HC Deb 25 January 1949 vol 460 cc748-50
61. Mr. Nally

asked the Chancellor of the Exchequer the reasons for his decision to afford Great Universal Stores, Ltd., the necessary dollar facilities to extend its activities in the United States.

47. Mr. Drayson

asked the Chancellor of the Exchequer what opportunities were given to companies in Great Britain to put forward proposals for direct retail sales in the U.S.A. before 750,000 dollars were allotted for this purpose to the Great Universal Stores Company.

Sir S. Cripps

All companies in Great Britain have an equal right and opportunity to put forward proposals for capital investment outside the sterling area for any purpose for which it is required. There is no question of giving special opportunities to any one particular firm. The Great Universal Stores project is one among a large number of applications for every kind of development abroad, which have come before the Exchange Control and have been dealt with by that Control on their merits. The sanction required was solely for the expenditure of dollars, and Exchange Control approval means only that the project is one which, on general balance of payments grounds, is considered to be in the national interest. In the case of Great Universal Stores their project appeared to provide a new and promising outlet for sales of United Kingdom goods in the United States. There is, of course, no question of public funds being involved, nor of Government sponsorship of any kind.

Mr. Nally

Does the Chancellor consider it to be in the national interest that a firm, whose labour record is notoriously bad over a period of, at least, 12 years, should be given this opportunity, when that labour record has been adversely commented on in the courts on, at least, three occasions? Can I have a quite definite assurance from the Chancellor that no particular preference will be given to applications of this kind for dollar earnings because it is felt that the personalities associated with the applications are likely to be able to blunt the sharp edge of the boycott campaign that has been running until quite recently in New York?

Sir S. Cripps

None of the matters which the hon. Gentleman has mentioned has come into consideration; nor do they come into consideration.

Mr. Stanley

Is there some special machinery which deals with applications for dollar credits of this kind, or do they go straight to the Exchange Control in the ordinary way?

Sir S. Cripps

They go through the Exchange Control in the ordinary way.

Mr. Osborne

Before granting any further special concessions, will the right hon. and learned Gentleman bear in mind the unwisdom of using special shops in America to sell British goods and going behind the back of the great organisations already selling British goods, and in the end doing more harm than good?

Sir S. Cripps

There is no question of setting up special shops here at all.

Mr. Osborne

I thought that there was.