HC Deb 24 June 1918 vol 107 cc726-9
58. General CROFT

asked the First Lord of the Admiralty whether, during 1916, the Chief Cable Censor was asked by a member of the Trade Department of the Admiralty to grant special cable facilities to a firm of which he was the principal shareholder; whether the Chief Censor acceded to this request after pointing out that it was absolutely necessary to confine all exemptions to strict and well-defined limits; if so, whether any advantages were gained by these special cable facilities; and whether the Government intend to take any action?

Dr. MACNAMARA

From information furnished by the Chief Cable Censor at the War Office, I understand the facts regarding the matters raised in this question are as follows: In April, 1916, the firm of Harris and Dixon, Limited, applied through my right hon. Friend the Member for East Worcestershire (who was then assisting in the Trade Division of the Admiralty) to have their cablegrams to their office in Spain exempted from delay. The ground of the application was that these cablegrams had reference to the chartering of Spanish steamers, mainly for carrying iron ore and food to this country or the Allies. The Chief Cable Censor, after requiring and receiving an assurance that the delay to these cablegrams was detrimental to national interests, granted the concession, which already at that date applied to a number of other firms whose business related to urgently needed war supplies. In September, 1916, the question was reconsidered by the Chief Cable Censor, who came to the conclusion that these concessions were not satisfactory, and a new system was devised, as a result of which they were withdrawn.

General CROFT

In view of the conflict between the various answers given in this House, I beg to give notice that I shall call attention to this whole question on the Consolidated Fund Bill to-day.

The PARLIAMENTARY SECRETARY to the MINISTRY of BLOCKADE (Mr. Leverton Harris)

With your permission, Sir, I would ask for the indulgence of the House whilst I make a short statement regarding the charges which the hon. and gallant Member for Christchurch (General Croft) has thought fit to make against my personal honour in a question which he has to-day asked in the House. At the beginning of the War I offered my services to the Admiralty, and I was officially attached to the Trade Division, where I had to deal mainly with commercial matters. In April, 1916, I received a communication from the firm of Harris and Dixon, Limited, a firm in which I was at that time a large shareholder, but my directorship of which I had shortly before thought it proper to resign. In this communication the firm pointed out that the delay of sometimes three days in cables which they were exchanging with their branch office in Bilbao (and which largely related to the chartering and insurance of Spanish steamers which were carrying iron ore and food to this country or to the Allies) was making business impossible, and causing great delay to shipping, and they asked whether their name could be added to the existing list of firms whose cables were specially dealt with by cable censor. If this request had been made by any other firm than one with which I was connected I most certainly should have followed the usual course, and would have asked the Department for which I was working to put forward an official recommendation to the Cable Censor that the name should be added to the list, but, in view of my connection with this firm, I considered that my correct course was not to put forward any recommendation whatsoever officially, but simply to inform the Chief Cable Censor (an official over whom I had no control, and for whom another Government Department is responsible) of Harris and Dixon's request and to leave the matter in his hands to decide.

I want to make it perfectly clear to the House that the statement in the hon. and gallant Member's question that I had asked the Chief Cable Censor to grant special cable facilities to this firm is absolutely untrue. I merely communicated the firm's request to the Censor for him to grant or refuse, as he thought best. The Chief Cable Censor, in acknowledging Harris and Dixon's request, pointed out that no exemptions were made in private interests, but that if I would give an assurance that the firm's telegrams to Spain were mainly or largely on Government business and the delay was detrimental to national interests, he would add the name to the list. To this I replied that I felt no hesitation in stating that the delay in these telegrams was detrimental, and might be very detrimental, to national interests, and I added that, if the Chief Cable Censor should desire, I would gladly see the proper authorities at the Board of Trade and Ministry of Munitions and have my opinion confirmed.

May I permitted to say that as this firm has been largely employed by the Government, and members of it have represented, and are representing to-day, the Government in important negotiations abroad, I thought some time ago that in view of my official position it might be more proper to entirely sever my connection with a family business which has been in existence for 150 years. I accordingly disposed of my shares to the other shareholders, and to-day I have no interest of any sort whatever in the business.

I wish to thank the House for granting me that indulgence which it is always ready to grant to any Member whose personal honour has been attacked, and for listening to this statement.