§ 30. Mr. Chorltonasked the President of the Board of Trade whether he is aware that £1,500,000 is still owed to this country by Turkey, mostly to Lancashire cotton concerns, which, until paid, makes it impossible to do further trade with Turkey; and is he prepared to earmark a part of the loan lately arranged for the reduction of this outstanding debt of £1,500,000?
§ Mr. StanleyI am aware that a sum of over £1,500,000 is at present awaiting transfer through the Anglo-Turkish Clearing to United Kingdom exporters to Turkey. As was explained by my right hon. Friend, the Secretary to the Department of Overseas Trade, in the Debate in this House on 4th July, the Turkish Government, under the terms of the Supplementary Anglo-Turkish Trade and Clearing Agreement of 27th May, 1938, arrests the accumulation of fresh arrears 2654 in the clearing, by limiting imports from this country for which payment is made through the clearing to the amount of the sterling estimated to be available to pay for them. Provision is also made in the Clearing Agreement for reducing the volume of outstanding arrears by the appropriation of substantial sums in connection with the Anglo-Turkish Guarantee Agreement of 27th May which I assume my hon. Friend has in mind in the last part of the question. These arrangements were made after consultation with, and with the general approval of, the United Kingdom trade organisations concerned. I would add that there is no quantitative restriction on United Kingdom goods imported into Turkey under the compensation provisions of the Clearing Agreement.