§ Mr. Attlee(by Private Notice) asked the Prime Minister whether he has any statement to make in regard to the negotiations which have been taking place with the Turkish Economic Delegation in this country?
§ The Prime Minister (Mr. Chamberlain)I am glad to say that the negotiations have been successfully concluded and three agreements were signed this morning. The texts will be presented to Parliament and will be available shortly.
In the first place, the Export Credits Guarantee Department, after consultation with their Advisory Committee and with the consent of the Treasury, have agreed to give guarantees in connection with the export to Turkey of goods manufactured in the United Kingdom up to a total of £10,000,000, and the first agreement is an agreement between the Export Credits Guarantee Department and the Turkish Government relating to these guarantees.
1566 The second agreement is an agreement between the two Governments supplementary to the Trade and Clearing Agreement of 2nd September, 1936. In the negotiations for the Guarantee Agreement, it was made clear to the representatives of the Turkish Government that some improvement in the position of the Anglo-Turkish Clearing was an essential condition to the guarantee of any such credits, and this condition is satisfied by the new Agreement.
Under the Supplementary Agreement, imports from the United Kingdom into Turkey for which payment is provided by the compensatory export of Turkish goods to this country will not be limited, but as from 1st July, 1938, the Turkish Government will arrest the accumulation of fresh arrears by limiting imports for which payment is made through the Clearing so that their value does not exceed £500,000 a year, this being the estimated value of the sterling becoming available to pay for them. Provision is also made for the appropriation of substantial sums to reduce the volume of outstanding arrears.
The third agreement enables Turkish orders for warships and other war material to be placed in this country on credit terms, on the general security of the Republic's programme of economic development, and provides for these credits to be guaranteed by His Majesty's Government. Credits cannot, however, be granted under the Export Guarantees Act in respect of munitions of war, and a special agreement signed subject to Parliamentary approval has, therefore, been necessary. The required legislation will be introduced at the first suitable opportunity.
§ Mr. BoothbyWill the Prime Minister carry on with this good work?