§ 38. Sir MURDOCH McKENZIE WOODasked the President of the Board of Trade whether he is aware that the German Government has cut down the sterling allotment for imports into Germany to 10 per cent. for the month of June against 25 per cent. for May, 35 per cent. for April, and 45 per cent. for the summer season last year; and whether he has taken, or proposes to take, any action to deal with the matter?
§ Mr. RUNCIMANThe situation referred to is being most carefully watched, but as the action of the German Government is non-discriminatory I do not consider that action on the part of His Majesty's Government can be taken at the moment.
§ Mr. H. WILLIAMSIs it not the case that under Article 10 of the Commercial 351 Treaty with Germany there is absolute veto of prohibition, and does this not absolutely conflict with that Article?
§ Mr. RUNCIMANI am advised that it does not conflict.
§ Mr. HENDERSON STEWARTIs one to assume from what the right hon. Gentleman has said that no action is being taken or can be taken by the Government?
§ Mr. RUNCIMANI should not like to commit myself as to the future. All I said was that the situation is being watched, and that if action be called for it will be taken.