HC Deb 13 May 1947 vol 437 cc1284-5
47. Mr. W. Fletcher

asked the Chancellor of the Exchequer what proportion of tobacco imported into this country was re-exported after processing to other countries in the hard-currency area and in the soft-currency area, respectively, from 1st January, 1946, to 1st April, 1947

The Chancellor of the Exchequer (Mr. Dalton)

0.2 per cent. and 6 per cent. respectively.

Mr. Fletcher

That is a considerable figure to soft currency areas. Will the Chancellor of the Exchequer say what means he proposes to take so that we do not expend our dollar loan in order to sell tobacco and cigarettes to soft currency countries where they, in turn, sell them to the public at a much cheaper price than that at which the consumer is able to buy them here?

Mr. Dalton

For the purposes of this classification the whole of the British Empire, including Canada, is classified as a soft currency area, and, in fact, 77.5 per cent. of the soft currency exports here defined go to British Empire markets. I think the hon. Gentleman is slightly misunderstanding the situation.

Mr. Fletcher

That is not a satisfactory answer. Will the Chancellor explain whether in his view it is wise to expend a high proportion of our dollar loan on buying tobacco and cigarettes which are then sent to soft currency areas, even though they are in the British Empire?

Mr. Dalton

Over 77 per cent. go to the British Empire and I think that is a pretty good proportion, and we ought to be pleased with it.

Mr. Fletcher

That is not the answer to my question.

Mr. Dalton

It is my answer.

Mr. Oliver Stanley

Can the right hon. Gentleman say what proportion processing adds to the price of the tobacco bought in America?

Mr. Dalton

With notice, with pleasure.

Sir Frank Sanderson

Would the right hon. Gentleman consider the importation of tobacco from Bulgaria where I understand there is a considerable quantity available for export?

Sir Waldron Smithers

The Russians have it all.