TNAG-1154-FCO40-1434-Visits-by-Members-of-Parliament-(MPs)-to-Hong-Kong-1982 — Page 168

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THIRD REPORT FROM THE EXPENDITURE COMMITTEE

Nations force (Q 108). We consider the expenditure on UNFICYP, currently being made, a good investment and recognise the fundamental role played by British Forces in sustaining the United Nations' effort.

23. The matters of principal concern which the Sub-Committee raised with the British High Commissioner in Cyprus related to the difficulties resulting from the communal fighting, the Turkish landings, and the subsequent de facto division of Cyprus. A number of individuals, commercial interests and indeed the Government have lost property situated in the northern part of the island now under Turkish control. In addition, various other items were damaged during the fighting or in subsequent looting (Q 100). The High Commissioner and his staff, the British Ambassador in Ankara and Ministers and officials of the Foreign and Commonwealth Office have made numerous representations to try to achieve an equitable settlement of the resulting claims (Q 99)1.

24. The initial task accomplished by the High Commission was the registra- tion of the claims for compensation. One particular case which has had serious consequences for the Services was the loss of use of the NAAFI cold storage at Famagusta now part of the Turkish sector. Not only did the Services have to reprovide with first temporary and then more permanent facilities for cold storage, but also there was a substantial loss of meat and other perishable items after Famagusta fell to the Turkish forces. Another instance of property being blighted as a result of the situation in Cyprus is the former residence of the High Commissioner in Shakespeare Avenue in Nicosia. It was admitted that now the property has virtually no use. Nor does it represent a realisable asset (Q 109). Other major assets currently depreciating in value include the remaining British owned aircraft stranded at Nicosia Airport which is on the cease-fire line between the two communities (Q 104). We note that one of the aircraft has been released but consider that a more robust attitude might be adopted about obtaining release of those remaining. On their visit to the airfield the Sub-Committee were able to see these aircraft standing where they had been immobilised or damaged during the fighting.

25. We recognise that the Government and their representatives in Ankara, Nicosia and in London are keen to settle the whole range of claims for com- pensation involved in the wake of the troubles. There are two aspects which we find disturbing however. First, we are concerned that the Government should press with urgency the matter of those claims where, if further time were to elapse, property is likely to deteriorate. This has particular relevance in the case of movable items such as the aircraft at Nicosia airport. Second, we note that there have been some practical restrictions on the freedom of movement of High Commission staff in inspecting and safeguarding British property. We urge that the Government should insist to the Turkish Govern- ment and to the Turkish Cypriot administration that the freedom of movement of diplomatic staff should be unrestricted.

SUMMARY OF CONCLUSIONS

26. We summarise our main conclusions as follows:

(1) We welcome the satisfactory conclusion of the defence costs negotia- tions and regard the result as fair to all concerned (paragraph 4).

See also Memorandum to the Select Committee on Cyprus HC (1974–75) 633-I pp 11–12.