would he impress on the Government of Tanganyika the need to avoid generating animus against the British?

I gave the figures of population in the statement to which I referred. There are quite considerable numbers, including a large number of citizens of the United Kingdom and Colonies who are not of United Kingdom origin—Asian population. Regarding the question of ill-feeling between the races, I fully endorse the remarks of the hon. Gentleman and I know that President Nyerere feels the same way. There have been occasional departures from the intentions which I know animate the Government of Tanganyika in these matters and I am sure that that Government regrets it as much as we do.

Would not security and confidence be best ensured by discussions about the future of the military bases in Africa in conjunction with the Kenya and Tanganyika Governments to see whether a long-term solution may be found to give confidence to people of all races in this regard?

In any case, we are due to have some talks with the Kenya Government on defence matters. These were always envisaged to take place before independence. Regarding the wider consultations, I think the recent events in East Africa have made it desirable that we should have talks with those Governments about the future and the problem which has arisen and in which we have become involved during the last few weeks.

asked the Secretary of State for Commonwealth Relations if he will make a statement about the detention of Dr. Dennis Osborne, who is a United Kingdom citizen, by the Ghana Government.

Dr. Osborne was arrested on 17th January and was released on 24th January subject to certain restrictions. The reason given for his detention was that the Ghana Security Service wished to question him in connection with alleged subversive activities.

Despite repeated requests by the Acting High Commissioner no representative of the British High Commission in Accra was allowed to see Dr. Osborne during this period. This is contrary to widely accepted international practice and especially to Commonwealth practice as we understand it. We should never deny the Ghana High Commissioner access to a Ghanaian citizen arrested in this country. My right hon. Friend is pursuing this point further with the Ghana Government.

As one who appreciates some of the difficulties under which the President has to work, may I join with the Minister in condemning this action? May I ask the Minister whether immediate steps were taken, or was some time allowed to elapse before our Acting High Commissioner made representations?

I would rather not go into great detail about this. I think that this is an incident which is liable to damage Anglo-Ghanaian relations. It is unfortunate, and in many ways the less said about it at the moment, the better. [HON. MEMBERS: "No."]

With due respect, this is a United Kingdom citizen who is still detained. I think that representations should be made asking for his immediate release.

Representations were made as soon as possible.

asked the Secretary of State for Commonwealth Relations what prior warnings he received of the danger to British lives caused by the recent overthrow of the Zanzibar Government and the recent mutiny in the Tanganyika army.

The situation in Zanzibar has for a long while been known to be unstable and at different times there have been rumours of trouble. We had no prior knowledge of the mutinies in East Africa.

Would my right hon. Friend agree that, on the whole, there is more danger to British lives and property in many Commonwealth countries than there is in foreign countries? Is it not, therefore, vital that we should have the fullest possible information concerning future happenings in those countries? Is he fully satisfied that we have had such information and, if not, will he take steps to see that in future we have it?

Responsibility for internal security and intelligence in that connection is a matter for these independent Governments—[Hon. Members "No."]—of course it is. They are responsible for their own security and for taking the steps necessary to ensure it. If we do receive information so much the better, But we cannot make ourselves responsible for keeping in touch with every subversive activity which goes on in any Commonwealth country throughout the world.

Would not my right hon. Friend agree that we are equally responsible for the safety of our own people in those Commonwealth countries as we are for those in foreign countries? Surely our intelligence in those countries should be as efficient as it is in foreign countries?

I agree with my hon. and gallant Friend. We are responsible for the safety of our citizens in Commonwealth countries to the same extent, but not more, than we are for those in foreign countries. As to our information about pending coups and other troubles in foreign countries, we may hear about them or we may not. We cannot keep a tab on every trouble-maker throughout the world.

asked the Secretary of State for Commonwealth Relations if he will give an assurance that Her Majesty's Government will take all possible steps to protect British lives and property in those East African countries that have asked the United Kingdom for military help, when the Governments concerned request the withdrawal of United Kingdom forces.

