HC Deb 10 June 1952 vol 502 cc6-7
11. Lieut.-Colonel Schofield

asked the President of the Board of Trade whether he is aware of the alarm caused to many cotton spinners and manufacturers by his decision to extend the markets to which Japanese cloth brought here for processing may be re-exported; and whether, in view of the fact that this cloth was imported on condition that it would only be re-exported to a limited number of specified markets, he will agree to restrict severely any new extensions in order to give absolute priority to all-British cotton goods, the export of which can give greater benefit to Lancashire.

Mr. P. Thorneycroft

I would remind my hon. and gallant Friend that the issue of new licences to import Japanese cotton and rayon grey cloth is at present suspended. There are, however, importers already holding licences granted on their undertaking to re-export these goods to certain markets after processing in this country. My decision to consider any such individual cases for re-exporting the goods to a limited number of additional markets was intended to help move the present heavy stocks and so clear the way for new orders for Lancashire cloth. Each application will be considered with this object in view. I am not aware that alarm has been caused by this decision, which has been taken in the best interests of the Lancashire cotton industry as a whole.

Lieut.-Colonel Schofield

Whilst thanking my right hon. Friend for his answer, may I ask if he does not agree that these re-exports of Japanese cloth must displace cloth that could be manufactured in this country and that, although the quantities which may be re-exported may not be great, the psychological effect of re-exporting Japanese cloth at the present time is very great indeed, particularly in Lancashire where spindles and looms are stopped for want of orders? Will my right hon. Friend bear that in mind?

Mr. Thorneycroft

I will certainly bear in mind the points my hon. and gallant Friend makes. There is, in fact, only one such case. The Manchester Chamber of Commerce were informed of what was happening, and I certainly had no complaints from them.