HC Deb 29 April 1941 vol 371 cc336-7
22. Major Sir Edward Cadogan

asked the President' of the Board of Trade whether he can make any statement as to the raw material and labour available for export industries?

21. Mr. Higgs

asked the President of the Board of Trade whether he is prepared to make a statement defining the Government's present attitude towards the encouragement, or otherwise, of overseas trade?

The President of the Board of Trade (Mr. Lyttelton)

It has to be recognised that few exports do not in some way make a demand on resources such as labour, material, plant, and shipping space which are in heavy demand for the war. It is, therefore, necessary, as I have said on several occasions and as the Industrial and Export Council recently repeated in a circular letter to all Export Groups, to apply a selective policy to exports and to encourage those which help the war effort. The tests are (1) whether the exports earn or save exchange needed for the payment of essential imports; (2) whether, in the case of the sterling area or Allied countries, they are essential to the importing country; (3) whether the value of the exported product its high in relation to the imported raw material and (4) whether the article can be manufactured and exported without putting an undue strain on resources needed for other war purposes. Subject to these overriding considerations it is the policy of His Majesty's Government to encourage exports and to maintain trade connections as far as the circumstances permit. I recognise that the booking of export orders is rendered very difficult by the need to apply these various tests, but my Department have given and will continue to give general guidance to the Export Groups to help them in answering inquiries. I am in constant touch with the other Departments concerned on the question of supplies of labour and raw material for manufacture for export.

Mr. Cary

Have we increased our exports to the United States?

Mr. Lyttelton

Yes, Sir.

Mr. Shinwell

Do I understand the right hon. Gentleman to reply in the affirmative to that Supplementary Question?

Mr. Lyttelton

I mean that recently we have increased our exports.