Export Credits (Russia).

Oral Answers to Questions — Trade and Commerce. – in the House of Commons on 9th July 1931.

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Photo of Mr William Thorne Mr William Thorne , West Ham Plaistow

74.

asked the President of the Board of Trade if he can give the House any information of the terms of agreement made with the Russian Government about machinery to be made and ships to be built in this country?

72 and 73. The following questions stood upon the Order Paper in the name of Mr. KIRKWOOD: To ask the President of the Board of Trade whether he is now in a position to say whether the export credits advisory committee is prepared to guarantee any loans for shipbuilding orders to Russia or to any other country?To ask the President of the Board of Trade whether he can state the terms of credits offered under the export credits scheme for heavy engineering orders placed with British firms by Continental buyers; and whether the Government is prepared to re-examine its terms with a view to securing more orders?

Photo of Sir Robert Chadwick Sir Robert Chadwick , Wallasey

On a point of Order. Question No. 72, that is now down in the name of the hon. Gentleman the Member for Dumbarton Burghs (Mr. Kirkwood), on this important matter of Russian credits, was down in the name of my hon. and gallant Friend the Member for Abingdon (Major Glyn) on Tuesday. At that time the President of the Board of Trade said that he was going to make a statement on Thursday in reply to this very question. Now the hon. Gentleman is not here to put it.

Photo of Mr William Thorne Mr William Thorne , West Ham Plaistow

Are you aware, Mr. Speaker, that I also had a question down on Tuesday, and the President of the Board of Trade asked me to postpone it until Thursday?

Photo of Lieut-General Edward Fitzroy Lieut-General Edward Fitzroy , Daventry

Questions on the same subject are down to-day.

Photo of Mr William Graham Mr William Graham , Edinburgh Central

I will answer these three questions together. With regard to credits for ships, His Majesty's Government, in view of all the circumstances and especially the existing glut of tonnage, consider that Government guarantees should not be given for the building or sale of ocean-going vessels for whatever country they may be destined. My right hon. Friend the Lord Privy Seal has been in touch with the Soviet Trade Representative with a view to the increase of British exports to the Soviet Union. It has been arranged that the Export Credits Advisory Committee, to whom His Majesty's Government are very much indebted in this matter, will be prepared to consider sympathetically applications for guarantees in respect of orders for heavy engineering material to be placed in the near future, subject to agreement with exporters about prices, and provided that credits up to 30 months from the date of the order, including the period of manufacture, could be arranged. The Soviet Representative for his part has agreed that in this case he is prepared to regard the question of the length of credit as settled.

Photo of Mr Philip Lloyd-Greame Mr Philip Lloyd-Greame , Hendon

Will all cases in which it is proposed to give credits be submitted to the Advisory Committee?

Photo of Mr William Graham Mr William Graham , Edinburgh Central

Certainly, they are a statutory committee under the Act.

Photo of Mr Ernest Brown Mr Ernest Brown , Leith

Do I understand that the answer does not apply to non-oceangoing ships like tugs and things of that kind?

Photo of Mr William Graham Mr William Graham , Edinburgh Central

This reply covers ships at large. That is the correct way in which to view it.

Photo of Sir William Davison Sir William Davison , Kensington South

Will the right hon. Gentleman postpone taking action on this matter until at any rate the Russian Government have defined their attitude with regard to the £250,000,000 of British money which is still under consideration?

Photo of Mr William Graham Mr William Graham , Edinburgh Central

That is quite a separate matter. The House has been clearly informed that all these orders will under the Act be carefully considered by the Advisory Committee.

Photo of Major Murdoch Wood Major Murdoch Wood , Banffshire

Will the right hon. Gentleman say whether these credit terms will also be available for foodstuffs like herrings?

Photo of Mr William Graham Mr William Graham , Edinburgh Central

This question relates to heavy engineering materials, and there is a wide distinction between the engineering trade and the perishable herring.