HC Deb 18 March 1952 vol 497 cc2101-3
48. Mr. Horobin

asked the Chancellor of the Exchequer, in view of the fact that India has recently bought over one million bales of North American cotton at prices below those for American-type cotton sold to Lancashire spinners by the Raw Cotton Commission, how far dollars were released by this country against Indian sterling balances in order to finance the purchase.

Mr. R. A. Butler

I do not know how many dollars India paid in respect of this transaction. The Government of India are, of course, sole judges of the extent to which any particular dollar transaction accords with the general principles accepted by all members of the sterling area.

Mr. Horobin

Would the right hon. Gentleman not agree that India appears to be obtaining considerably more American cotton than Lancashire, and that it is rather desirable that he should endeavour to increase American supplies of cotton to Lancashire?

Mr. Butler

That also raises a rather different issue. It is important that Lancashire should have a proper supply, but I cannot interfere with the transactions of the Government of India.

49. Mr. Horobin

asked the Chancellor of the Exchequer what steps he has taken to urge on the United States Government the necessity for equally favourable terms to be made available to this country for purchasing United States cotton by means of dollar loans as are enjoyed by Japan.

Mr. R. A. Butler

If application by the United Kingdom were to be made I am not aware that similar facilities would not be available to this country.

Mr. Horobin

In view of the fact that the Indian Government is being helped to obtain cotton by this Government and the Japanese by the American Government, is it not very important to help Lancashire in the way suggested at the highest level in order to try to obtain assistance in securing the necessary raw cotton for Lancashire?

Mr. Butler

I presume India is being financed by a loan through the Export-Import Bank, and the question of whether Lancashire or this country needs a loan is another matter. I think out best step is to continue to put our finances on a sound footing.