HC Deb 04 May 1939 vol 346 cc2073-5
Mr. Attlee

(by Private Notice) asked the Prime Minister whether he can make a statement regarding the proposed exchange of materials between His Majesty's Government and the Government of the United States of America?

The Prime Minister

The Government of the United States of America have recently inquired whether His Majesty's Government would be prepared to consider the exchange of certain raw materials, required as strategic reserves by the United States Government, for other commodities of which the United States Government have surpluses and which would be a useful addition to our own stores against the contingency of war. His Majesty's Government are fully alive to the importance of this suggestion, and they have replied that, while fully sharing the United States Government's objections to attempts to substitute barter for the ordinary processes of international trade, they agree that in the special circumstances of the present time the exchange of materials which would not enter into normal commerce is not open to the same objections provided that world prices are not thereby increased. His Majesty's Government have expressed their readiness to enter into discussions as to the means by which the obvious practical difficulties which arise in such a transaction should be surmounted. Negotiations have accordingly been opened with the United States Government.

Mr. Mander

Does the Prime Minister know whether the United States Government will be prepared to consider exchanging some of their Ministers for ours?

Mr. Garro Jones

May I ask the Prime Minister whether this arrangement will involve the purchase of large quantities of raw materials from private owners in this country, and whether he is aware that the raw materials which the United States Government propose to exchange are already in their hands, and, therefore, will not involve purchases from people who know that these purchases are about to be made, as the purchases of rubber, tin, and so on, will involve in this country?

The Prime Minister

Yes, Sir. We are quite aware of all that.

Mr. Garro Jones

Have negotiations yet been opened with the owners of rubber and tin supplies in this country, and have the Government yet arranged with them the prices at which the Government would take over their surplus stocks?

The Prime Minister

No, Sir.

Mr. Garro Jones

May I ask when the negotiations will be opened? Are these people to have prolonged notice that the Government are going to be in the market for articles which they are bound to purchase?

The Prime Minister

I think the hon. Gentleman had better study a little more carefully the statement which I made, and I think he will then see that that statement does contain an appreciation of the difficulty of which he has spoken.

Mr. A. Edwards

May I ask the right hon. Gentleman whether, when the negotiations are advanced, he will open up similar negotiations with the Government of Canada, and is he aware that yesterday the Prime Minister of Canada expressed great concern about the supplying of Canadian raw materials to Germany as war materials?

The Prime Minister

I think we had better deal with these questions one at a time.