HC Deb 01 December 1953 vol 521 cc941-2
29 and 30. Mr. Gaitskell

asked the President of the Board of Trade (1) how he proposes to ensure that the recent purchase of tobacco under the United States Mutual Security Act, 1953, does not displace usual marketings of the United States of America or friendly countries:

(2) how he proposes to ensure that the tobacco recently purchased under the United States Mutual Security Act, 1953, is not resold or transhipped to other countries and does not involve the resale or transhipment of additional quantities of other tobacco.

Mr. H. Strauss

Our reserves of tobacco are so low, and manufacturers are so anxious to improve them, that my right hon. Friend regards the possibility of other stocks or purchases being displaced by the tobacco acquired under the Mutual Security Act as remote. My right hon. Friend has nevertheless required importers to give written undertakings that(a) they will treat this tobacco as an addition to stocks which will be kept at the higher level, (b) they will maintain their United States tobacco purchasing programme this year at the level previously contemplated, and (c) the tobacco will not be resold or transhipped to other countries in an unmanufactured state. Tobacco cannot be exported except under licence.

Mr. Gaitskell

Am I to understand from that reply that this tobacco will be put to stock and left in stock permanently so that there will never be any increase in consumption?

Mr. Strauss

No, that would not be the right conclusion.

Mr. Gaitskell

In that case, how will the hon. Gentleman satisfy the American Government if he does not increase consumption?

Mr. Strauss

It is not a question of how we are going to satisfy the American Government because, of course, we have already done so.