72. Sir F. HALLasked the Under-Secretary of State to the Air Ministry if his attention has been called to the criticism passed by the Select Committee on National Expenditure in their last Report as to the action taken by the Department responsible for financing the Cellonite Company, of Basle, and the refusal to arrange with British companies for the supply of cellulose acetate; what action is proposed to be taken in view of the terms of such Report; and if he can state what amount of German capital is invested in the Basle company which has had such preference over British companies in this matter?
§ Mr. KELLAWAYThe original contract referred to by my hon. Friend was made by the War Office and was inherited by the Ministry of Munitions when it became responsible for aircraft production in 1917. The Ministry of Munitions' dealings have been with the British Cellulose Company, and no financial assistance has been given to the Cellonite Company, of Basle. I have no information as to the amount of German capital invested in that company. I desire to add that, in view of the Select Committee's Report, I am appointing a Committee to consider and report to me on the criticisms and recommendations made therein. Until I receive the Report I cannot make any statement as to future action.