HC Deb 17 May 1938 vol 336 cc210-2
27. Major Dower

asked the President of the Board of Trade whether the maximum rates of duty conceded to Germany under the Trade Agreement of 1933 are affording, when subsidy is taken into consideration, the same amount of protection as that which they were designed to afford when the Agreement was signed?

Mr. Stanley

The duties to which my hon. and gallant Friend refers are, with one exception, ad valorem duties. The extent to which such duties may have been offset to the German manufacturer by payment of subsidy is not a matter on which any detailed information is available, but I would point out that the average value of imports from Germany of certain goods covered by the Trade Agreement of 1933 is now higher than when that Agreement was made.

Major Dower

That may be so in one or two cases, but would it not be possible for my right hon. Friend to see that the spirit of the Agreement is carried out?

Mr. Stanley

The hon. and gallant Member has asked me a specific question. In these cases the duties are ad valorem duties, and the effect of an increase in price means that the duty is increased accordingly and, therefore, there is the same amount of protection as previously.

Mr. Levy

Would it not be wise to have a specific duty and an ad valorem duty so that whichever suited better could be used in cases of this kind?

Mr. Stanley

Quite clearly in cases of this kind where fears are expressed of dumping in this country, the matter would have to be considered if prices fell, but, as I have pointed out, the price has been rising and, therefore, an ad valorem duty has a greater effect than a specific duty.

Sir C. Granville Gibson

Is the right hon. Gentleman not aware that not only in Germany but as regards the imports from many other countries, there is a subsidy which is sufficient to nullify the import duties, and that the dumping which takes place is very harmful to the industries of this country?

Mr. Stanley

I agree that the situation wants continual watching, but I should not like the impression to get abroad from questions of this kind that there has been a sudden and alarming increase of German imports into this country. As a matter of fact, German imports in the first quarter of this year show a substantial decrease on that of the preceding quarter.

31. Mr. G. Strauss

asked the President of the Board of Trade whether he has now received information as to the subsidy paid on the export of Opel motor cars from Germany to this country?

Mr. Stanley

Inquiries are in progress, but I regret I am not yet in a position to make a statement. In the meantime, General Motors, Limited, the importers of the Opel cars, have informed me that the statistics of imports during the early months of this year give a false impression of the sales of their cars. These sales are smaller this year than last; and the imports in the early months of the year are intended to cover sales for some time ahead and to allow for re-exports. I may add that only 13 cars were imported from Germany in April.

Mr. Strauss

Will the Minister bear in mind, in pursuing this investigation further, that the export subsidy on Opel motor cars and other cars is mainly imposed in order to get more foreign currency into Germany to facilitate their armament manufactures?

Commander Locker-Lampson

Is it not very damaging to allow any subsidised articles to come in in these circumstances?

Mr. Stanley

I agree that the situation wants careful watching as do all trade matters concerning the totalitarian countries, where the system is not the same as ours, but I am satisfied from the information I have at present that there is no reason whatever to anticipate during the year any large increase in the sale of German motor cars in this country.

Commander Locker-Lampson

But is there not a subsidy?

40. Mr. G. Strauss

asked the President of the Board of Trade whether he is aware that exporters of German goods to England are now permitted by the German authorities to use blocked marks in part payment in order to reduce the sterling price of the goods; and whether he will take steps to prevent the money of British nationals being thus used as a concealed subsidy to increase the import of German goods into this country?

Mr. Stanley

I understand that as a concession to United Kingdom holders of blocked marks, the German authorities have occasionally allowed part of the price of imports from Germany to be paid with these marks, but I understand that this practice is not encouraged by the German authorities, as it deprives them of free foreign exchange.