§ 17. Major Guy Lloydasked the Secretary of State for the Colonies what representations he has had regarding the low price of rubber in Malaya; what action he is taking; on what terms, and by whom, was the recent bulk sale of Malayan rubber made to the U.S.A.; and why was the price so low.
§ Mr. George HallI have received representations regarding the price of rubber in Malaya from the Rubber Growers' Association and have also had a telegram from Kuala Lumpur purporting to be sent on behalf of all sections of the rubber producing industry With regard to the second part of the Question I would refer to the answer given to the hon. Member for Hornsey (Mr. Gammans) on 6th February. The recent bulk sale of Malayan rubber to the U.S.A. was made by His Majesty's Government at a price of 20¼ United States cents f.o.b. Malaya, which represents the actual cost to His Majesty's Government of the rubber now being shipped. The price is effective until 31st March.
§ Major LloydIs the right hon. Gentleman aware that under this most iniquitous arrangement the cost of production is not nearly met for the producer and there is nothing like rehabilitation of the plantations? The only people who score are the Americans. Why?
§ Mr. GallacherPrivate enterprise.
§ Mr. Walter FletcherIs not the Minister aware that this is in fact a subsidy paid at the expense of the housewife in the loss of dollars to the American consumer?
§ Mr. HallThat is not the case; the price paid for American rubber is similar to the price which is paid to the French and to the Dutch.
§ Mr. FletcherThat does not alter the fact that it is a subsidy.
§ Mr. John LewisIs the Minister sure that if he decides to raise the price of rubber in Malaya it will bear some direct relationship to the cost of production, and the wages paid to the natives?
§ Mr. HallAn economic adviser has been sent to Malaya to deal with the question of fixing a price and also to deal with the internal economic situation there.
§ Lieut.-Colonel Sir Walter SmilesCould the Minister tell the House what is the actual cost of production of rubber today and what was the cost in 1938 and 1939?
§ Mr. GammansWhy was the price fixed at this level without any consultation whatever with the rubber growers who at the moment are overwhelmingly Asiatic rubber growers?
§ Mr. HallIt must be understood that the price fixed was fixed for rubber which was in stock. Thereis very little rubber being produced in Malaya at the present time; in fact, the large estates have not produced any at all. A number of small producers are producing and they say they can produce at the price which they are paid.
§ Mr. GammansWhat representations have the right hon. Gentleman had to show that they can produce? The overwhelming amount of rubber is being produced by Asiatics.
§ Mr. Ralph AsshetonCan the right hon. Gentleman assure the House that His Majesty's Government are paying the greatest regard to the need for dollars which we want to pay for our food?
§ Major LloydIn view of the unsatisfactory nature of the reply, I beg to give 358 notice that I will raise the matter on the Adjournment.
§ Mr. KirkwoodThe rubber robbers.
§ 28. Major John Morrisonasked the Secretary of State for the Colonies what steps he proposes to take to ensure that the native producer of rubber in Malaya receives equally fair treatment and remuneration with the native producer of rubber in Ceylon.
§ Mr. George HallI would refer the hon. Member to the very full answer which I gave to the hon. Member for Hornsey (Mr. Gammans) and my hon. Friend the Member for West Leicester (Mr. Janner) on 6th February, to which I have nothing to add.
§ Mr. W. FletcherWill the right hon. Gentleman agree that this is the first occasion on which the Americans have contracted out from taking the proportion of rubber they were normally taking, and that this is in view of the very high price, which means that many fewer dollars will accrue to this country?
§ Mr. HallThe price for Malayan rubber was fixed in consultation with other Government Departments.