HC Deb 25 May 1960 vol 624 cc426-8
27. Sir L. Ropner

asked the Minister of Transport whether, in the interests of British shipping and of promoting freedom of the shipping of all flags to take part in international trade, he will make representations to the Government of the United States of America to ensure that there is no flag discrimination in the shipment from the United States of America to India of wheat and rice under the agreement recently made between the Governments of those countries.

26. Lieut.-Commander Maydon

asked the Minister of Transport if he is aware that the arrangements for the shipment of the 17 million tons of wheat and rice, which the United States Government has agreed to supply to India, would largely preclude British ships from offering for these cargoes; and what action he proposes to take in the interests of British shipping.

Mr. Marples

I understand that these grains will be paid for in Indian currency and that most of this will be used for Indian economic development. It is a requirement of United States law that 50 per cent. of the shipments made under such arrangements should be in United States flag vessels, but I hope that the remaining 50 per cent. will be open to free and fair international competition. The Governments of the United States and India are well aware of our views concerning the imposition of shipping conditions in transactions of this kind.

Sir L. Ropner

These two Questions relate to the shipment of no less than 17 million tons of grain over very long distances. Is my right hon. Friend aware of the serious damage being done to the fleets of the traditional maritime nations by legislation on the part of the United States which discriminates in favour of the American flag?

Mr. Marples

I am, indeed. But I cannot alter the United States law any more than any citizen of the United States can alter the law of this country. Provided the Administration keeps to the law which Congress has passed, there is very little I can do, but I hope that the Administration will not go further. If it does, I shall make a protest.

Mr. Mellish

Will the right hon. Gentleman take a personal interest in this matter and, if necessary, take immediate action? Most hon. Members are very much concerned that the good relations between America and ourselves should be maintained, and it is on issues of this kind that so much harm can be done by certain vested interests in America.

Mr. Marples

I made precisely that point when I was in Washington. But I will go further. I will send the report of this Question and Answer to the Federal Maritime Board, so that it will know the feelings of this House.

Sir L. Ropner

Is my hon. Friend aware that the aid legislation is being more and more widely interpreted by the Government of the United States, and that it seems quite likely that all trade will be designated as aid?

Mr. Marples

If my hon. and gallant Friend will give me details in writing of the way in which the Act is being misinterpreted. I shall take up the matter with the United States Government.

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