HL Deb 02 July 1940 vol 116 cc749-50

5.23 p.m.

THE LORD CHANCELLOR (VISCOUNT SIMON)

My Lords, I beg to move that the Special Order, as reported from the Special Orders Committee on Wednesday, be approved. That Order is entitled the Clearing House (Rumania) Amendment Order, 1940. I do not imagine your Lordships will desire a lengthy technical explanation, but it would seem right that I should state in two or three sentences what is the substantial effect of this proposal. Hitherto trade between this country and Rumania has been governed by an Agreement called the Anglo-Rumanian Trade and Payments Agreement made on July 12 last year. That, as your Lordships will observe, was a pre-war arrangement. Though it was an arrangement that has produced good results in some respects, there is no doubt it is not a form of arrangement best suited to present conditions. The main purpose of the new Order is to authorise the putting into effect of an Agreement which has now been reached with the Rumanian authorities as is scheduled to the Order, and which, broadly, has the effect of abrogating, very largely, the previous Agreement made in July of last year and substituting a very much better arrangement.

The Agreement of last year was one under which there was created an Anglo-Rumanian clearing. Your Lordships know the nature of that arrangement. There are very considerable disadvantages in carrying on trade between Rumania and this country by means of clearing, and one of the results of this Order will be to substitute a better method, while the Anglo-Rumanian clearing arrangement will be wound up. In Article II of the scheduled Agreement, the Rumanian Government undertakes to provide the sterling necessary to enable all debts covered by the previous Agreement to be punctually paid. I do not feel any doubt—and this is the view of the Treasury—that the new arrangement is much better calculated to promote Anglo-Rumanian trade than was the old one. Of course, in view of recent events in that part of the world, it is hardly possible to speak with complete optimism and dogmatism as to how much will be accomplished by the new Agreement, but the best course is to make the arrangement best calculated to develop Anglo-Rumanian trade. We hope that will be the result of this Order.

Much, of course, must depend on the shipping situation in the Eastern Mediterranean. That is very thoroughly in hand, and I am glad to be able to inform your Lordships' House that Rumanian oil, which is of such enormous importance, is one of those matters which will continue to be dealt with in the most satisfactory way possible. I ask your Lordships to approve of this new arrangement because I am satisfied it is a great improvement on the arrangement made in time of peace, and I am sure your Lordships' House will much hope that the situation will so develop that trade between this country and Rumania will be strengthened and promoted. I beg to move that the Special Order be approved.

Moved, That the Special Order, as reported from the Special Orders Committee on Wednesday last, be approved.—(The Lord Chancellor.)

On Question, Motion agreed to.

The LORD CHANCELLOR acquainted the House, That the Clerk of the Parliaments had laid upon the Table the Certificate from the Examiners that the Standing Orders applicable to the following Bills have been complied with:

The same was ordered to lie on the Table.