§ 1. Sir J. D. REESasked the Secretary of State for India whether Messrs. Ernsthausens, now Howiesons, formed a company after the War began, called East India Exports, Limited; whether such company has been taken over by or leased to Messrs. Grace Brothers and Company, who now seek a place on the British Hides Committee; and whether he will inquire into this matter, lest German influence, which formerly completely dominated this trade, be perpetuated in any direct or indirect manner?
§ The SECRETARY of STATE for INDIA (Mr. Montagu)The answer to the first part of the question is in the affirmative. I understand that Grace Brothers (India) have either acquired the business of East India Exports, Limited, or purchased the Howieson interest in that company. If my hon. Friend can supply me with information supporting the suggestion contained in the last portion of the question, I will consider whether any further inquiry is necessary.
§ Mr. ROCHHas my right hon. Friend's attention been called to a recent case in the Prize Court, in which the position of Grace. Limited, was considered?
§ Mr. MONTAGUYes. Before this transaction took place we inquired from the Board of Trade and Foreign Office as to whether there was anything against this firm of Grace (India), and we were informed that there was nothing.
§ Mr. ROCHHas my right hon. Friend read the remarks of the President of the Prize Court with regard to this case?
§ Mr. MONTAGUThis happened some time ago, but this firm is not that firm. This is a firm set up in Calcutta.
§ Sir J. D. REESIs the right hon. Gentleman aware that the activities of Howiesons (Ernsthausens) are viewed with the utmost suspicion and disapproval by the whole British commercial community in Calcutta, and would the right hon. Gentleman therefore strain a point and make inquiries, because it is a rather difficult matter?
§ Mr. MONTAGUIt is difficult. The Government of India and the India Office are constantly endeavouring to set up a hide industry in India which will get rid permanently of all German connection, indirect or direct, but I am informed in this case that the business has been sold outright to this new firm.
§ Mr. HOLTWill the right hon. Gentleman carefully investigate the connection between this new firm and the firm of Grace Brothers, which has been commented upon in the Prize Court?
§ Mr. MONTAGUCertainly. In these matters our activities are only with Indian affairs, and we must take the advice of the Departments concerned, the Board of Trade and the Foreign Office.
§ Sir J. D. REESIs the right hon. Gentleman aware that so long as Howieson Ernsthausen, or Ernsthausen Howieson, is persona grata with the Government of India, the suspicions of the British commercial community in Calcutta will never be allayed?