HC Deb 16 May 1950 vol 475 cc1008-9
67. Colonel Crosthwaite-Eyre

asked the Chancellor of the Exchequer for what reason he has not exercised the powers of His Majesty's Government under Section 30 of the Exchange Control Act, 1947, to ensure that the British Transport Commission, as effectual owners of the branch of Thomas Cook in New York, comply with the statutory regulations for the sale of currency.

Sir S. Cripps

When answering the Question on this matter put by the hon. and gallant Gentleman who is now the Member for Bristol, North-West (Lieut.-Commander Braithwaite) on 15th December last, I was not aware that the sale of sterling notes in New York was not by the American agency company of Thomas Cook, which is a company incorporated in the United States, but by another agency of Thomas Cook which is a branch of a company registered in this country, Thomas Cook and Son (Bankers) Ltd.

That being so, Section 30 of the Exchange Control Act has no application to the agency selling the sterling notes. The position of that agency is determined by Section 39 of the Exchange Control Act, 1947, and by S.R. & O., 1947, Nos. 2039 and 2054. Branches of United Kingdom companies carrying on business in the United States are regarded as residents of the United States for exchange control purposes and, therefore, as I have already said, I have no powers under the Exchange Control Act over the sale of currency in New York by this branch of Thomas Cook and Son (Bankers) Ltd. Nor are they committing any offence under the Act in selling sterling notes at a discount.

Colonel Crosthwaite-Eyre

The Chancellor said that this was a separate agency. Is it not a fact that this agency, too, is in the effectual control of the British Transport Commission and is, therefore, subject to Section 30 (1, a) of the Exchange Control Act? If that is so, why has action not been taken?

Sir S. Cripps

Because Section 30 of the Exchange Control Act applies only to companies not registered in this country.

Colonel Crosthwaite-Eyre

This is Section 30 (1, a).

Sir S. Cripps

If the hon. Member will put that Question on the Order Paper I will have a look at it.

Colonel Crosthwaite-Eyre

The Chancellor of the Exchequer says "Section 30." In a previous answer this afternoon he quoted Section 30 (1, a), Surely he should know the provisions of that Section.

Sir S. Cripps

I do not propose to give an answer on the spot about any provision of the Exchange Control Act.

Sir H. Williams

As the right hon. and learned Gentleman is a trustee of the British people, who are shareholders of the British Transport Commission, does he not think that he should keep his children in order?