HC Deb 31 March 1947 vol 435 cc1635-6
8. Mr. Bramall

asked the Minister of Food whether any arrangements are being made to open trade relations with Indonesia, in view of the supplies of sugar, fats and rice which are available in that country.

Mr. Strachey

As my hon. Friend is aware, the Dutch and Indonesian authorities signed the Linggadjati Agreement at Batavia on 25th March. This very welcome step should provide the necessary basis for the early resumption of full trade relations with Indonesia and, in particular, should make it possible to resume the free movement of any supplies of foodstuffs already available in Indonesia for export. Even if the quantities readily available prove to be small, an early resumption of trade should provide an incentive which will help towards the rehabilitation of production of foodstuffs. We shall keep in close touch with both the Indonesian and the Dutch authorities in the matter and if necessary make strong representations to them if there appears to be any avoidable delays.

Mr. Bramall

Would my right hon. Friend say whether any steps have been taken to start negotiations for the movement of foodstuffs?

Mr. Strachey

There have actually been attempts to move foodstuffs in both British and American vessels. As my hon. Friend is probably aware, the Dutch authorities have objected, but that was previous to the signing of the Agreement, and we hope that the situation will now improve.

Mr. W. Fletcher

Can the Minister say what proportion of the foodstuffs which may be found in the country will be allocated to this country, in view of the special services rendered in Indonesia by the British Government?

Mr. Strachey

In the case of sugar, for example, under the recent I.E.F.C. allocation, we should receive a considerable share of any sugar coming out of Indonesia this year. It would similarly benefit us in the case of fats and tea. There is no doubt whatever of the great importance to us of the early resumption of this trade.

Mr. Thomas Reid

Will my right hon. Friend use the occasion to import tea from Java and Sumatra, particularly in view of the fact that Ceylon is levying an export duty of 7½d. per lb. on its tea?

Mr. Strachey

The question of tea exports from Indonesia is probably the key to the whole world tea situation.

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