§ 31. Mr. Shinwellasked the Minister of Transport whether, in his consideration of the restrictions about to be imposed on British shipping by the Canadian Government he will ascertain whether they will apply to United States of America and other foreign shipping; and if he will make a statement.
§ Vice-Admiral Hughes HallettSection 671 of the Canada Shipping Act already provides that ships other than British ships shall not transport goods between one Canadian port and another except in special circumstances for which provision is made in Section 673.
§ Mr. ShinwellAs these restrictions are likely to have a very detrimental effect on a certain class of British shipping, will the hon. and gallant Gentleman reply to my Question and say whether United States shipping is under similar restrictions to other foreign shipping in these waters?
§ Vice-Admiral Hughes HallettYes. My reply meant that under the provisions of the Canada Shipping Act ships other than British ships are, as a general rule, already debarred from participation in the Canadian coastal trade. There is provision for special exceptions. I understand that foreign ships carry very little coastal traffic in the area in question.
§ 36. Mr. Rankinasked the Minister of Transport if he will now make a statement on what will be the financial and other repercussions on the United Kingdom as a result of the modifications proposed by Canada to the Commonwealth Merchant Shipping Agreement.
§ Vice-Admiral Hughes HallettThe direct financial consequences of the Canadian proposals are not in themselves very serious for United Kingdom shipping companies. But, of course, any restrictions on the freedom of shipping are to be deplored because such examples are readily followed.
§ Mr. RankinThe financial effect may not be of great consequence, but can the Minister say exactly what will be the value of the port to port trade within the Great Lakes area which will be affected? Can he also tell us what will be the position of South Africa in this variation of the Agreement, as she was a member of the Commonwealth when her signature was appended to the Agreement in 1931? Now that she is outside the Commonwealth, can she prevent the Agreement being modified?
§ Vice-Admiral Hughes HallettIn answer to the first part of the hon. Gentleman's supplementary question, I cannot at present give an exact figure of the estimated cost. It is now being examined by the General Council of British Shipping. I can only repeat that, fortunately, it is not itself a very serious figure. As regards the second part of the question, Article 15 of the Common wealth Merchant Shipping Agreement requires that the Canadian modification should be circulated by the United Kingdom to the other signatories, and, as the hon. Gentleman rightly said, South Africa was one of them, as also was the Irish Free State. The legal position of those two countries is now being examined.
§ 37. Mr. P. Williamsasked the Minister of Transport if consultations with the Canadian Government in advance of a modification of the Commonwealth Merchant Shipping Agreement have been completed; and if he will make a statement.
§ Vice-Admiral Hughes HallettWe are examining the Canadian Government's recent proposal and hope to send them our comments quite soon.
§ Mr. WilliamsIs it not the case that these proposals have been discussed for some considerable time, and that there has been a perfectly reasonable time in which the Government could have made recommendations? Has this been done? If not, why not?
§ Vice-Admiral Hughes HallettNo, Sir. We had no previous consultation, and naturally we would have preferred to have discussed the proposals with the Canadian Government before that public announcement was made.
§ Mr. ShinwellAre these comments which are to be addressed to the Canadian Government based on consultations with the General Council of British Shipping?
§ Vice-Admiral Hughes HallettYes, Sir.