British and United States oil interests in Ceylon are threatened with nationalisation:..... the threat of?
British and United States oil interests in Ceylon are threatened with nationalisation:..... the threat of expropriation is contained in new legislation soon to be introduced into the Ceylon Parliament. The Oil companies operating in Ceylon are Shell, Stanvac and Caltex, and their plant and buildings are worth millions of pounds.
Already, the nationalisation of the insurance companies - largely British-owned - is an accomplished fact. There is also a plant to nationalise the two principal newspaper groups.
Britain is described as recognising the right of sovereign stats to nationalise the assets of oversea firms, but feels that there is no guarantee in the present draft legislation for compensation at a fair and equable rate.
Mrs Bandaranaike's administration has already put pressure on the oil companies. It is reported that after accepting Government financial proposals the oil companies claim they are now selling petrol at an uneconomical price.
Another development is the recent offer to Ceylon of Russian oil products on very favourable terms.