§ Order of the Day for the Second Reading read.
§ THE CIVIL LORD OF THE ADMIRALTY (THE DUKE OF DEVONSHIRE)My Lords, in asking the House to read this Bill a second time I do not think it necessary to weary your Lordships with any prolonged statement on the details and technicalities involved in this matter. The question of trade at this moment is a peculiarly difficult one, and as far as possible we have to aim at what are to some extent two rather discordant policies. In the first place we have to aim at restraint of enemy trade, and in the second place, as far as we possibly can, at the promotion of our own; and I think your Lordships will agree that the first consideration is the one which ought to be paramount in our minds.
Under the present system there is published a list of articles which are prohibited from going into neutral countries. That list is already an extensive one. It was partly compiled in pursuance of Acts passed prior to the outbreak of war, and as time has gone on it has been found necessary that the list should be increased. The present system is that it is possible to allow an article prohibited under the list to be sent to a neutral country under a licence issued by the War Trade Department, which is under the presidency of my noble friend Lord Emmott. That has, I believe, involved a great amount of work; it is a task of considerable delicacy and difficulty, but it has been carried out with a marked degree of success. That is the general system which is in operation. It is obvious that the difficulty arises when the article in question reaches the neutral country to secure that it shall not be allowed to pass through to an enemy destination. The task which has devolved upon my noble friend and his Department has been to judge, from the character and standing of the consignee, whether a licence should be given. This system must necessarily to some extent create delay and a certain amount of congestion at the ports. Consequently a considerable amount of inconvenience has been caused not only to British traders but to traders in neutral countries. This was especially so in the case of Holland, and led by degrees to the formation there of the Netherlands Over-sea Trust, which undertook the responsi- 141 bility of receiving goods and of taking every step they could to see that prohibited goods which had passed through their country under a licence should not find their destination in enemy territory. An additional safeguard is that the whole of their transactions are to be subject to the approval and the investigation of the British Consul.
This system has, I believe, worked well as far as licensed exports are concerned, and it is now proposed that the system should be extended so as to include no, prohibited goods. The Netherlands Oversea Trust have agreed to accept consignments of all goods, and have given their undertaking that such goods shall be limited to the neutral country and shall not find their way through to the enemy country. We have, I think, experience and information enough to justify us in asking the House to sanction this. It is not really a departure from any previously recognised principle, but an extension of principles which have already been adopted in connection with this subject. Taken in conjunction with other legislation this Bill will enable us to prohibit the export of any goods; it will enable us to confine the prohibition to any particular country; and, further than that—and this is the particular power which will be obtained under this Bill—it will enable us to prohibit goods going to any country except to a particular consignee.
If, as I hope will be the case, your Lordships allow this Bill to be read a second time and to be passed through its remaining stages at this afternoon's sitting so that it can receive the Royal Assent forthwith, it is intended by Order in Council to make the Netherlands Oversea Trust the consignee in respect of all goods passing from this country to Holland. Naturally no reference is made to any one country in particular, but as a result of the machinery set up by this Bill it will be possible by Order in Council, if the Bill passes, to make Holland the consignee. It will be further possible, I hope, later on, when the principle gets more firmly established, to have in other neutral countries similar bodies to that which has been set up in Holland, which should act as sole consignees in respect of that particular territory. The machinery proposed to be set up will be carried out through the Customs, which possess the necessary knowledge and information to enable them to do so. I admit that the system may not be as watertight 142 in every respect as one might desire. At any rate when this Bill is passed we shall be able to take another step in advance in helping our own exporters to carry on their business, at the same time having a reasonable amount of security that goods which go from this country into neutral countries will not be allowed to pass through to the service of the enemy.
§ Moved, That the Bill be now read 2a.—(The Duke of Devonshire.)
§ On Question, Bill read 2a.
§ Committee negatived: Then (Standing Order No. XXXIX having been suspended) Bill read 3a, and passed.