asked the President of the Board of Trade why payment for the 64,000,000 yards of Japanese cotton textiles was made in dollars; and what was the total sum involved.

This was a condition 01 sale by the United States Commercial Corporation, which had provided the raw cotton, and the cloth could not have been obtained otherwise. The total amount expended was 14½ million dollars.

Will the Minister say why, for that portion of the cloth which represents work in Japan, he agreed to pay dollars when the workers are being paid only in yen?

I am afraid the answer is that it was the only way of obtaining the cloth which was needed by our Colonies.

Is it a fact that the purchase price was based on the American price, and will the right hon. Gentleman say how it comes that we pay on an American basis when production costs in Japan are 25 per cent. below American?

That is rather a different question. At the present moment it is very difficult to say what is the manufacturer's price in Japan. We paid the price we were asked, and we paid in dollars because it was the only way to get the cloth which was needed by our Colonial territories. We could not supply it ourselves.