Export Credits

Oral Answers to Questions — National Finance – in the House of Commons at 12:00 am on 21st July 1953.

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Photo of Sir Harold Sutcliffe Sir Harold Sutcliffe , Heywood and Royton 12:00 am, 21st July 1953

asked the Chancellor of the Exchequer in what respects facilities for credit for goods exported from this country are restricted by his foreign exchange control regulations; and if he will give an assurance that valuable trade is not being lost as a result of these restrictions.

Photo of Mr Reginald Maudling Mr Reginald Maudling , Barnet

Permission is needed if more than six months' credit is given for goods sent outside the sterling area. Longer terms are, of course, allowed for capital goods, and in this field the exporter's judgment is respected as far as reasonably possible. We are very careful to minimise the risk of losing valuable trade.

Photo of Sir Harold Sutcliffe Sir Harold Sutcliffe , Heywood and Royton

Is my hon. Friend aware that orders have been lost through too strict an adherence to this maximum period of six months' credit, although in one such case a suitable alternative was offered—half the payment immediately and the other half in 12 months' time—and would he look into this problem?

Photo of Mr Reginald Maudling Mr Reginald Maudling , Barnet

My impression is that it is very rare indeed for orders to be lost on those grounds, but if my hon. Friend has any particular cases in mind, I shall be glad to look at them.