§ 18. Mr. James Griffithsasked the Secretary for Mines whether he is aware that 159 the devaluation of the franc is having an adverse effect upon our export trade in coal with France; and what steps he is taking to protect, as far as is possible, this important market, particularly in view of subsidised competition from Germany?
§ Captain CrookshankI know of no evidence to support the suggestion made in the first part of the question; the second part therefore does not arise.
§ 19. Mr. Griffithsasked the Secretary for Mines whether he is aware that coal-owners in Great Britain have been warned that the resources of the Italian clearing houses are reaching exhaustion; and whether he can make any statement on the matter and indicate what steps he is taking to deal with it?
§ Captain CrookshankThe Anglo-Italian Commercial Agreement of 6th November last provided, inter alia, that the Italian Government would authorise the importation of United Kingdom coal, coke and solid fuel up to a quarterly c.i.f. value of 43.5 million lire. It also provided that no importation in excess of this amount should, except by agreement between the two Governments, be allowed when there is any delay in transferring payments in respect of current trade under the Clearing Agreement of the same date. The latter agreement provided that the proceeds of imports of Italian goods into the United Kingdom were to be used in specified proportions for the liquidation of outstanding debts and for payment for current exports to Italy. As a result of inquiries made by the Government, it has recently become apparent that very large Italian purchases of coal have been made, already considerably exceeding the value of the quota; and that, so far as it is possible to estimate the future position of the clearing, it is probable that if the contracts already made are fully executed, there will be little, if any, margin for payment for further coal purchases during the present year. The position as regards 1938 is also receiving consideration. In these circumstances, I have warned the coal trade organisations that the greatest caution should be exercised in accepting any further commitments in the Italian market. The position which has arisen 160 is to be discussed informally with the Italian Government.
§ Mr. GriffithsHas the hon. and gallant Gentleman's Department or the Government any policy at all to meet these fluctuations which adversely affect our export trade from time to time; and does not the hon. and gallant Gentleman think the time is overdue for taking steps to secure some kind of international agreement to regulate and control the export trade in Europe?
§ Captain CrookshankThose are very large questions to be dealt with in a supplementary answer. I have already given a comprehensive reply to the hon. Gentleman's original question, and the matter, as I have said, is at present under consideration.
§ Mr. GriffithsIs it not a fact that those concerned in the export trade of this country feel a great deal of alarm about both the French and Italian markets and about what may happen in the next three or four months; and is not the hon. and gallant Gentleman's Department also concerned about it and is not something being done to assist the coal export trade, in regard to these matters, seeing that it has already been so badly hit?
§ Captain CrookshankOf course, we are watching these matters with great care but this is a problem arising out of quotas and is not a question of fluctuations of exchange. It is quite a different matter.