§ Mr. ATTLEE(by Private Notice) asked the Secretary of State for Dominion Affairs whether agreements have been arrived at with the Dominions on the subject of trade with Soviet Russia, and whether the Government are proposing to take any action on the subject consequent on the Ottawa Conference?
The SECRETARY of STATE for DOMINION AFFAIRS (Mr. J. H. Thomas)His Majesty's Government in the United Kingdom have recognised the importance of maintaining the effectiveness of the Ottawa preferences against State action by any foreign country which might stultify the intentions of the preferences. This principle is acknowledged in Article 21 of the Agreement with Canada. It necessitates the United Kingdom Government being in a position to discriminate by prohibition against the import of commodities from any such country. This stipulation has rendered necessary the denunciation of the temporary commercial agreement with the Government of the Union of Socialist Soviet Republics signed at London on the 16th April, 1930, which assures to Soviet trade the privilege of most-favoured-nation treatment, and, therefore, would stand in the way of the prohi- 11 bition which might in conceivable circumstances be necessitated by the Ottawa obligation. A Note was therefore addressed on 17th October to the Soviet Chargé d'Affaires in London giving notice of denunciation at six months date in accordance with Article 7 of the agreement, and adding that His Majesty's Government in the United Kingdom remain anxious for the furtherance of trade with Soviet Russia, and are prepared to enter into discussion for the promotion of this end at the earliest moment.
§ Mr. LANSBURYIs the House to take it for granted that the Government have come to this decision without any inquiry or investigation as to whether the conditions obtaining in Russia would necessitate the denunciation of the treaty?
Mr. THOMASThe Government came to this decision on two grounds: First, having entered into an obligation to give preference within the British Commonwealth of Nations, they must take all the necessary steps to see that no country shall frustrate that effort by the dumping of sweated goods; and, incidentally, that does not appear to me to be inconsistent with any views of my hon. Friends opposite. Secondly, the Government, having given that intimation to the Dominions at the Ottawa Conference, equally made it, and make it now, clear that that need not interfere with legitimate and common-sense trading agreements between two nations.
§ Mr. LANSBURYThe right hon. Gentleman has not answered my question. I understand that this action is taken so that, if dumping is proved—if the evil things that the right hon. Gentleman infers are taking place—then the Government will be free to take action. What I am asking him is: Why is this action taken without previous investigation?
Mr. THOMASIf my right hon. Friend means that we were ignorant of previous dumping, I assure him that we had that fully in mind in coming to this decision.
§ Mr. LANSBURYThis is rather important. The House has on several occasions debated this question on the initiation of the Noble Lady the Member for Perth (Duchess of Atholl), and the Government have always taken the line 12 that they had no evidence. What I am asking is: What evidence have the Government to put before the House in support of the action which they have taken? I also desire to ask the Prime Minister whether he thinks it is treating the House of Commons quite fairly to take this action a day before a Debate on the whole subject of the Ottawa Agreements is to take place and a decision of the House taken on it?
Mr. THOMASOn the first point, I would remind my right hon. Friend that, before any action is taken, investigation, examination, and proof will be necessary. All that I am announcing to-day is that we are taking the necessary power to act if, after investigation, we find it necessary. With regard to the question about this being suddenly sprung upon the House, I am quite sure that my right hon. Friend knew perfectly well, not only before to-day but many weeks ago, as a. result of what took place at Ottawa, that this course was inevitable.
§ Mr. ATTLEEMay I ask whether Russia is the only place where goods are produced under sweated conditons, and whether the Government are prepared to take any action against goods produced under sweated conditions coming from Empire countries?
Mr. THOMASSo far as the Ottawa Agreements are concerned, the Government have undertaken to take action against any Government that would be responsible for preventing the preferences given being maintained, and therefore, if my hon. Friend has any fear of sweated goods from other foreign countries, I am quite sure—[Interruption].
§ Mr. ATTLEEMay I take it from the right hon. Gentleman's answer that this action will be taken against sweated goods provided that they come from Empire countries?
§ Mr. MAXTONMay I ask the right hon. Gentleman if this matter was discussed in any way with the technical advisers whom he took with him to Ottawa?