§ Mr. O'CONNOR(by Private Notice) asked the President of the Board of Trade if he has any statement to make regarding the French 15 per cent, surtax and the French Import Turnover Tax?
§ Mr. RUNCIMANShortly after the suspension of the Gold Standard here the French Government imposed a surtax of 15 per cent. ad valorem on a wide range of British goods on importation into France, in spite of the fact that when previously the French currency had depreciated to a far greater extent no special duties were imposed in this country on French goods. This surtax did not apply to the goods of all countries and was therefore discriminatory in effect. Subsequently the position was aggravated by the exemption from the surtax of goods from certain other countries whose exchange is depreciated more than sterling and by the imposition of a differential import turnover tax from which Belgian and Italian goods came to be exempted.
His Majesty's Government in the United Kingdom have throughout taken the strongest objection to these discriminations against British goods and pressed for their removal. They bad, indeed, good reason to suppose that the position would be remedied; hut in spite of all their efforts these two discriminatory taxes continue to be levied on British goods. In these circumstances His Majesty's Government unfortunately found it necessary a short time ago to intimate to the French Government that they could not countenance the continuation any longer of these discriminations and that, unless the French Government could see their way to remove them at an early date, His Majesty's Government would be compelled to impose on a range of French goods special additional duties roughly equivalent in their incidence to the amount of the discrimination at present applied in France against British goods, and to retain such duties so long as the French discrimination continues.
§ Mr. O'CONNORMay I be permitted to congratulate my right hon. Friend on his patience and firmness?
§ Mr. HANNONCan the right hon. Gentleman say whether, in cases of this kind and the recurrence of this sort of 254 discriminatory action against us in international trade, the Government have any fixed and deteminate policy to deal with it at once without wasting time?
§ Sir HERBERT SAMUELWill such action require the sanction of Parliament?
§ Sir W. BRASSIs it not a rather dangerous principle in view of the depreciation of the yen and the effect it is having upon the cotton trade in the East and in our colonies generally?
§ Mr. RUNCIMANI am afraid that I cannot say at the present moment what bearing this will have upon the Japanese situation, which is being dealt with quite separately. In reply to the right hon. Gentleman, I would say that the only way with which it can be dealt in accordance with the Import Duties Act, Section 12, is by the issue of an Order, which, of course, would have to be laid in the usual way here.
§ Mr. HANNONMay I ask the President of the Board of Trade when he will give effect to the substance of the communication which he has made to the French Government Are we to continue weakly to be discriminated against on every occasion without consequent action being taken against it?
§ Sir W. BRASSSurely my right hon. Friend must realise in regard to this principle if differentiation against the depreciation of currency in this case that the same sort of thing must happen by the depreciation of the yen.
§ Mr. RUNCIMANI am afraid that my hon. and gallant Friend has not produced an exact parallel. If he has any question to put on the Japanese situation, I shall be much obliged if he will put it on the Order Paper. In reply to my hon. Friend the Member for the Moseley Division of Birmingham (Mr. Hannon), who wants to know if prompt action will be taken, I can tell him that prompt action has been taken.
§ Sir WILLIAM DAVISONWill the Government take powers so that they can take prompt action in all cases and so that there will be no delay in taking action?
§ Mr. RUNCIMANI cannot give an undertaking that we will not attempt to deal with these matters in a friendly way. We must certainly have an opportunity 255 to do that. When our friendly representations are not met, we must take the course which is laid down in the Import Duties Act.
§ Mr. MAXTONAm I to understand from the right hon. Gentleman's reply to the right hon. Member for Darwen (Sir H. Samuel) that this matter has been decided by the Import Duties Advisory Board?
§ Mr. RUNCIMANNo, Sir. I did not mention the Import Duties Advisory Board. This is a decision for which His Majesty's Government are responsible.
§ Mr. MAXTONHas the Board nothing to do with the fixation of the amount?
§ Mr. THORNEIs this the result of dining and wining together last night?