§
Motion made, and Question proposed,
That the Clearing Office (Rumania) Order, 1936, dated the twenty-eighth day of May, nineteen hundred and thirty-six, made by the Treasury under the Debts Clearing Offices and Import Restrictions Act, 1934, a copy of which was presented to this House on the ninth day of June, nineteen hundred and thirty-six, be approved."—[Mr. W. S. Morrison.]
§ 11.9 p.m.
§ Mr. BENSONWe ought to have some explanation of this agreement. This complicated agreement goes back to two previous agreements. These agreements seem to become progressively more severe so far as Rumania is concerned. I do not know whether it is a correct interpretation to draw from that fact that Rumania is not fulfilling the earlier agreements and that it is necessary to put Rumania further into shackles. That is the impression that I got. Before we are asked to pass this Order the Financial Secretary might give us some explanation of it, and also give some indication of what is actually happening about payment for exports from this country. Are the debts of Rumanian importers to exporters from this country mounting up; is the balance of payments becoming more lopsided or are things getting better?
§ 11.12 p.m.
§ The FINANCIAL SECRETARY to the TREASURY (Mr. W. S. Morrison)I will gladly give the hon. Member an. explanation. The reason I did not volunteer one was because this Order has been before the House since the 9th of this month, and apart from certain technicalities its purpose is very clear. He asked me how it was that we had to produce this Order after having had two previous agreements with Rumania. During 1934 1905 the exchange restrictions imposed by the Rumanian Government made it increasingly difficult for exporters of goods to Rumania to obtain payment in this country. As a result of these difficulties two agreements were entered into. The first was in February, 1935. That agreement provided briefly that the Rumanian Government would provide certain sums for the liquidation of debts outstanding. I think I can best express what has happened by saying that that agreement has been only partially fulfilled. Then there was a second agreement by which the proceeds of certain Rumanian exports were to be earmarked for the payment of debts due to traders in this country. I can tell the House that that agreement also broke down, and it was as a result of the position thus created that these negotiations were entered into. The negotiations were protracted, because many difficulties were in the way, but the Order now embodies an agreement which has been come to.
The hon. Member also asked whether I could give the House some idea of the present trade position between this country and Rumania. I cannot profess to give anything like exact figures, but the present outstanding trade and financial indebtedness of Rumania to this country which is covered by this Agreement is between £3,000,000 and £4,000,000. That is a sufficiently substantial sum to warrant every effort being made by agreement to recover it for our nationals.
§ Mr. BENSONIs there any suggestion of mala fides on the part of the Rumanian Government in failing to fulfil their previous agreements? Did the position about the 30,000 tons of rye for this country arise, owing to lack of energy on the part of the Rumanian Government, or were there any physical difficulties in the Way?
§ Mr. MORRISONI made no charge of mala fides against the Rumanian Government. There were certain trade difficulties which were, perhaps, unforeseen, and their currency policy also had certain repercussions, but I make no charge of mala fides.
§ Question put, and agreed to.