§ 1. Mr. JOHNSTONasked the President of the Board of Trade whether he can give the freight rates charged upon raw cotton from Mombasa to this country and the freight rates charged upon raw cotton between Mombasa and Japan?
§ The PRESIDENT of the BOARD of TRADE (Sir Philip Cunliffe-Lister)The freight rate for raw cotton from Mombasa to the United Kingdom is 40s. per ton of 40 cubic feet, less 10 per cent. deferred rebate. I am informed that the rate from Mombasa to Japan is 32s. 6d. per ton of 40 cubic feet.
§ Mr. JOHNSTONHas the right hon. Gentleman any information to the effect that, on a subsidised Japanese line from Mombasa to Japan, raw cotton is being 955 transported without any freight charges whatever?
§ Sir P. CUNLIFFE-LISTERNo, Sir, I have no information about that, but I will make inquiries.
§ 58. Mr. JOHNSTONasked the Secretary of State for the Colonies whether cotton grown in British East Africa is subsidised by public funds through the Empire Cotton Growing Association; and what proportion of this cotton is annually exported to Japan?
§ Mr. PENNY (Lord of the Treasury)I have been asked to take this question. According to the published accounts of the Empire Cotton Growing Corporation for the year ended 31st March, 1927, the corporation's total expenditure in Nyasaland, Uganda, and Northern Rhodesia amounted to £4,840 16s. 11d. About one-third of the income of the corporation is derived from public funds. This expenditure was incurred almost entirely on experimental work designed to improve the quality of the cotton produced in the several countries. Of a total of 790,748 centals of 100 lbs. exported from His Majesty's East African Dependencies during 1926, 99,281 centals were consigned to Japan. Final figures for 1927 are not yet available, but in the first three quarters of the year 429,340 centals were exported from Kilindini, of which 101,629 were consigned to Japan.
§ Mr. JOHNSTONAre we to understand from that answer that in point of fact the Lancashire cotton industry is paying a subsidy to its former competitors?
§ Mr. JOHNSTONMay we not adduce from the somewhat involved nature of the answer the fact that the cotton manufacturers of this country are being compelled to pay subsidies for the production of raw cotton which their competitors in the cotton industry are able to get for nothing?
§ Mr. JAMES HUDSONWas not the subsidy for the purpose of encouraging 956 the growing of cotton granted on the understanding that the cotton was for consumption in this country, and if it is proved that it goes elsewhere is the Government prepared to make any alteration in the subsidy?
§ Mr. SPEAKERThat question should be put on the Paper.