HC Deb 05 May 1938 vol 335 cc1035-8
Mr. Bellenger

(by Private Notice) asked the Chancellor of the Exchequer of the imports of store cattle from the Irish Free State to this country in 1930 and 1937, respectively; and the number and value of the imports of fat cattle from the Irish Free State in 1930 and 1937, respectively?

Captain Wallace

As the answer involves a number of figures, I will, with my hon. Friend's permission, circulate it in the OFFICIAL REPORT.

Following is the answer:

whether the devaluation of the franc foreshadows any adjustment of the sterling exchange; what effect the franc devaluation will have on British overseas trade and what agreement has been reached under the Tripartite currency Agreement as to the future of the dollar-sterling-franc exchanges?

Sir J. Simon

In reply to the hon. Member's question, perhaps I may be permitted to make a short statement.

At the beginning of this week the French Government informed us that they did not consider it possible that the franc could be maintained at its then level and that they were contemplating a lower rate. The French Government made a similar communication to the Government of the United States and, as is provided in the Tripartite Agreement, consultations between the three Governments then took place. The French Government have given assurances that it is their intention to achieve as the eventual result of their policy a rate corresponding to the economic position and giving to France no competitive trade advantage, and that the present downward movement would be the last. In these circumstances, after consultation with the American Government and in agreement with them, we have reached the conclusion that the action which is being taken by the French Government should be regarded as not inconsistent with the Tripartite Agreement, and that Agreement, in the view of all three Governments, continues with full force and effect.

Mr. Bellenger

In view of that statement, may I ask the right hon. Gentleman whether it is contemplated by His Majesty's Government that no further approval will be given to any unilateral devaluation of the franc, or, perhaps, the dollar exchange in the future, if such should be mooted?

Sir J. Simon

We must deal with the present situation as we find it. As the hon. Member has referred to the dollar and I have seen in the newspapers a wild rumour that there might be a lowering of the value of the dollar, I should like to take the opportunity of saying that that has been officially and vigorously denied in Washington, and equally, of course, we are not contemplating any adjustment of the sterling exchange.

Mr. J. Griffiths

Having regard to the effect that this devaluation of currencies has upon the export trade, will the right hon. Gentleman inquire particularly into the position that in the last nine months the devaluation of the franc has been driving Welsh coal out of the French markets, and that German coal is taking its place because it is being subsidised by the German Government as an offset to the devaluation of the franc?

Sir J. Simon

The effect of these things upon our external trade is, of course, always under the closest consideration. The hon. Gentleman will have observed the assurance given by the French Government that it is their intention to achieve as the eventual result of their policy a rate corresponding to the economic position. The fulfilment of that assurance would, of course, be a protection against the dangers to which the hon. Member has referred.

Mr. Griffiths

But will the right hon. Gentleman look into the point that we are not able to keep our markets because German exporters have the advantage of a subsidy which offsets the devaluation of the franc?

Lieut.-Colonel Sir A. Lambert Ward

Is not this the third occasion within three years on which the French Government have given assurances that no devaluation of the franc was contemplated?

Mr. Assheton

Will the right hon. Gentleman make it clear that these devaluations of currency are largely the result of Socialistic policies?

Mr. Noel-Baker

Are not the devaluation of the franc and the financial situation in France the result of the failure of the Disarmament Conference?