Our concern for the safety of British lives and property in these countries, and our ability to provide help if needed, have been clearly demonstrated during this last fortnight. But the primary responsibility for law and order is and must remain that of the Governments of the countries in question.

Is it a correct assessment of the position that as soon as these Governments ask us to withdraw our troops we are in fact at any rate, if not in theory, bound to do so? It is this period immediately after the withdrawal of our troops which holds the greatest danger to the lives and property of British people in these countries. Therefore, while everyone admires the way in which the Commonwealth Secretary has handled the situation so far, will he be careful to see that we do not withdraw troops until we are pretty confident that the position is safe for British lives and property?

Not just British lives and property, but the general situation in these territories is very much in the mind not only of Her Majesty's Government but, even more so, of the Governments concerned. That is why I said earlier that it was my hope to arrange for consultations with the various Governments to see where we go from here.

asked the Secretary of State for Commonwealth Relations what information he has as to the where-abouts of Miss Diana N. Smith, a British subject employed as a nursing sister in a hospital in Pemba, Zanzibar, whose last known address was P.O. Box 98, Wete, Pemba, Zanzibar, in view of the fact that Miss Smith was last heard of when a cable was received by her father on Wednesday 15th January, 1964.

I understand that she is now working in a hospital in Zanzibar, and that she is safe and well.

While thanking my right hon. Friend for that reply, which I am sure will be appreciated by my constituent, may I ask, arising out of what he said earlier, whether he is satisfied that there is sufficient authority in the island of Zanzibar to protect British lives and interests there?

I give no assurance about the Government of Zanzibar. We have taken precautions quite some time ago to deal with the possibility of the need, which might arise, as I explained to the House, for a rapid evacuation of our citizens in Zanzibar, and there is a naval vessel available for that purpose.

asked the Secretary of State for Commonwealth Relations what consultations he has had with Commonwealth countries with a view to their assisting the British troops in Cyprus.

asked the Secretary of State for Commonwealth Relations what conclusions were reached at the London conference on the future of Cyprus.

After the opening session of the Conference I held a series of separate meetings with the representatives of Greece and Turkey and of the two Cypriot communities, with a view to finding a common basis for the discussion of the problem.

Although the approaches of the two communities remained radically different, some useful progress was made on a number of points.

However, it soon became evident—as was expected—that the task of reaching agreement was going to be difficult and protracted. In the meantime the situation in Cyprus has been growing extremely tense, which inevitably increases the danger of a renewal of the earlier disorders.

In these circumstances we felt it desirable that the present peace-keeping force should be enlarged by the participation of additional countries. Negotiations to this end are now proceeding. I hope the House will forgive me if I do not go into greater detail at this juncture. I will make a further statement as soon as practicable.

Whilst recognising the need for some international force to assist in keeping the peace in Cyprus, may I ask the Secretary of State to direct his mind to my Question, which asks what consultations he had with the Commonwealth?

All possible sources were considered.

Has the right hon. Gentleman had endorsement from Cyprus of any arrangements which have been made for an international force? Particularly, will he say whether this matter has been discussed with U Thant, the Secretary-General of the United Nations, with a view to getting United Nations authority for any steps which are taken?

I have been in fairly constant touch with all the Governments concerned, but I have not yet had a formal reaction from the Government of Cyprus about this proposal. With regard to the United Nations, as the hon. Member knows we have throughout wanted to keep the United Nations fully informed about the state of the problem and of the situation in Cyprus. As evidence of that, we have arranged with the Secretary-General to have a representative in Cyprus, General Gyani, who is there as this moment.

Having seen the matter at first hand, may I ask if the Secretary of State will please convey to the High Commission in Cyprus the thanks of this House, as well as to the Army, for the work they did in exemplary and prompt fashion in December last year?

