HC Deb 17 June 1948 vol 452 cc635-6
24. Mr. A. R. W. Low

asked the President of the Board of Trade if he will make a statement about the effect upon British trade interests of the present tension between the Government of India and His Highness the Nizam of Hyderabad; in particular to what extent deliveries of machinery manufactured in the United Kingdom on Hyderabad State orders to the value of large sums of money are being held in India; and whether any new orders placed by Hyderabad State in the United Kingdom have been cancelled or threatened with cancellation.

Mr. H. Wilson

So far as I am aware, relations between India and Hyderabad have not caused any appreciable loss to United Kingdom exporters, nor am I aware of any cancellations or threats of cancellation. Any complaints made about delays in forwarding goods from Indian ports to Hyderabad are a matter for India and Hyderabad, the more so since any financial loss resulting from them has not normally fallen on the United Kingdom exporters.

Mr. Harold MacMillan

Arising out of that reply, does the right hon. Gentleman realise the deep concern felt in this country over the situation which has developed especially in view of the undertaking given to His Highness the Nizam during the passage of the India Bill?

Mr. Wilson

That seems to be a very different Question from the one on the Order Paper relating to the commercial consideration, and I have no comment to make outside the commercial aspect.

Mr. Low

The right hon. Gentleman said there had been no appreciable loss. Will he tell the House what loss there has been, and will he also say whether, in his opinion, if there has been loss already, there is not likely to be further loss?

Mr. Wilson

I am not in the habit of collecting either daily or weekly returns of losses to traders. There have been no appreciable losses reported to us by the traders concerned, but if the hon. Gentleman has any cases in mind, I hope he will let us have them straight away.

Mr. Gallacher

There would be nothing lost if we lost the Nizam.

Colonel Crosthwaite-Eyre

Is the right hon. Gentleman aware that there are considerable losses, particularly since the Hyderabad Bank cannot get rupees from the Reserve Bank of India in order to finance its imports, and cannot obtain exchange facilities to cash the various currencies it receives for its exports, and will he look into it?

Mr. Wilson

As and when British exporters are prejudicially affected, I have no doubt that they will come to the Board of Trade and tell us about it.

Brigadier Rayner

Does not the whole unfortunate business justify the anxieties expressed by many of us on this side of the House when we debated the India Independence Act last year?

Mr. Wilson

No, Sir.