§ 27. Mr. CHORLTONasked the Secretary to the Overseas Trade Department what steps he proposes to take with a view to reducing unemployment by making possible the acceptance of the orders which Russia is prepared to place in this country?
§ Lieut.-Colonel J. COLVILLE (Secretary, Overseas Trade Department)If my hon. Friend refers to the Export Credits Guarantee Department, the policy of the Advisory Committee has been to consider individual applications on their merits and this policy is continuing. The Committee, however, are not prepared to provide facilities for credits of more than 18 months.
§ Mr. HAMMERSLEYAre we to understand that no existing negotiations will be endangered by reason of the Government's decision to abrogate the Treaty with Russia?
§ Lieut.-Colonel COLVILLEI am not quite clear what the hon. Member means by "existing negotiations." The position is that during the six months' duration of the Commercial Agreement Russia is entitled to be considered in matters of credit on exactly the same basis as other nations. After that time it will depend on circumstances, and particularly on the discussions the Advisory Committee may have with the Russian Government.
§ Mr. HAMMERSLEYDo I understand that if negotiations are taking place in respect of orders for Russia at the moment that British manufacturers are no worse off by reason of the fact that we have decided to abrogate the Commercial Treaty?
§ Lieut.-Colonel COLVILLEThat is so.
§ Mr. MORGAN JONESMay I ask whether the Government have made themselves acquainted with the views of the hon. Member for Tamworth (Sir A. Steel - Maitland) on the question of Russian trade?
§ Sir A. KNOXWould not the best plan to secure orders from Russia be to arrange some system of barter?
§ 30. Mr. KIRKWOODasked the Secretary to the Overseas Trade Department if he will give Russia trading terms which will enable them to place orders in this country immediately; and whether he is aware that the official trade representatives of Russia in this country state that, if credit facilities were extended to Russia, they would place orders for shipbuilding and engineering which would employ 25,000 workers immediately?
§ Lieut.-Colonel COLVILLEI would remind the hon. Member that the terms on which guarantees are given under the Export Credits Guarantee Scheme for exports to Russia, as to other countries, are determined after consultation with the Statutory Advisory Committee. Important orders are, in fact, being placed on the terms on which that committee are at present prepared to recommend guarantees. The question of what additional orders might be placed if the committee were prepared to guarantee longer credits is hypothetical.
§ Sir W. DAVISONCan the hon. and gallant Member say whether credits are being given beyond the terms of the existing trade arrangement, of which notice to terminate has been given?
§ Lieut.-Colonel COLVILLEYes, Sir. The last credit given was for 18 months, but not for longer than 18 months.
§ Mr. KIRKWOODIs it not possible to give longer credit than 18 months?
§ Mr. CHORLTONNo.
§ Mr. KIRKWOODThe hon. and gallant Member will answer, not you. The Secretary for Overseas Trade knows that 18 months is a barrier to trade and that, if the Government would allow extended credit, we could get work which would employ 25,000 shipbuilders. I want to know whether the Secretary for the Department will consider placing before the Committee the suggestion for giving extended credits?
§ Lieut.-Colonel COLVILLEThe Advisory Committee do not recommend credit beyond 18 months.
§ Sir A. KNOXCould not the trade unions supply the funds?
§ Mr. KIRKWOODThey have spent£10,000,000 in supporting their own people during the last 10 years.