I am sure that will be appreciated.

asked the Secretary of State for Commonwealth Relations what decisions were reached in the official discussions with Mr. Winston Field, Prime Minister of Southern Rhodesia, regarding the future of that territory.

My talks with Mr. Winston Field were confidential.

I appreciate that, but is it not desirable that as a result of these discussions the Government should now declare their intention in relation to Southern Rhodesia? Is there not great danger in allowing the situation to drift on? Is it not important that we should make clear that sovereignty for Southern Rhodesia will not be recognised until a majority of the population has the right to control the Parliament and the Government?

I will make a statement when I have something more to say.

Is my right hon. Friend aware that the Prime Minister of Southern Rhodesia is held in great regard by many people in that country for his common sense and sagacity? Will my right hon. Friend do everything he can to help him in this difficult matter?

As I have said, I have been having talks with the Prime Minister of Southern Rhodesia. This is obviously a most difficult and delicate subject, and I think that until any conclusion is reached it is better that I should not make partial statements about these matters.

Can the Secretary of State give an assurance that, as the result of these discussions, no departure has been made from Government policy already stated in the House?

There has been no change.

asked the Secretary of State for Industry, Trade and Regional Development (1) how far he has proceeded with the delimitation and designation of a Yorkshire regional planning area;

(2) if he is aware that, despite the present economic position of the East and West Ridings of Yorkshire, between 1951 and 1961 there was a net loss of population of 92,000, mainly young skilled workers, from this area, which contains a relatively small proportion of the modern growth industries; and what regional plan he has made to deal with these long-term problems.

In developing the new machinery for regional development I must at present concentrate on those parts of the country where the most pressing problems exist: but I am aware of the general situation, prospects and problems of the East and West Ridings, and I am now considering the position.

Does the right hon. Gentleman recall that on 3rd December last he stated that he was concerned with planning for the country as a whole? Is he aware that it is very important for us to know whether the East and West Ridings will be put together with Lincolnshire or Derbyshire and that this would at least be a first step?

Yes; I appreciate the importance of the point the hon. Gentleman has raised. I was able to discuss this with many of the local authorities and others in the East and West Ridings during my visit before Christmas.

Is the right hon. Gentleman aware that a statement he made during his recent visit to Yorkshire has been critically received in many quarters in industry? Will not he reconsider his position? Is it not true to say that there are certain parts of Yorkshire, particularly in the West Riding, which are mainly dependent upon old industries, some of which will need less labour in future years? Is not now the best time for future planning to bring diversification of industry to these areas, rather than waiting until there is a gross level of unemployment in Yorkshire as well?

Yes, that is why we are considering the results of the discussions we had before Christmas.

asked the Secretary of State for Industry, Trade and Regional Development what was the amount of exports, of pedigree livestock to Russia and the Eastern European countries in the last 12 months; and what steps he is taking to encourage this trade.

Separate figures are not available of exports of pedigree livestock but exports to Russia and Eastern Europe of cattle for breeding and dairy purposes amounted to £29,000 in 1963.

My right hon. Friend the Minister of Agriculture, Fisheries and Food and I encourage this trade through the Livestock Export Council and we are supporting the British Agricultural Exhibition in Moscow in May.

I thank my right hon. Friend for that Answer, which will give a great deal of encouragement to those engaged in this trade. Is my right hon. Friend satisfied that all steps are being taken to make known to the Governments of these countries the availability and quality of British pedigree livestock?

We are doing a great deal to make this known. Both my right hon. Friend the Minister of Agriculture and I are very anxious that exports of this kind should be increased. There will be further opportunities at the Moscow Exhibition. We are publicising this in the Board of Trade Journal this week. We are also, as I have already announced embarking on a series of talks with the representatives of the Eastern bloc countries in addition to the Soviet Union. This will give us an additional opportunity of bringing this to their notice.

asked the Secretary of State for Industry, Trade and Regional Development what decision he has come to on the recommendations in paragraph 1066 of the Monopolies Commission's Report on the Supply of Electrical Equipment for Mechanically Propelled Land Vehicles.

