HC Deb 30 July 1919 vol 118 cc2108-9
65. Mr. STURROCK

asked the Prime Minister whether he is aware that British engineering firms tendering for contracts in Belgium find themselves unable to compete with German firms tendering for the same work; whether this is due to the German exchange being at present so low and the British exchange so high; whether the Government or the Board of Trade has had the matter under consideration; and, if so, whether a statement can be made on the whole matter?

Sir A. GEDDES

Cases of the nature indicated have been brought to the notice of the Board of Trade. In the ordinary-course movements of the foreign exchanges tend to reflect changes in relative levels of prices as between different countries, but the position is at present abnormal. There is ground for thinking that the level of prices in Germany has not risen so much as would be suggested by the depreciation in the value of the mark in neutral countries, and that to this extent and while this condition lasts exports from Germany are stimulated. With regard to exports from the United Kingdom, these would certainly tend to be encouraged by a fall in the value of sterling in terms of foreign currency. It is perhaps hardly necessary for me to add that the position of the foreign exchanges is engaging the close attention of His Majesty's Government.

Mr. G. TERRELL

Is Belgium at liberty to purchase any material which she requires from Germany?

Sir A. GEDDES

Yes. She is at liberty to make arrangements of that sort.

Sir M. DOCKRELL

Is Germany under obligation to make restitution of the special machinery which she stole from Belgium, and which is so essential to Belgium to enable her to restore her industries?

Sir A. GEDDES

That is provided for in the Peace Treaty that has been circulated.