asked the Minister of Works what is the justification for retaining the requisition of 33, Davies Street, W.., at a rental of £500 a year; at what figure this property is being sub-let to the American Government; and if he is aware that Messrs. Hammersley, Kennedy & Co., Ltd., the owners of this property, wish to obtain possession of it for their own use.

The requisition of 33, Davies Street, is retained at present to house certain branches of the United States Embassy to whom it was allocated in 1945 to enable them to release larger premises urgently required for a Government Department. The United States Government will vacate this building early next year. The Embassy are charged the actual compensation rental, together with a sum to cover maintenance and other costs incurred by my Ministry. I am aware that the firm referred to in the Question, who are the tenants of one of the six floors, wish to obtain possession of this floor, but it may be necessary to re-occupy the premises when the Americans leave.

What is the justification for paying the owners only £500 a year when the premises are worth at least £2,000, and then gratuitously throwing away at least £1,500 of American dollars—the difference between £2,000 and £500—which the Americans would have been quite ready to pay if the right hon. Gentleman had not intervened as an intermediary?

These premises were used for the purpose of getting the Embassy to vacate other premises, which were even more important than the property they occupy. As I have said, we are only charging what we, as the Government, actually pay for the requisitioning of these premises.

Hon. Members:

Why?