HC Deb 09 June 1953 vol 516 cc29-31
50. Mr. Donnelly

asked the Prime Minister whether, when he meets President Eisenhower, he will express the thanks of the British Nation for all the dollar aid received and inform him that it is not our intention to accept any more.

The Prime Minister

I have frequently expressed, both publicly and privately, the gratitude of the British nation for the generous help we and the late Government have received, and I shall do so again. I shall also thank President Eisenhower for the way in which he has recognised, in the proposals which he has recently put to the United States Congress, the heavy defence burden still borne by this country. At the same time I shall assure him of the resolve of Her Majesty's Government and of the British people, to manage their own affairs in such a way that they can become independent of financial aid from abroad, while at the same time carrying their share of the common defence burden.

Mr. Donnelly

Will the Prime Minister bear in mind that there is a substantial body of opinion in this country which would like to see that aid terminated now and is quite ready to face any hardship or difficulties which may result—and that opinion is particularly held on this side of the House—in order that this country may be able to play any part herself with complete independence in the difficult negotiations which may lie ahead?

The Prime Minister

The opinion which the hon. Gentleman expresses and with which I do not in principle quarrel was not nearly so strongly held by the party to which he belongs in their six years of Government.

Mr. Grimond

Would the Prime Minister again represent to the President that if we are to repay our loans to the United States then they must accept goods from this country as the only way in which repayment can eventually be made?

The Prime Minister

I am very much in favour of "trade not aid" and of our earning our living by all our toil and effort, and I think that feeling is very strongly held in this country. I earnestly hope that we shall be able to give effective expression to it before very long.

Mr. S. Silverman

Would the Prime Minister bear in mind, when he compares the position now with the position as it obtained in the six years of the Labour Government, that by the year 1950 this country was in a position to dispense with all further dollar aid and would have remained so but for the unattainable target of re-armament, as everybody now knows it to be. which we undertook in that year?

The Prime Minister

We did not throw out the unattainable target referred to by the hon. Gentleman. In fact we had to reduce it to somewhat smaller and more distant lines, but I do particularly remember the £1,000 million loan for which we are now paying the interest and repaying the capital and the Marshall Aid for years for civil matters, apart from the military. We have not any of those conveniences, great helps and aids, but we are doing our best to attain financial independence.

Mr. Osborne

Would the Prime Minister not agree that if we are going to refuse to have any more American aid we must either increase the productivity of this nation or our standard of life must go down? Will he make that perfectly clear to this House and the country?

The Prime Minister

I think it is obvious that in an island with 50 million people living in it and only growing food for something between one-half and two-thirds, the most strenuous efforts have to be made, of mind and body and organisation and sacrifice, in order to secure us our independent means of life.

Mr. Shinwell

In view of the implied criticism of the previous Government's rearmament programme, is the right hon. Gentleman aware that when that programme was presented to this House there was precious little criticism or opposition from any quarter?

The Prime Minister

I always supported the right hon. Gentleman on any occasion on which he did anything which I could concede was patriotic.

Mr. Shinwell

In that case, what is the right hon. Gentleman complaining about?

The Prime Minister

I was meeting complaints not in any spirit of controversy but in order to show the modern historical perspective in which these events must be judged.