HC Deb 19 November 1953 vol 520 cc1900-1
46. Mr. N. Macpherson

asked the Chancellor of the Exchequer the conditions laid down, respectively, by the United States Government and the British Government, under which 20 million dollars worth of American tobacco is to be imported against payment in sterling; and whether payment of freight and insurance is also to be in sterling.

Mr. Maudling

Reference should be made to the full text of Section 550 of the United States Mutual Security Act, 1953, of which these are the main conditions:

  1. (i) The purchases under the Section should not displace usual marketings of the United States or friendly countries.
  2. (ii) Private trade channels must be used to the maximum extent practicable.
  3. (iii) Purchases must not be resold or transhipped to other countries.
In addition, the effect of other provisions of the Mutual Security Acts is that at least 50 per cent. of the purchases must be carried in United States ships. I understand arrangements can be made for payment of freight in sterling; some dollar payments may be involved for insurance.

Mr. Macpherson

Can the hon. Gentleman say, first, that there is no possibility whatever of a reduction in the purchase of Commonwealth tobacco as a result of this purchase, and, secondly, whether the arrangement as to 50 per cent. of the freight being carried in American bottoms, which applied in the case of aid, is really applicable to this kind of transaction? Will he not press to make certain there is equal competition for the carrying in this transaction?

Mr. Maudling

It is specifically provided that the movement of these commodities should be, and must be, additional to what would otherwise have been purchased. I can give an assurance on that. On the second point, I think my hon. Friend must have regard to what is laid down by the United States Acts. When the movement of these commodities is in effect, in this case, a gift of our economy, I do not think we can press too much on the matter of the ships in which they are carried.

Mr. Jay

Can the hon. Gentleman say what will be done with the sterling which is received by the Americans?

Mr. Maudling

I think I have already informed my hon. Friend that the sterling is to be applied to meet the defence costs of the United Kingdom.

Mr. Macpherson

To obtain greater clarification of this matter, I wish to give notice that I shall raise the matter on the Adjournment.