13. Sir F. HALLasked the President of the Board of Trade whether German exporters are refusing to deliver goods imported into this country until they are paid in full therefor; whether, as a result of this device, the 50 per cent, Reparations Import Duty, which is supposed to be collected from Germany, in effect falls upon the British consumer; and if he will state what steps have been taken to counter this evasion of the arrangement made to penalise Germany for her breach of the Treaty of Versailles?
§ Sir P. LLOYD-GREAMEI understand that a number of exporters have adopted this attitude. I think it is a mistake to assume that consumers in this country usually get the advantage of the low prices at which Germans can sell their goods and the imposition of the levy, even if it raised the price to the importer, would not necessarily involve an increase in the price paid by the consumer. Moreover, attempts by Germany to evade the Reparations levy in this way carry their own sanction by diverting purchasers to other sources of supply. I would also remind my hon. and gallant Friend that the Allies are pursuing a common policy.
§ Lieut.-Commander KENWORTHYIs this system producing any revenue at the moment, or any appreciable amount?
Sir F. HALLIf it does not bring in the revenue which was anticipated, will it not have the effect of keeping exports from Germany out of this country, and will not that be for the benefit of the working classes and manufacturers on a whole?
§ Sir H. BR1TTAINWould it not be a good thing to allow this scheme three or four months' run before criticising it?
§ Sir P. LLOYD-GREAMEI quite agree. There is not the least doubt that the House expressed the view by a very large vote that this proposal, re-enforced as it will be by our Allies, will operate either as a sanction to compel Germany or as a means of collecting Reparation.
§ Lieut-Commander KENWORTHYHas it brought in any money yet?
§ Sir H. BRITTAINIt has not had time.
§ Sir P. LLOYD-GREAMEThey have given us notice that they propose to do so.
§ 14. Mr. MILLSasked the President of the Board of Trade whether he has received any complaints from British importers to the effect that German manufacturers are refusing to export goods to this country unless they are paid their full value plus the 50 per cent. duty payable under the German Reparation (Recovery) Bill; and whether trade with Germany is brought to a standstill in consequence?
§ Sir P. LLOYD-GREAMEI understand that in a number of cases German exporters are attempting to secure payment by British importers of the full purchase price. Such action, if persisted in, will no doubt reduce the volume of German imports, and purchasers will obtain their supplies from other sources.
§ Mr. HOGGEIn view of the fact that this will be decreased, when does the Government propose to get the money that they are going to collect by way of indemnity through this reparation scheme?
§ Sir P. LLOYD-GREAMEI do not think it is practicable to enter into a Second Reading discussion of the Reparation Bill in reply to every question. I have already said that this scheme will undoubtedly operate either as a sanction to enforce the payment of reparations, or as a means of collecting them.
§ Major M. WOODWill not the result be that we shall have to pay part of the reparations ourselves?
§ 18. Captain WEDGWOOD BENNasked the President of the Board of Trade whether it has been decided that in cases where a British importer agrees with a German seller to pay the 50 per cent, charge under the German Reparation (Recovery) Act he is to be charged not 50 per cent. of the amount actually paid to the German, but 100 per cent. 1511 of that amount; and whether he regards this procedure as an appropriate method of making Germany pay?
§ Sir P. LLOYD-GREAMEThe Act provides for a levy of 50 per cent. on the value of the German goods, this being denned as the amount which an importer would give for them, including the amount of the levy. It follows that for every £100 that the importer pays to the German in cash, he is required to pay £100 to the Customs. I certainly consider that the Act is an appropriate instrument for the enforcement of reparations.
§ Lieut.-Commander KENWORTHYDoes not that mean that the British consumer is actually paying this money?
§ Mr. KILEYIs it to be understood that this duty is only levied on the amount paid, and not on the value charged on the invoice?
§ Sir P. LLOYD-GREAMEI think that all the misconception arises from dealing with this as though it were a duty. It is a perfectly simple proposition, half the money being paid to the German and half to the Customs.
§ Sir P. LLOYD-GREAMEPerhaps the hon. Member will put down a further question.
§ 25. Lieut.-Commander KENWORTHYasked the Prime Minister if his attention has been called to the pronouncement of Monsieur Briand in the French Senate to the effect that the French Government intends to resort to force against Germany after 1st May next; whether British troops will be involved in this new demonstration; whether additional British troops will be required for the Army of Occupation; whether an Allied Council will meet before 1st May, and, if so, where; and whether the German Government has made any new proposal regarding reparations?
§ 29. Captain W. BENNasked the Prime Minister whether any plan has been conditionally approved by His Majesty's Government for the enforcement of sanctions should the German Government not meet the requirements of the Repara- 1512 tions Commission on 1st May: and whether the opinion of the House of Commons will be sought before any final approval to such a plan is given?
§ The PRIME MINISTER (Mr. Lloyd George)The German Government are still in default on reparations, trial of persons accused of offences against the laws of war, and disarmament. They have so far shown no inclination to put forward practical proposals for carrying out the Treaty of Versailles in these respects. Under these circumstances, it is imperative that the Allies should confer as to the further steps which may be necessary to enforce compliance with the conditions of the Treaty.
§ Captain BENNWill the opinion of this House be sought before any kind of assent is given by this country to any occupation of further German territory?
§ The PRIME MINISTERThe House of Commons can have a discussion at any time, by simply asking that the Foreign Office Vote be put down for discussion. If there be a desire on the part of any section of the House to have such a discussion, I hope they will make the necessary communication.
§ Sir H. BRITTAINAre not questions of this kind an incentive to the Germans to avoid their obligations?
§ Lieut.-Commander KENWORTHYMay I ask the Prime Minister if he will reply to the part of my question, which asks whether there will be any Allied Council before the 1st May, and also as to whether British troops are expected to be involved in this matter?
§ The PRIME MINISTERI have no doubt that there will be communications before the 1st May. Should the House of Commons desire to have a discussion on the subject, I repeat that it is open to any section of the House to ask that the Foreign Office Vote be put down.
§ Mr. HOGGEIs this to be limited to communications, or, as in the right hon. Gentleman's first answer, is a definite conference going to take place between the Allies and ourselves. If so, will that take place before 1st May, when and where?
§ The PRIME MINISTERI cannot answer that. It must be left to the discretion of the Government as to the method of communicating with our Allies.
§ Mr. HOGGEAssuming, as the right hon. Gentleman says, that the difficulty is 1st May, can he say whether communications must take place before 1st May, and will the House be in a position to know what the Government propose to do on the British side before 1st May?
Sir F. HALLHas not the British public made it perfectly plain that they are desirous of seeing that the German people pay up to the last farthing for the reparation due to this country, and are not the people of the country satisfied to leave the matter in the hands of the Government?
§ The PRIME MINISTERWe shall proceed on the assumption that the people of this country mean to see that the Treaty of Versailles is enforced. If the House of Commons takes a different view, it is open to the House of Commons to make representations on the subject at any time.
§ 49. Captain W. BENNasked the Prime Minister whether the French Bill similar to the German Reparation (Recovery) Act has been amended so as to provide that it will only operate when similar legislation has been passed by the other Allies; and whether he will under these conditions introduce a Bill to amend the Act to the same effect?
§ The PRIME MINISTERThe answer to the first part of the question is in the negative. The remainder, therefore, does not arise.
§ Captain BENNHas the right hon. Gentleman seen a report in which an Amendment such as that I refer to is carried?
§ The PRIME MINISTERMy hon. Friend has not seen that that Amendment was cancelled afterwards.