Oral Answers to Questions — British Army. – in the House of Commons on 7th May 1940.
asked the Secretary to the Overseas Trade Department what insurance will be obtainable by British firms from the Export Credit Scheme to cover part of the risk that emerged after the great war of non-receipt of payment for goods owing to Eastern buyers refusing to accept delivery at contract prices, coupled with their demands for price reductions on earlier goods which buyers had accepted but had not sold, but in both cases owing to the fall in prices?
The Comprehensive Guarantee Policy issued by the Export Credits Guarantee Department, which covers the risk of a buyer's insolvency, normally excludes losses in respect of goods which have not been delivered to the buyer. In the case of exports to India and certain countries in the Far East, if the transactions are conducted with buyers on the basis of Documents against Payment, the Department is prepared under certain conditions to cover the risk of loss due to the failure of a buyer in such cases to take up the goods. I am sending the hon. Member fuller details of the cover which can be provided.