§ 84. Sir P. HANNONasked the President of the Board of Trade whether he can make any statement on the subject of future arrangements for trade with Italy and of payment for United Kingdom goods already supplied or to be supplied to Italy?
§ Mr. RUNCIMANOn the termination of sanctions His Majesty's Government opened discussions with the Italian Government for the resumption of Anglo-Italian trade. His Majesty's Government regard it as essential that the arrangements to be made should provide for a settlement of outstanding trade debts and they could not contemplate even a temporary arrangement which did not include such provisions. I regret to state that the Italian Government were not willing to accept any arrangement in regard to trade debts which His Majesty's Government could regard as adequate. The negotiations have been temporarily suspended. It is the desire of His Majesty's Government that they should be resumed as soon as it appears that there is a prospect of an agreement being reached. In the meantime, severe restrictions are imposed by the Italian Government on imports from the United Kingdom into Italy. Italian importers may pay sterling direct to United Kingdom exporters only with the specific permission of the Italian authorities. Normally, however, payments in respect of any imports which may be allowed have to be made in lire into a blocked account in Italy. In the absence of an agreement no arrangements for the transfer of these lire to the United Kingdom exporters can be made. As regards Italian exports to the United Kingdom, the position, as stated in a Press notice issued on 18th July, is that exports from Italy to the United Kingdom, other than fresh fruit and vegetables, cannot yet be effected. I am circulating a copy of the Press notice in question in the OFFICIAL REPORT.
§ Sir P. HANNONMay I put a question to my right hon. Friend on the resumption of Parliament as to the result of the resumed negotiations, if they take place?
§ Mr. SHINWELLIs it surprising that this Fascist Government is unable to pay its debts?
§ Mr. THORNEDoes not the right hon. Gentleman think that if the Italian importers paid their debts the same as the Russian importers do, we should not have had this trouble?
§ Following is the notice:
§ Under Italian legislation for the control of the exchanges, exports from Italy other than fresh fruit and vegetables are authorised only after the Italian exporter has surrendered the corresponding foreign exchange to the Italian Authorities or has produced evidence that a bank credit has been opened guaranteeing that the exchange will be surrendered on the due date of payment for the goods. These requirements are inapplicable where the foreign importing country concerned has a clearing or similar agreement with Italy. In the case of the United Kingdom negotiations for such an agreement are still proceeding, and under the Debts Clearing Offices (Italy) Order dated 10th July, 1936, the British importer is under a legal obligation to pay his debt to the Clearing Office and not direct to the Italian exporter: in these circumstances exports to the United Kingdom other than fresh fruit and vegetables cannot yet be effected.