§ * Mr. EVELYN CECIL (Aston Manor)I beg to ask the Secretary to the Admiralty whether subventions for the right of pre-emption or hire of ships as armed cruisers or transports are paid by the Admiralty to companies whose ships fly the British flag but are owned abroad; whether, in the event of war, there is anything to prevent these companies from substituting a foreign flag for the British flag at short notice; and whether the Admiralty has any practical means of enforcing its right of pre-emption or hire in such a case, or whether, by abandoning the subvention, the companies could claim that the right of pre-emption had ceased.
§ Mr. ARNOLD-FORSTERNo subventions have been at any time or are now paid for the right of pre-emption or hire of ships as armoured cruisers or transport to companies whose ships fly the British flag but are owned abroad. The second and third paragraphs of the 1182 hon. Member's Question involve important legal points which I am afraid I cannot deal with in answer to a Question. But the whole matter is being carefully considered with a view to defining the rights of the Admiralty in the event of the situation suggested by the hon. Member arising.
§ MR. EDMUND ROBERTSON (Dundee)I beg to ask the Secretary to the Admiralty whether information has reached the Admiralty that the owners of certain vessels forming part of the Royal Reserve of Merchant Cruisers have entered, or are about to enter, into a trade combination under foreign control; whether the conditions of the subsidy are compatible with such an arrangement; and whether the Admiralty are taking any action in the matter.
§ MR. ARNOLD-FORSTERThe answer to the first part of the hon. Member's Question is in the affirmative. The situation referred to was certainly not contemplated when the present form of agreement was settled, and the Admiralty have appointed a Committee to consider and report on the purport and form of future subsidy agreements. Meanwhile, they have made an arrangement with the White Star Line which will preclude the possibility of any of their subsidised or retained merchant cruisers being transferred to a foreign flag without the consent of the Admiralty during the unexpired portion of the current subsidy agreement, terminating some three years hence.
§ SIR JOHN COLOMB (Great Yarmouth)The hon. Gentleman only mentioned the White Star Line, but what about the other lines?
§ MR. ARNOLD-FORSTERThe White Star Line is the only one which has subsidised cruisers.
MR. GIBSON BOWLESasked the hon. Gentleman whether he would see that on the Committee there should be some person conversant with the law of nations.
§ MR. ARNOLD-FORSTERI am not responsible for the nomination of the Committee, but I will take care that the reasonable wish of my hon. friend is represented to those who are.
MR. GIBSON BOWLESI beg to ask the President of the Board of Trade whether he has received any information, to the effect that the vessels belonging to several line of steamboats trading between this country and the United States of America have been sold to a company with a capital of £34,000,000 and having its principal place of business in the United States, while the vessels will retain and will sail under the British flag; whether British vessels when sold to a foreign company having its principal place of business abroad retain their British registry, or whether, under such circumstances, the vessels cease to be British and become foreign vessels, disentitled to a British register and to sail under the British flag.
§ THE PRESIDENT OF the BOARD OF TRADE (Mr. GERALD BALFOUR,) Leeds, CentralI have not before me information which will enable me to say that a sale of the vessels referred to has taken place. But if such a sale has taken place the vessels would lose their British registry.