I have nothing to add to the Answer given to the right hon Member for Battersea, North (Mr. Jay) on 16th January.

If I remember rightly, the Answer was that the Government were doing something about three of the recommendations and considering the fourth. As there was no indication as to which the recommendations were, may I ask the right hon. Gentleman what he is doing about the recommendation that the Battery Association should bring to an end the price information agreement on which the members of the Association have been working?

My hon. Friend's Answer made it clear that the recommendation that Lucas's interest in certain companies should be made known was dealt with by the publication of the Report. The other two recommendations about resale price maintenance and information agreements were covered by the statement that I made to the House the week before last announcing the legislation which we propose to introduce. I am now considering the last recommendation about publishing prices and terms.

asked the Secretary of State for Industry, Trade and Regional Development what action he has taken, in accordance with the Montreal Conference of 1958, to encourage British finance and electrical plant manufacturers jointly to tender for the plant and equipment, or specifications and designs required for the harnessing of tidal power in Western Australia, the Snowy Mountains Scheme, and other similar schemes in Australia, India, and New Zealand, and for the New Zealand Geothermal Schemes.

With encouragement from the British Government, British manufacturers have been supplying well over half of Australia's and New Zealand's imports of heavy electrical plant and about one-third of India's.

Does the Minister agree that the potentialities for large-scale electrical plant are greater in the world now than they have ever been? Is he aware that there is a French consortium now preparing specifications and designs for the harnessing of tidal power in Western Australia? As Britons, at Manchester University and at Trafford Park, were the pioneers of these things, will the Secretary of State take a special interest in this in order to ensure that we keep in the forefront of this type of development?

Yes, indeed. Of course we will do that. As to Australia in particular, we are in the current year carrying out a very large programme of British Weeks and the great Exhibition at Sydney. We shall take every opportunity of pressing on with this trade.

asked the Secretary of State for Industry, Trade and Regional Development if he will state the number of firms in the Blyth constituency which made applications for Board of Trade Advisory Committee assistance in the last two years, the number of requests granted, and the number of applications still being dealt with.

During 1962 and 1963 seven applications were received for financial assistance for projects in the Blyth and Seaton Delaval employment exchange areas, which broadly correspond with the development districts in the hon. Mem- ber's constituency. Two of these were later withdrawn. In one of the other five assistance has been offered and two are under consideration.

I am grateful to the Parliamentary Secretary for that reply. What steps are now being taken to point out to industrialists that the development district outside the growth zone is still eligible for aid and that the grants available within the growth zone are also available in the development district of Blyth itself?

This is made clear in our publications, but I will give the further information to the hon. Gentleman that in the six months for which standard grants, as distinct from loans, have been available seven applications have been received for the two employment exchange areas in the hon. Gentleman's constituency and all but one have been approved in principle.

asked the Secretary of State for Industry, Trade and Regional Development if he will give details of the way in which the shares of British Lion Films Ltd. have appreciated in such a way that payment of £795,000 is being made to the five directors who purchased a half share in the company in 1958 for £9,000; and if he will make a statement.

From 1958 onwards, the then deferred shareholders, who were also the executive directors, effectively had a a half interest in British Lion after the £600,000 of preferred shares held by the National Film Finance Corporation. In last year's capital reorganisation, after 591,000 of the preferred shares had been repaid, the Corporation and the executive directors were each left with a half interest in the company. From April, 1958, to March, 1963, British Lion, under the management of the executive directors, made profits totalling £1,195,829. British Lion has now been independently valued at £1,590,000 and the executive directors have been bought out for half that sum.

May I ask my right hon. Friend two supplementary questions? First, is not this an outrageously big tax-free profit to make in such a short time, particularly when they were dealing partly with Government money and with Government restrictions? Secondly, if the company is now doing so fabulously well, why sell it?—[HON. MEMBERS: "Hear hear."]

