HC Deb 03 February 1930 vol 234 cc1484-6
34. Captain CROOKSHANK

asked the Secretary to the Overseas Trade Department whether seeing that all purchases of goods for Russia are now made by Russian Government organisations, on application they are all automatically guaranteed under the export credit scheme; and, if not, will he state the reason?

Mr. GILLETT

The answer to the first part of the question is in the negative. It is not the practice to give reasons for decisions taken on the recommendation of the Advisory Committee of the Export Credits Guarantee Department.

Captain CROOKSHANK

Is it not a fact that all goods sent to Soviet Russia have to be consigned to official Government organisations there?

Mr. GILLETT

They are all imported by concerns connected with the Russian Government, but the hon. and gallant Gentleman will be aware that there are other factors to be considered, one being the length of time for which the application may be available.

35. Captain CROOKSHANK

asked the Secretary to the Overseas Trade Department whether it is open to Russian trading organisations, such as Arcos, registered in Great Britain, to obtain an export guarantee to Russia; and whether in the event of default, such guaranteed sum would become- payable to such firms by His Majesty's Government?

Mr. GILLETT

It is open to any exporter domiciled in this country to apply for an export credits guarantee in connection with the export of goods wholly or partly produced or manufactured in the United Kingdom. Any exporter who obtains such a guarantee is entitled, subject to the conditions of that guarantee, to receive immediate payment in the event of default on any bill covered thereby. It is most improbable, however, that the Advisory Committee will agree to the giving of such guarantees to any of the Russ an trading organisations in this country.

Captain CROOKSHANK

Why should they not be given an export guarantee?

Mr. GILLETT

Because, as I have just stated, the business concerns in this country are the importers. If, therefore, they become exporters, it would practically be the same concerns acting as both importers and exporters.

Mr. MILLS

Is the hon. Gentleman aware that in the Dartford Division of Kent, presuming guarantees can be obtained for a long period, a thousand men may be put to work manufacturing agricultural tractors?

Mr. W. J. BROWN

Is it the case that a maximum of one year has been imposed in regard to British exporters desiring to do business with Russia, and has the same limit been imposed on British exporters desiring to do business with other countries?

Mr. GILLETT

It is not considered advisable to make a public statement on this question.

39. Sir ROBERT HAMILTON

asked the Secretary to the Overseas Trade Department if he is aware of the offer recently made by Russia to Norway to take 300,000 barrels of cured herring if credits were extended for 12 months; and if contracts on a similar basis would be treated as eligible for guarantee under the exports credits scheme?

Mr. GILLETT

My attention has been drawn to Norwegian Press reports in the sense of the first part of the question. Contracts on a similar basis for British herring would be eligible for consideration by the Advisory Committee of the Export Credits Guarantee Scheme.

Mr. W. J. BROWN

Would the hon. Gentleman's reply still apply if the period for the contracts in question extended over 12 months?

Mr. GILLETT

I am afraid my last answer applies to this question also.

Mr. BROWN

Is not the House entitled to ask the Minister in charge of a Department for the conditions he has laid down in connection with this matter?

Mr. WARDLAW-MILNE

Is it not the fact that the period covered would be at the discretion of the Advisory Committee?

Mr. GILLETT

Yes, Sir.

Mr. SPEAKER

Hon. Members are entitled to ask questions, but they are not always entitled to obtain an answer.

Mr. BROWN

May I ask the Minister to say what public interest it is that accounts for his reticence on this subject?

Mr. GILLETT

I am only following the usual custom in regard to these matters. It would be almost impossible for the Advisory Committee to do their work if a great deal of the information were given to the public.

Mr. BROWN

Is there at the present time any differentiation drawn between the case of Russia and other countries?

An HON. MEMBER

Yes, there is.

Mr. GILLETT

No, Sir, we do not consider that any difference is made.

Major McKENZIE WOOD

Does not the hon. Gentleman think that his Department might take the initiative towards securing a similar contract for our herring; and would he find out also if this agreement with Norway has been completed?

Mr. GILLETT

I will make further inquiries.

Major WOOD

Will the hon. Gentleman take the initiative and see whether a contract of the same kind cannot be secured in order to help our fishermen?