HC Deb 28 February 1924 vol 170 cc675-9
61. Mr. D. G. SOMERVILLE

asked the Prime Minister whether any steps have been taken or are in immediate contemplation for modifying any post-War Allied agreements in addition to the reparation levy on German goods?

Mr. CLYNES

I cannot answer such vague questions. If the hon. Member will put specific inquiries and will state the particular inter-Allied agreement or agreements which he has in mind, I will endeavour to supply him with the information which he desires.

62. Mr. SOMERVILLE

also asked the Prime Minister the amount received by this country from Germany under the 26 per cent. reparation claims levy since its introduction till the date of its reduction to 5 per cent.; whether the reduction has been agreed to without any equivalent compensation; and whether he proposes to publish the negotiations with Germany on the matter?

Mr. SNOWDEN

From March, 1921, up to the end of December last, the receipts were approximately £18,000,000. In answer to the second part, I am not clear what the hon. Member means by equivalent compensation. We have obtained from Germany the maximum we think she is capable of performing at the present time, without starting new inflation. As regards the third part, the outcome of the negotiations has been given by my hon. Friend, and details are published to-day in the Board of Trade Journal. There are no Papers I could lay.

Mr. SOMERVILLE

Is it a fact that these reparations are equivalent to about £90,000,000 a year, and that the Government have given up 21 per cent., and have not received any consideration in respect of that?

Mr. VIVIAN

Can the right hon. Gentleman tell us how much of the £18,000,000 came here in the form of goods and how much came in the form of money? That might interest the hon. Member who puts the question.

Mr. SPEAKER

We cannot have a Debate on the subject.

Mr. PRINGLE

Can the right hon. Gentleman indicate to what extent he regards this levy as a charge upon the Germans, or a protective duty in favour of the British manufacturers?

Mr. SNOWDEN

It is very difficult to say what proportion of the duty is paid by the German exporter, the trader, or by the consumer.

Mr. SOMERVILLE

Was any consideration received in respect of the 21 per cent. given up?

Mr. SNOWDEN

I do not know what the hon. Member means by "consideration," but I would point out to him that we have been receiving nothing since November last. Under this proposal we do expect, at any rate, to receive about £150,000 a month.

Sir LAMING WORTHINGTON-EVANS

Will the right hon. Gentleman say whether the agreement which been come to with the Germans will be laid as a Paper, or is it to be published in the Gazette?

Mr. SNOWDEN

All the information that it is possible to give is published in the Board of Trade Journal to-day, which contains full information in regard to procedure, for the information of traders. There are no Papers we can lay.

Sir L. WORTHINGTON-EVANS

When a question was answered on Monday it was stated that an agreement had been made with the Germans, and I want to know whether that agreement will be laid.

Mr. A. M. SAMUEL

Arising out of the original question, was any attempt made by our Government, in return for the concession of giving over these duties, to get some concession for ourselves in order that our goods might go into Germany on better terms?

Mr. SNOWDEN

I do not know whether that matter was considered. In reply to the right hon. Member for Colchester (Sir L. Worthington-Evans), I may say that the terms are published in the Board of Trade Journal to-day, and I prefer that he should look at them.

88. Captain BENN

asked the Chancellor of the Exchequer whether the whole amount under the German Reparation (Recovery) Act accrues to the British Treasury, or whether the sum is divided between the Allies according to the Spa percentages?

Mr. SNOWDEN

The whole amount has accrued to the British Exchequer and no sum has been paid over to the Allies.

Captain BENN

Are we due to divide it according to the agreement made at Spa with our Allies?

Mr. SNOWDEN

Up to January, 1923, we were entitled under an Allied Agreement to keep what we collected. The hon. and gallant Member knows that for the last two or three months the position with regard to reparation has been somewhat confused. We are keeping the proceeds of this duty and we propose to do so anyhow until there is some further general arrangement.

Sir L. WORTHINGTON-EVANS

Does the right hon. Gentleman say that this also applies to the 5 per cent.? Shall we retain the whole of that?

Mr. SNOWDEN

Certainly.

Mr. PRINGLE

Is this not accounted for in some way to the Reparation Commission, and, if so, in what way?

Mr. SNOWDEN

I understand that during the last 15 months there have been no adjustments made at all among the Allies by the Reparation Commission.

Captain BENN

If we collect reparations apart from our Allies, what becomes of our Agreement at Spa to divide the reparation according to percentages?

Mr. SOMERVILLE

May I take it then, that the £18,000,000 referred to in the previous answer has been paid into the Treasury?

Mr. SNOWDEN

Certainly. In answer to the question of the hon. and gallant Member the whole thing is in abeyance at the present time.

Mr. LAMBERT

Has the Reparation Commission therefore ceased to function?

Mr. SNOWDEN

Practically.

89. Lieut.-Colonel HOWARD-BURY

asked the Chancellor of the Exchequer whether he will ensure that the reduction in the rate of German reparation duty from 26 per cent. to 5 per cent. will cause a reduction in the price of goods to the consumer or will he allow the profit to go to the importer?

Mr. SNOWDEN

The goods are subject to the competition of British and of other foreign goods and I do not see what other guarantee could be given to the consumer as to prices. The new arrangement simply restores the position to what it was before 17th November last, in that no part of the levy is borne by the importer.

Lieut.-Colonel HOWARD-BURY

Can the right hon. Gentleman say whether this concession will mean a loss of £5,500,000 a year to the Exchequer, and will it not hamper the recovery of those industries which are already much affected by German competition?

Mr. SNOWDEN

The difference will be between about £800,000 a month and £150,000 a month.

91. Mr. PENNY

asked the Chancellor of the Exchequer whether the Dominions were consulted before the new agreement was made between ourselves and the German Government reducing the 26 per cent. duty to 5 per cent.?

Mr. SNOWDEN

The answer is in the negative. The Act refers to goods imported into the United Kingdom. None of the Dominions has similar legislation in force.

Sir L. WORTHINGTON-EVANS

Is it not the case that the Dominions are entitled to a percentage of what this country recovers as reparations? Has the right hon. Gentleman given that up without consulting the Dominions?

Mr. SNOWDEN

I wonder whether our predecessors, when they reduced the percentage from 50 to 26, took a precaution with regard to that.

Mr. PENNY

Will the Minister tell us whether the British representative on the Reparation Commission was consulted before the alteration was made?

Mr. SNOWDEN

That does not arise out of this question.

Mr. BECKER

Is this a Government attempt to bring in Free Trade?

92. Mr. PENNY

asked the Chancellor of the Exchequer if he will issue immediately as a White Paper the new agreement in regard to the German Reparation (Recovery) Act?

Mr. SNOWDEN

The terms of the agreement have already been explained and details are published in the Board of Trade Journal to-day.

93. Mr. PENNY

asked the Chancellor of the Exhequer if he will state the estimated amount to be received by the new agreement of the German Reparation (Recovery) Act?

Mr. SNOWDEN

The monthly receipts may be estimated at £150,000.