HC Deb 06 August 1940 vol 363 cc33-4

The following Question stood upon the Order Paper in the name of Mr. LEACH:

58. To ask the Chancellor of the Exchequer whether he is aware that certain textile exports to the United States of America do not need a licence and that this omission of control allows exporters the means to invest money in the United States of America against the national interests; and what steps he is proposing to put an end to this practice?

Mr. Leach

I put this Question down to the President of the Board of Trade, a much more appropriate authority.

Sir K. Wood

I am sorry about that. The system of export licensing is designed primarily to meet considerations of supply and of economic warfare and not to control the financial aspects of export transactions. The point raised by my hon. Friend is covered by the Defence (Finance) Regulations, under which the export of goods to the United States is allowed only upon conditions, the effect of which is that the export is paid for in dollars and that the dollars so realised accrue to the United Kingdom Exchange Control.

Mr. Leach

Is this particular gap now closed?

Sir K. Wood

I would not like to give an absolute assurance, but if my hon. Friend has any instances which he would like to bring before me, it would be helpful.

Mr. Tomlinson

Will the right hon. Gentleman look into the possibility of exporters exporting cloth to America and then following it up and collecting on the other side?

Sir K. Wood

I should be glad to look into any instances of which my hon. Friend knows, where that could be done.