HC Deb 30 July 1940 vol 363 cc1132-4
12. Mr. Silkin

asked the Minister of Economic Warfare whether shipments of oil and oil-products to Spain from America are greatly in excess of last year's quantities; whether he has information to show that oil is reaching Germany from Spain; and whether he will give an assurance that every endeavour will be made to ensure that no more oil reaches Spain than she legitimately requires for her own normal consumption?

13. Mr. Lipson

asked the Minister of Economic Warfare whether he is taking steps to prevent the importation into Spain of oil in excess of her normal requirements?

Mr. Dalton

Shipments of oil and oil products to Spain from America during the first half of this year have been substantially greater than during the corresponding period of last year. Before the collapse of France the only route by which oil could reach Germany from Spain was by sea across the Western Mediterranean and through Italy, and we relied upon French naval patrols to prevent such traffic. Since the collapse of France many features of the situation have become obscure, and I am sending an officer of my Ministry to Spain this week in order to confer with the Spanish authorities and with His Majesty's Ambassador at Madrid. The desire of His Majesty's Government is to enable Spain to receive adequate supplies of oil for her own internal consumption, but not for re-export, and to maintain her oil stocks at a reasonable and steady level.

Mr. Silkin

In view of the fact that the exports for this year are greater than last year, is it not obvious that Spain has been allowed to accumulate stocks of oil which may possibly be used against us?

Mr. Quintin Hogg

In view of the fact that Spain is non-belligerent, why give her any oil at all?

Mr. Dalton

In the light of the answer that I gave, I think it is evident that the stocks of oil in Spain are likely to be at a higher level now than they were a year ago, and it is precisely to investigate this and kindred matters that I am sending my oil adviser to Spain.

Mr. Lipson

Then I presume the hon. Gentleman's answer means that the stocks in Spain will be taken into account in determining how much will be allowed to go to Spain in future? Will he give an assurance that Spain will not be allowed to play the part which Italy played prior to her entry into the war?

Mr. Dalton

The stocks of oil, when ascertained, will obviously be an element in determining the future import requirements. With regard to Italy, I hope we have all learned a lesson from that experience.

Mr. Wedgwood

Can we ensure that the credits we are making to Spain will not be used to purchase oil?

Mr. Dalton

I think that is a different question, and I am not sure that it falls within my Department.

16. Mr. Shinwell

asked the Minister of Economic Warfare whether he has any information on the imports of lubricating oil into Spain; and whether he has any reason to believe that some portion of this oil is passing into German hands?

Mr. Dalton

Yes, Sir, I have a good deal of information on the subject of these imports. I have no evidence of reexports of lubricating oil to Germany, but stocks in Spain appear to be so high relatively to domestic consumption that no navicerts are now being issued.

Mr. Shinwell

While appreciating the decision of the right hon. Gentleman, is he not aware that many months ago it was decided to operate navicerts in order to prevent contraband proceeding to neutral countries which might pass into the hands of the enemy, and why, after all the activity in relation to oil, has he now decided to take action or why has action not been taken very much sooner?

Mr. Dalton

I think that perhaps my hon. Friend will get some part of the answer to his inquiry if he will await the statement which I shall make at the end of Questions on the navicert question generally.

Mr. Shinwell

But does the right hon. Gentleman not realise that we were told quite categorically that the navicert system was to be put into operation in January last, and now, many months afterwards, we are still discussing whether it is to be put into operation?

Mr. Dalton

The navicerts have not been compulsory up to now. They have been a convenience availed of by certain shippers and shipowners. I think the hon. Gentleman had better wait for my statement at the end of Questions.

Mr. Garro Jones

Has His Majesty's Ambassador in Spain been requested to inquire of the Spanish Government whether they are selling oil to our enemies across the Pyrenees? Whether the answer is in the negative or in the affirmative, will it not provide the right hon. Gentleman with a basis for action?

Mr. Dalton

I have already stated in answer to a previous Question that I am sending an officer out to make contact with the Spanish Government.

Mr. Gallacher

Is it not the case that at this time, when America decided to restrict the supply of oil to Spain, the Government made an agreement with Spain which provides for the supply of oil?

Mr. Dalton

The hon. Gentleman, as usual, is completely deluded.