§ 4. Mr. CLOUGHasked the Parliamentary Secretary to the Overseas Trade Department whether his latest information from any of the parts of the British Empire shows that, as a result of high prices, British goods have been suffering from foreign competition on a cheaper scale owing to rates of exchange and other causes; and, if so, in what direction of manufactured exports this tendency is most pronounced?
§ Mr. KELLAWAY (Secretary, Department of Overseas Trade)During 1920 the total volume of British exports to Empire markets was adversely affected by the scarcity of British export coal. During the same period, American and Japanese 736 competition have proved formidable and trade was lost on account of lower prices, particularly as regards American railway material, motor vehicles, and tinplate, and cheap Japanese textiles and hardware. In these cases the encroachment was not assisted by the general level of the exchanges; but any disadvantage in this respect was counter-balanced by-ability to quote firm prices and definite dates of delivery. There is no evidence that British goods have been displaced during the past year to any serious extent by competitive goods of European origin, but present indications suggest that more severe European competition must be anticipated in the near future. I should add that the proportion of total British exports sold within the Empire has displayed a continuous and gratifying increase during the past year. In the last quarter of 1920, 40.1 per cent. of our exports went to Empire markets, as compared with 37.1 per cent. for the year 1913.