§ 29. Mr. T. Reidasked the Secretary of State for the Colonies what steps are taken in respect of goods imported by Britain from the Colonies to ensure that colonial export duties levied before or after prices have been agreed on with the British Government for such imports, are not paid by British consumers.
Mr. Creech JonesWhere prices are agreed for bulk purchase transactions on a Government to Government basis, it is normally understood, if it is not provided for specifically in a contract, that no increase will be made in the existing rate of export duty except for seller's account, or, if the duty is paid by the purchasing Ministry, with that Ministry's prior agreement.
Mr. Creech JonesIn regard to tea, the price is determined by the world market, and in any case the Ceylon Government had the right to impose duties, because contracts had expired.
§ Mr. W. FletcherWith regard to Copra, will the right hon. Gentleman reply to the last part of the supplementary question? Is it not a fact that a 50 per cent. export duty on copra, imposed after the five-year contract had been signed, is costing this country £15 a ton?
Mr. Creech JonesIt is quite true that the Ministry of Food had a contract with the Ceylon Government on a f.o.b. basis which did not specifically cover this duty point.