§ 4. Sir Arnold Gridley
asked the Minister of Economic Warfare whether he is aware that the Italians are purchasing Spanish iron-ore for which payment is being made in blocked pesetas; that the Spanish Government are insisting on British purchasers paying in sterling on the dollar sterling exchange basis, despite the fact that very large sums in blocked pesetas are held in Spain by British nationals; and whether he proposes to take any steps in the matter?
§ Mr. Cross
I am not aware of the precise terms of payment which may have been arranged between the Italian and Spanish Governments for a transaction of this nature. But His Majesty's Government are hoping shortly to open negotiations with the Spanish Government during which all questions relating to trade and payments will be taken into account.
§ Mr. George Griffiths
Is it not a fact that some hon. Members thought the Spanish Government would be looking very favourably upon the British after what we did in the Spanish war?