§ 64. Mr. RANKINasked the President of the Board of Trade whether his attention has been called to the fact that under the Anglo-Spanish Clearing Order payment for British fruit imports from the Canary Islands has to be sent through Madrid, and that since these islands are held by General Franco such payment is not reaching the producers concerned; and whether, in view of the considerable British capital invested in the Canary Islands, any steps can be taken to remedy the situation and to prevent the collapse of this trade?
§ The PARLIAMENTARY SECRETARY to the BOARD of TRADE (Dr. Burgin)Yes, Sir, and I must apologise for the length of the answer. His Majesty's Government have had under careful consideration the position which has arisen in regard, not only to the Canary Islands, but to all those Spanish territories which are covered by the Anglo-Spanish Payments Agreement of January last, and I am glad to have the opportunity of making the following statement:
The clearing procedure instituted under the Anglo-Spanish Payments Agreement of 6th January, 1936, has ceased to work satisfactorily and has placed serious obstacles in the way of Anglo-Spanish trade. It has accordingly been agreed between His Majesty's Government and the Spanish Government that the clearing procedure should be suspended. Under a Treasury Order which is being issued to-day, debts due in respect of Spanish goods imported into the United Kingdom after 19th December, 1936, are not payable to the Anglo-Spanish Clearing Office. Debts which are now due or may fall due hereafter in respect of Spanish goods imported into the United Kingdom up to 19th December, 1936, inclusive, must be paid to the Clearing Office. Information must continue to be supplied as heretofore to the Customs authorities in respect of Spanish goods imported into the United Kingdom.
It has been agreed in principle with the Spanish Government that the bulk of the sterling obtained from the export of all Spanish goods to the United Kingdom will be used for the purchase of United Kingdom goods. The necessary arrangements will be made by the Spanish Government in concert with His Majesty's Government. In existing 2621 circumstances traders will, of course, be well advised to exercise due caution in making arrangements for exports to Spain and exporters should satisfy themselves, before shipping, that the intending importer has obtained any necessary permission to import and pay for the goods to be shipped.
His Majesty's Government will, when circumstances permit, take all appropriate steps to ensure, so far as possible, that outstanding debts due from Spain to this country are fully liquidated. The Spanish Government have given to His Majesty's Government an assurance that they for their part will arrange for the complete liquidation of such debts in a relatively brief period as soon as they are in a position to do so.
Informal assurances similar to those referred to above, as regards the utilisation of sterling obtained from exports to the United Kingdom, have been obtained in regard to the parts of Spanish territory not under the control of the Spanish Government.