§ 7. Mr. W. THORNEasked the Secretary to the Board of Trade what properties 833 are owned by the Kellner-Partington Paper Pulp Company in enemy countries; whether he is aware that the alleged Norwegian purchasers of this concern have concealed their identity; and whether, before sanctioning any transfer of this company's properties to foreigners, he will disclose to Parliament the actual character of the purchasers?
§ The MINISTER of BLOCKADE (Lord Robert Cecil)In answer to the first part of the question, I believe the company owns property in Austria. The answer to the second part is in the negative as far as I know; the third part, therefore, does not arise.
§ 8. Mr. W. THORNEasked the Secretary to the Board of Trade whether he is aware that the price offered for the control of the Kellner-Partington Paper Pulp Company by a Norwegian syndicate is £6,721,830, which represents nearly £3 per head of the whole population of Norway; that no person desirous of earning a fair return on capital would offer such a price; that the actual purchaser is the German Government; and whether he will take steps to oppose the transference of any British industry to foreign control until the various reconstruction committees have completed their work?
§ Lord R. CECILI believe the price is as stated; the answer to the second part of the question is in the negative; as to the third, His Majesty's Government have the assurance of the Norwegian Government that none but Norwegian subjects will be allowed to take shares in the purchasing company. I could not give so wide a pledge as that asked in the last part of the question, though I fully agree that the point raised is one of the greatest importance.
§ 10. Mr. THORNEasked the Secretary of State for Foreign Affairs whether he is aware that the Kellner-Partington Paper Pulp Company, of Manchester, Barrow, and of Borregaard, Norway, and Klarafors and Deje mills, Sweden, and also Austria, were at the outbreak of war proprietors of a line of special steamers for the carriage of timber from Russia to Norway; will he state whether they are still proprietors of those steamers; and, if so, what steps he proposes to take to prevent the transfer of these steamers to a foreign flag and their utilisation by the purchasers of the company for the supply of munitions to Germany?
§ Lord R. CECILThe company named had two or three coasting boats trading exclusively in Norwegian waters and two ocean-going steamers which are registered under Norwegian flag and which have been requisitioned by His Majesty's Government.
§ 11. Mr. THORNEasked the Secretary of State for Foreign Affairs whether he is aware that 88 per cent. of chemical wood-pulp consists of cellulose, and that on the declaration of cotton as contraband in the autumn of 1915 the Germans announced that they would use wood-pulp as a substitute; that this announcement was promptly followed by Sweden placing an embargo on the export of chemical wood-pulp to Great Britain in January, 1916; that immense profits were then realised by Swedish and Norwegian makers by sending these chemical products into Germany for the manufacture of Zeppelins, aircraft, and munitions; that these same Swedish and Norwegian makers are now acquiring the Kellner-Partington Paper Pulp Company, owned by British shareholders and directors, and that the effect of this acquisition will be to increase enemy munition supplies and material for Zeppelin building; and whether he will refuse consent to the sale until the whole proceedings of this company and its directors have been investigated by a Special Committee?
§ Lord R. CECILIn answer to the first part of the question, I believe the Germans have been using wood-pulp for the manufacture of nitro-cellulose; to the second, an embargo was placed on the export of cellulose; to the third, no doubt large profits were made but not in connection with Zeppelins or aircraft; to the fourth, that the company named is being acquired by Norwegian purchasers; and to the fifth, that careful inquiry was made as to the purchasers, and steps have been taken to obtain an undertaking from them not to sell the products to enemy purchasers, and in these circumstances, and in view of the great importance of keeping up the Scandinavian exchange, consent has been given to the sale.
§ 12. Mr. THORNEasked the Secretary of State for Foreign Affairs whether he is aware that the forest properties of the Kellner-Partington Paper Pulp Company consisted of 200,000 acres in Sweden and 100,000 acres in Norway, and that this wood consists largely of the best classes 835 of spruce and other woods capable of conversion into cellulose and nitro-cellulose and consequently of value in munition making and Zeppelin building; whether he is aware that there are large exports of wood-pulp to Germany in return for an import of 4,000,000 tons of coal; whether he has considered the danger of arming the enemy if these properties pass out of British hands while war is still proceeding; and, if so, will he say what action he proposes to take?
§ Lord R. CECILThe answer to the first part of the question is in the negative; to the second, in the negative; to the third, in the affirmative; and in reference to the last part of the question, I beg to refer my hon. Friend to my answer to No. 11.
§ Mr. BUTCHERHave any steps been taken to ascertain on whose behalf this purchase is to be made?
§ Lord R. CECILWe received a positive assurance from the Norwegian Government that nobody except Norwegian subjects are to be allowed to share in the purchase; and, so far as I can estimate the situation, the fear expressed as to purchase on behalf of the German Government has not any foundation.