§ 44. Mr. A. Hendersonasked the President of the Board of Trade whether he will make a statement concerning the conditions of British trade with Manchuria; and whether any plans are being discussed to counteract the difficulties in this connection arising from the Japanese control of foreign exchange?
§ Mr. StanleyUnited Kingdom exports to Manchuria are undoubtedly hampered by the exchange-control system in force in that territory, for the purposes of which transactions with Japan are not treated as foreign. These exports, which are of relatively small value, have followed a fluctuating course; but in general have tended to decline in recent years. Other British interests, such as oil, shipping and insurance have also been adversely affected. In reply to the second part of the question, I can assure the hon. Member that His Majesty's Government are watching the whole position closely.