HC Deb 19 November 1953 vol 520 cc1903-4
59. Mr. Peart

asked the Chancellor of the Exchequer if he will give the details of the Government agreement to purchase surplus United States stocks of food.

Mr. Maudling

So far, arrangements have been made for the purchase of 20 million dollars worth of tobacco, the sterling proceeds of which will be applied in relief of the United Kingdom defence budget. Discussions with the United States Administration in respect of other commodities are still proceeding. I would also refer the hon. Member to my reply today to the Question by my hon. Friend the Member for Dumfries (Mr. N. Mac-pherson) setting out the general conditions governing these purchases.

Mr. Peart

Will the Minister bear in mind the interests of the Commonwealth, which might well be affected, as, also, can be the very important interests of home producers of food?

Mr. Maudling

I think the hon. Gentleman will find the legitimate interests of both home and Commonwealth food producers are safeguarded by the conditions I read out in reply to an earlier Question.

Mr. Roy Jenkins

Will the hon. Gentleman explain how such an arrangement helps the dollar sterling balance position?

Mr. Maudling

I do not know that it specifically assists the dollar sterling balance, but it means that we get 20 million dollars worth of tobacco for nothing.