HC Deb 21 February 1935 vol 298 cc530-4
63 and 67. Major NATHAN

asked the Secretary of State for the Colonies (1) whether he is aware that it has been disclosed that at least one director of several tin companies in London operating the restriction scheme is implicated in the shellac and pepper speculation; and whether, in view of the anxiety both in this country and in Malaya, he is prepared to reconsider the Government's support of the tin restriction scheme and to initiate an inquiry into the operation of the tin restriction scheme and the methods and activities of the persons and concerns responsible in London for its direction?

(2) whether he will state the names of the persons and companies in this country responsible for directing and operating the tin restriction scheme and, in the case of companies, the names of directors thereof?

Sir P. CUNLIFFE-LISTER

I apologise for the length of the answer, but I think the House would like to have the fullest information possible.

The tin regulation scheme which came into operation in March, 1931, was an agreement between the Governments of Malaya, Nigeria, Bolivia and the Netherlands East Indies, the two British territories acting with the approval of His Majesty's Government. The operation of the scheme was vested in an international committee consisting of representatives of the Governments concerned. The control and operation of the scheme are vested entirely in these Government representatives, who alone have authority to take decisions.

When the scheme was instituted in 1931 it was decided that the various Government delegates should have the opportunity of having the advice of producing and trading interests, and provision was made accordingly that such persons should be associated as advisers, but that all decisions should be taken by the Government representatives alone. The system introduced in 1931 has been followed ever since.

The constitution and operation of the scheme were exhaustively reviewed by the World Economic Conference and received its full approval. The considered opinion of the conference is summarised in the report of the Sub-Committee on Tin, which was adopted by the conference. This report has been reproduced in Annex II to the report of the main Economic Commission of the conference, that is, the World Economic Conference. In the course of that report the Committee stated: The sub-committee consider that the existing scheme of control is framed upon sound lines; that it is in accord with the principles which have been accepted by this conference as those which should govern the framing of plans for the co-ordination of production and consumption; that it has worked smoothly in actual practice for a period of over two years; and that it has been largely successful in achieving its main objectives. The report also states: that the break-down of the control scheme would, in existing conditions, involve the very gravest difficulties, and might easily mean disaster for the industry, the potential producing capacity of which is at present roughly double the recent rate of consumption. All tin-producing countries are vitally interested in the continuance of the scheme of control until such time as consumption approximates closely to the potential production now in sight. The conference recommended that the countries which are not members of the International Tin Commission should enter into negotiations with that commission.

In October, 1933, the international tin agreement was renewed for a further period of three years from 1st January, 1934.

I will place in the Library a print of this agreement and also of the agreement dated 10th July, 1934—I think that ought to be 10th January, 1934—made by the signatory Governments for the constitution and operation of the buffer stock scheme.

In addition to the Governments of Bolivia, Malay States, Netherlands East Indies, Nigeria and Siam, who were parties to the original agreement the French Government, on behalf of Indo-China and the Belgian Government on behalf of the Congo, have become parties to the agreement, and arrangements also exist with the Portuguese Government and with three important producers in Cornwall.

I will circulate in the OFFICIAL REPORT the list of Government delegations constituting the International Tin Commission, and the list of advisers.

Major NATHAN

While thanking the right hon. Gentleman for his very full answer, may I ask him whether he will consider the advisability of publishing in some convenient form, perhaps as a White Paper, the tin regulation scheme itself and the other documents to which he referred in his answer, and also the relevant report of the sub-committee of the World Economic Conference? The right hon. Gentleman did not appear to answer the actual question on the Paper, and I would ask him, in particular, whether the Government are prepared to initiate an inquiry into the operation of the scheme and the methods and activities of the persons and concerns responsible?

Sir P. CUNLIFFE-LISTER

With regard to the last question, I thought I had answered it very completely by saying that what I think was the best tribunal that could investigate it, and that is the World Economic Conference, consisting of 66 countries, both producers and consumers, and investigated the scheme and it operation and thought it absolutely sound, and vital that it should continue. As regards the other suggestion, I think it is, if I may say so, a very practical one, and I shall be very glad to arrange to publish as a White Paper both the documents which confirm the full scheme and also the relevant report of the World Economic Conference on the subject. I think that would probably be much more convenient to hon. Members than merely having to look at copies in the Library.

Mr. WILMOT

Will the right hon. Gentleman answer that part of the question which refers to the connection between those now operating the tin restriction scheme and those recently involved in pepper and shellac gambling operations?

Sir P. CUNLIFFE-LISTER

I can give the House the most complete assurance that the tin scheme from start to finish has never been concerned in any commodity except tin. I appreciate the difficulty of following this very long answer, but I have explained in it that the whole of the effective decisions of the tin commission are vested entirely in the Government representatives. There are a number of technical advisers, but the operation of the scheme, from its initiation in 1931 by the Labour Government, was, and ever since has been, vested in the representatives of the Government.

Following is the list:

Members of Government delegations constituting the International Tin Commission:

Belgium:

Bolivia.

France:

Malay States:

Netherlands East Indies:

Nigeria:

Siam:

Persons who attend the meetings in an advisory capacity:

Consumers' Panel:

Mr. John Hughes, nominated by the United Steel Corporation, the American Iron and Steel Institute and the National Lead Company to represent United States tin consuming industries.

The Welsh Plate and Sheet Manufacturers Association has been requested to nominate a British representative of tin consuming industries.