30. Mr. Rostron Duckworthasked the President of the Board of Trade whether, in view of the excessive depreciation of the Japanese yen and of the fact that wages in the Japanese textile industry are only about one-fifth of those ruling in Lancashire, he will take steps to have countervailing duties imposed in British Empire markets to compensate for this unfair advantage held by the Japanese cotton export industry?
Mr. StanleyThe problem of Japanese competition in British Colonial markets has been dealt with by a system of quotas which have been applied generally except in cases where international engagements preclude that course. In my view this 1690 method is more effective than that suggested by my hon. Friend.
§ Mr. LeachDoes the right hon. Gentleman look forward to the day when everything coming into the country will be tariffed and everything going out subsidised?
31. Mr. Rostron Duckworthasked the President of the Board of Trade whether his attention has been drawn to the fact that £1,391,000 of cotton textiles were imported into Kenya, Uganda, Tanganyika and Nyasaland in 1936 from Japan, and £197,000 worth of such goods from the United Kingdom; and when action will be taken to modify the Congo Basin Treaties and thus enable us to limit the imports of Japanese textiles into these territories?
Mr. StanleyI am aware that the position is as stated by my hon. Friend, except that imports from Japan amounted to £1,296,000. As regards the last part of the question, I would refer to the answers which I gave on 31st May to the hon. Members for Withington (Mr. Fleming) and Burnley (Mr. Burke).
Mr. PalignIs the right hon. Gentleman aware that the reason why the natives cannot buy goods from this country is because they are paid less wages than the wages paid in Japan?
Colonel Sandeman AllenAre we to understand from that answer given in May that the Congo Basin Treaties cannot be altered at all?
§ 34. Mr. Kennedyasked the President of the Board of Trade whether he is aware that, while British cotton exports to India have to overcome a tariff barrier of 20 per cent., the cheaper Indian products are rapidly displacing the products of British industry in the home and world market; and whether he can state the extent to which the Indian cotton trade is owned and controlled by British bankers and financiers?
Mr. StanleyI am afraid I cannot accept the statements in the first part of the question. There is no evidence of any recent substantial increase of imports of Indian cotton yarns and manufactures into the United Kingdom; while total 1691 exports of Indian cotton piece-goods to all markets, although they have increased, are still very small compared with United Kingdom exports. The situation in Empire markets, in which Indian goods enjoy free entry, is being kept well in mind in the negotiations for a new trade agreement between the United Kingdom and India; and one of the major objects in these negotiations is a satisfactory settlement in regard to United Kingdom trade with India in cotton goods. I have no official information on the subject of the second part of the question, but I am not aware that United Kingdom bankers or financiers have any substantial interest in the Indian cotton industry, and I understand that the extent of the interest of United Kingdom industrialists and merchants in that industry is relatively small.