9 and 10. Mr. A. RAMSAYasked the President of the Board of Trade (1) if his attention has been drawn to a proposed Franco-Hungarian agreement to provide clearing-house arrangements for the mutual liquidation of export trading accounts; and if His Majesty's Government is taking steps to effect similar clearing-house arrangements in the interests of British exporters;
(2) if he is aware that the embargo on the purchase of foreign exchange in certain European countries puts difficulties in the way of exports from Great Britain; and if, in consequence, His Majesty's Government will take steps to set up clearing houses through which the sums due in respect of British exports would be paid out of the sums due in respect of imports to this country?
§ Mr. RUNCIMANI would refer my hon. Friend to the answers given by the Secretary to the Overseas Trade Department on 8th February, and on 10th March, to my hon. Friends the Members for Keighley (Captain Watt) and Huddersfield (Mr. Mabane) respectively, of which I am sending him copies. To these I have nothing to add.
Mr. RAMSAYIs my right hon. Friend aware that while His Majesty's Government appear to be doing nothing in this matter, the Governments of Continental countries are, in fact, making clearinghouse arrangements to the great advantage of their nationals?
§ Mr. RUNCIMANWe made very full inquiries into the working of the clearing-house system, and we came to the conclusion that no clearing-house system at present devised would be to the advantage of British traders.
Mr. RAMSAYIs my right hon. Friend aware that these exchange restrictions on 164 the Continent are creating a virtual embargo on British export trade, and is there nothing within the province of His Majesty's Government that can be done in the matter?
§ Mr. RUNCIMANWe are very well aware that exchange restrictions are a severe handicap on our trade, but we are not of the opinion that the clearinghouse system would get over that difficulty.