ANGLO-ITALIAN CLEARING AGREEMENT.

HC Deb 01 June 1937 vol 324 cc842-3

29. Mr. Petherick

asked the President of the Board of Trade how many firms in the United Kingdom, having sold goods to Italy the payment for which is covered by the Italian Clearing Agreement, have received payment at a lower rate of exchange than was provided for in the agreement, thus losing money to which they were entitled; what are the total amounts of such losses; and what steps have been taken by the Italian Government to enforce its decree which ordered the Italian consignees of the British goods involved to make good the differences in exchange?

Mr. Stanley

I presume my hon. Friend refers to the transfer of debts covered by the Payments Agreement of 1935. The Anglo-Italian Clearing Agreement of November last provides that these debts shall be transferred at the rate current on the date when transfer is notified to the United Kingdom Clearing Office, but it falls to the debtors to make supplementary deposits of lire to cover the exchange differences resulting from the devaluation of the lira. Therefore, although the creditor receives in the first instance only the equivalent of the original deposit, it does not follow that the balance is to be regarded as a loss. In fact, considerable sums have already been transferred in respect of supplementary deposits and it is, I think, premature to attempt to estimate the amount likely to remain unpaid. As regards the last part of the question, I understand that the Italian authorities have instructed Italian banks to notify the debtors of their obligations in the matter under Italian law.

Mr. Shinwell

Will the right hon. Gentleman take note that there is no civil war in Italy as far as can be ascertained, and no excuse for the Italian Government not meeting their financial obligations?

Mr. Stanley

I think that the hon. Member is under a complete misapprehension. If he will read the answer to the question, he will see that the additional sum due to the depreciation of the lira has nothing whatever to do with the Italian Government. The matter was discussed at some length in general last week, and if he will refer to the report he will be able to refresh his memory.

Mr. E. J. Williams

Is it not the fact that the Italian Government still own a considerable amount of money for Welsh and Durham coal?

Mr. Stanley

Perhaps the hon. Member will put that question upon the Paper.

Mr. Shinwell

Are we to understand that the Italian Government have no control over Italian traders?

Mr. Stanley

It is a matter of civil liability between traders of one country and traders of another.