I do not know why my hon. Friend should refer to these as being tax-free profits. They were profits made by British Lion and dealt with in the normal way. The tax loss which existed at the time when British Lion was created has not been used and, therefore, these were profits made in the normal way. The reason why the Government bought out the five executive directors was because, as a result of the arrangement for the five directors to continue to manage this company, they had three options. The first was that the Government should buy out. The second was that they should buy out. The third was that the Government should be forced to buy them out. As the five directors did not exercise their options, the Government had no alternative but to buy the company. The success of the company was due to the management of the five directors, and the National Film Finance Corporation had a holding of the 600,000 deferred shares which were repaid. Moreover, the Government have shared to the extent of 50 per cent. in the success of this company.

My right hon. Friend has not got my point. Is he assuring the House that the difference between the £9,000 that they paid for half the capital and the £795,000 that they are now getting will be subject to tax; or will it be tax-free? In any case, if they are making all that money, I still do not understand why the company should be sold.

If the company is to be sold and if satisfactory arrangements can be made—[HON. MEMBERS: "Why?"] then, of course, the Government will be in receipt of the full value of the company.—[HON. MEMBERS "Why sell it?"] It is being sold because Governments of both sides, including the one of which the present Leader of the Opposition was a member, have firmly declared that it is not the Government's intention to go into film production or distribution. That remains our view, as I have stated to the House.

Is not the Secretary of State aware that this agreement was made by the present Government in 1958 and was severely criticised by my hon. Friends? As the capital profit on these shares is tax-free, as the right hon. Gentleman must know, surely the right solution is, as the hon. Member for Louth (Sir C. Osborne) said, not to sell these shares out of public ownership?

I cannot accept the view put forward by the right hon. Gentleman. This company must be managed if it is held by the Government. When it was previously managed part of the terms were those to which the right hon. Gentleman now objects. As a result of successful management it has gone from a company making a considerable loss, a heavy tax loss, to one in which the Government's money has been repaid as to the deferred shares, and it has taken half of the results of that operation of the capital in which we each had 50 per cent The right solution is, with the proper safeguards, to sell the company into hands which will work independently on distribution and production.

I would not have got to my feet had the right hon. Gentleman not referred to me. Does he recall that this highly successful operation, which was begun with a decision of the Labour Government to create the National Film Finance Corporation, received the most bitter criticism from Conservatives when they were in Opposition? The whole operation has shown that public enterprise, even in this difficult sphere, can work very successfully. Will the right hon. Gentleman now take it that the interests of the film industry demand a continuance of the good service which has been given under the aegis of public enterprise?

If the right hon. Gentleman will look back to the speeches which he made when introducing the Bill he will see that he was not contemplating that the Government or the National Film Finance Corporation should have a holding in production or distribution companies. He made that plain at the time. We are pursuing exactly the same policy now.

But does not the right hon. Gentleman recall that the situation then arose of the growing power of the monopoly in distribution in this industry under the Conservative Government? It was the Conservatives who then had to go still further into public enterprise, with our considerable support. Would the right hon. Gentleman make it absolutely clear that in the wrecking policy on which he is now engaged he will not allow control to pass directly or indirectly into the hands of any American company?

The reason why the National Film Finance Corporation supported British Lion by taking a shareholding was not because of monopolistic tendencies in the industry but because of the great losses suffered by British Lion, and the N.F.F.C. wished to find some way of recovering its money. The monopolistic tendencies were brought about because of the decline in the requirements of the cinema-going public and of the industry itself, in which, obviously, the duopoly has been strengthened. I have given an assurance regarding the sale of British Lion, that it will maintain its present policy towards independent producers.

What about my further point; about it passing into American hands?

I have given a full undertaking to the House, and the matter is now being negotiated with those who wish to buy the company.