§ 21. Mr. HUNTasked the Secretary for the Colonies whether the terms of agreement with, or concessions to, oil trusts or combines operating in British territory, or territories under British protection, have included, or will include, a clause providing that a stated number of tons of oil shall be reserved for the use of the British Navy at a price calculated on the cost of production in addition to a charge of 10 per cent, to cover interest on capital?
§ The SECRETARY of STATE for the COLONIES (Mr. Harcourt)I would refer the hon. Gentleman to the stipulations contained in Clauses 12 to 16 of Part VII. of the schedule to the lease scheduled to the agreement in Command Paper 6861. Those stipulations as to pre-emption in time of war and emergency and control of 271 works are so far considered sufficient by the Admiralty to safeguard the interests of His Majesty's Navy, but the question of adopting further safeguards, especially in regard to the obtaining of crude oil at reasonable prices, will be kept constantly in mind.
§ Mr. HUNTWill the right hon. Gentleman say why nothing has been done to meet it at present? In view of the fact that it has been constantly in mind and that nothing has been done at present, may I ask why the right hon. Gentleman has neglected his obvious duty?
§ Mr. HARCOURTI think that perhaps the hon. Gentleman will obtain some information as to the performance of my duties if he will consult Clauses 12 to 16 of Part VII. of the Schedule to the lease scheduled to the agreement in Command Paper 6861.
§ 22. Mr. HUNTasked whether any agreement is in existence relating to British territory or territory under British control, operated by an oil trust or combine, which contains a stipulation for the reserve of oil for the British Navy without stating the price at which the oil so reserved shall be delivered to the agents of His Majesty's Government; and whether, if there is such a clause, there is anything to prevent the oil concession-naires thus favoured from charging 20s. a gallon in time of war to the British Government?
§ Mr. HARCOURTThe agreement which embodies the policy of His Majesty's Government with regard to the stipulations that are considered necessary in the interests of His Majesty's Navy will be found in Command Paper 6861. It is provided in Clause 15 of Part VII. of the Schedule to the lease printed in that Paper that, in default of agreement, the price to be paid for oil taken compulsorily by the Governor shall be referred to two arbitrators. I am not aware of the existence of any agreement which would have the effect apprehended by the hon. Gentleman in the last part of his question.
§ Mr. HUNTWhat is going to happen while war is going on, and while the arbitrators are arbitrating? Are we to pay 20s. a gallon for oil?
§ Mr. HARCOURTI cannot at present tell the hon; Gentleman what is going to happen when war is going on.