§ 43. Sir ASSHETON POWNALLasked the Secretary to the Overseas Trade Department what is the total number of contracts, the total face values, and the Government's total liability under the exports credit schemes for all contracts concluded by his Department for exports to Russia from 1st March, 1930, to date?
§ Mr. GILLETTThe total face value of the 155 contracts entered into under the Export Credits Guarantee Scheme from the beginning of March to the 25th October last in connection with exports to Russia was £4,084,320, on which the liability of His Majesty's Government amounted to £2,450,742.
§ Sir A. POWNALLDoes not the hon. Gentleman think that accepting liability for £1,000,000 in this way on behalf of the British Government—
§ Mr. SPEAKERThat is arguing the question.
§ 53. Mr. DOUGLAS HACKINGasked the Secretary to the Overseas Trade Department the total face value of contracts entered into between exporters in this country and the Russian Soviet Government under the Export Credits Guarantee Scheme since the extension of that scheme to include Russia, and the largest amount of risk outstanding at any one time?
§ Mr. GILLETTThe total face value of contracts entered into under the Export Credits Guarantee Scheme in connection with exports to Russia up to the 25th October last amounted to £4,803,691. It is not the practice to give figures in regard to risks outstanding on particular countries.
§ Mr. HACKINGWill the hon. Gentleman say how much this total face value has to become before it constitutes a loan?
§ Mr. GILLETTI am afraid that that is rather too large a question to be dealt with by way of question and answer; but I shall be very glad to deal with it in debate.
§ Mr. HACKINGWill the hon. Gentleman admit that it now constitutes a loan?
§ Mr. GILLETTNo, Sir. I entirely repudiate the terms "credit" and "loan" as signifying the same transactions. They are obviously of quite a different character, as I think would be well recognised in any financial circles.
§ Major-General Sir ALFRED KNOXIs it not a definite liability?
§ Mr. GILLETTThere is another question on that point.
§ 54. Mr. HACKINGasked the Secretary to the Overseas Trade Department whether there have been any failures on the part of the Russian Soviet Government to pay for exports from this country when such payments became due and where payments were guaranteed to the British exporter under the Export Credits Guarantee Scheme; and, if so, the total amount involved and the reasons given for the withholding of such payments?
§ Mr. GILLETTNo, Sir.
§ 56. Mr. A. M. SAMUELasked the Secretary to the Overseas Trade Department whether he is aware that the Soviet Government has been trying to dispose of cotton textiles and other manufactured goods in the Near East subject to 15 months' credit, with offers of renewal of that credit where necessary; and will he state why His Majesty's Government is guaranteeing the credit of the Soviet Government through the Export Credit Guarantee Scheme in face of the Soviet Government granting 15 months' credit on textile goods in competition with Lancashire exporters?
§ Mr. GILLETTI have seen reports in the Press in the sense of the hon. Member's question, but I have no confirmation of their correctness. As to the second part of the question, the object of His Majesty's Government in extending the Export Credits Guarantee Scheme to Russia was to increase British exports to that country. I have no reason to think that the facilities given in connection with the export of cotton yarns or textiles to Russia have had any appreciable effect on the ability of the Soviet Government to grant credit on textile goods in competition with Lancashire exports.
§ Mr. SAMUELWill the Minister consult the Manchester firms who export textiles to the Near East and act upon their views in this matter?
§ Mr. GILLETTI am always glad to get information, but I do not necessarily act upon it.
§ Mr. MILLSHas the Department yet considered extending the period of credit, especially for the heavy industries?
§ Mr. GILLETTPerhaps my hon. Friend would give me notice of that question?
§ Mr. SAMUELWhen the hon. Gentleman says that he does not act upon in formation—[HON. MEMBERS: "Does not necessarily act!"]—may I ask him whether, if these Manchester people tell him that their trade has been injured by this scheme, he will act upon that information?
57. Lieut.-Colonel Sir FREDERICK HALLasked the Secretary to the Overseas Trade Department if he will indi- 446 cate what security His Majesty's Government have obtained for the liability of £2,882,515, which they have assumed in respect of exports to Russia under the export credits guarantee scheme?
§ Mr. GILLETTThe security required with the approval of the Advisory Committee, has consisted of the acceptance of various Russian trading organisations supplemented in certain cases by the guarantee of the Soviet Government or of a Russian bank.
§ 58. Sir W. DAVISONasked the Secretary to the Overseas Trade Department whether he will instruct the committee dealing with export credits guaranteed by the British Government to decline any further application for credit on behalf of the Russian Soviet Government until that Government have satisfied the award made by the court of international arbitrators in the case of the Lena Goldfields, Limited, whereby the Soviet Government were directed to pay the sum of £12,000,000 in respect of breaches of contract on their part with this British company?
§ Mr. GILLETTNo, Sir. The award was generally reported in the Press, and the Advisory Committee to the Export Credits Guarantee Department who, in dealing with the proposals put before them, take all relevant factors into consideration, have no doubt borne it in mind.
§ Sir W. DAVISONWill the hon. Gentleman explain to the House how it is reasonable to pledge British credit to a country which has just repudiated an arbitration award?
§ Mr. R. A. TAYLORIs the hon. Gentleman aware that this company did not pay up its obligations?
§ Mr. GILLETTI have already answered the question of the hon. Member for South Kensington (Sir W. Davison). The matter, no doubt, would be considered by the Advisory Committee. The facts are well known to them, and they have not decided to make any change.
§ Sir W. DAVISONWill the hon. Gentleman press this point of view on the Advisory Committee?