EARL of RONALDSHAYasked the Under-Secretary of State for India, if, in view of the fact that foreign countries who draw their supplies of raw jute exclusively from India impose high duties upon jute goods manufactured in India and Great Britain, he would submit to the Government of India the desirability of confining the proposed export duty to raw jute, and of giving a rebate of the duty in the case of jute shipped for manufacture in Great Britain?
§ The UNDER-SECRETARY of STATE for INDIA (Mr. Montagu)No, Sir. The tax was imposed after considering carefully its probable effect on all interest concerned in order to obtain conveniently a required revenue. To adopt the Noble Lord's suggestion would defeat this object.
EARL of RONALDSHAYMay I ask if before the hon. Gentleman came to the decision about communicating with the Government of India in the sense indicated in the question, his attention had been called to the distress which now exists in Dundee as the result of the high price of raw jute?
§ Mr. MONTAGUThe effect of the tax was considered by all concerned, but if the suggestion of the Noble Lord were adopted the revenue from this tax would be reduced by approximately half, and would be no good for the purpose.