§ 2.39 p.m.
LORD TEYNHAMMy Lords, I beg to ask His Majesty's Government the question standing in my name on the Order Paper.
§ [The question was as follows:
§ To ask His Majesty's Government, whether they can confirm a statement in the Press that negotiations are being carried on for the sale of the Cruiser H.M.S. "Ajax" to Chile.]
§ THE FIRST LORD OF THE ADMIRALTY (VISCOUNT HALL)My Lords, early this year the Chilean Government asked what price His Majesty's Government were prepared to accept for the sale of H.M.S. "Ajax" A price was quoted which we recently confirmed. There has been no firm offer to purchase by the Chilean Government, and no further action has been taken in the matter.
LORD TEYNHAMMy Lords, arising out of the reply of the noble Viscount, would His Majesty's Government bear in mind that it might be better policy to restrict the sale of our cruisers or other ships to those countries which are members of the Commonwealth, rather than to dispose of them to countries which have recently done certain things in the South Atlantic by way of disputing our possessions?
§ VISCOUNT HALLNo request from any Commonwealth country for a cruiser has been refused. As to the second part of the question, of course, in the event of negotiations either with Chile or any other country or with the Commonwealth, we will take every matter into consideration.
§ THE MARQUESS OF SALISBURYDo I understand that to mean that His Majesty's Government will take into account political considerations, as well as mere financial considerations?
§ VISCOUNT HALLCertainly.
§ VISCOUNT SIMONBut is the price that was quoted by His Majesty's Government an offer which, if accepted, will make a bargain?
§ VISCOUNT HALLNot necessarily so. As the noble and learned Viscount may know, H.M.S. "Ajax" was one of the light cruisers which were offered for sale to one of the Dominions some two or three years ago. I have no doubt that, arising out of that, the Chilean Government, like a number of other Governments, would make inquiries from time to time as to the price at which a ship could be sold. Other matters will, of course, have to be taken into consideration in negotiations for the disposal of any ship.
§ THE MARQUESS OF SALISBURYYour Lordships will forgive me if I press this matter, but I submit that it is rather an important point. Do I understand that no decision in principle has yet been taken by the Government?
§ VICOUNT HALLThat is so. It is the custom for the Admiralty to be asked the potential price of any ship. The decision to dispose of the ship is a matter for His Majesty's Government.
§ EARL HOWEWill the noble Viscount keep in mind the fact that this ship bears an honoured name? If it is really necessary to dispose of ships of the Royal Navy, could not some, other vessel be selected, rather than one with such a glorious war record?
§ VISCOUNT HALLAs I informed the noble Earl on a previous occasion, that is a matter which is being taken into consideration. It must be borne in mind that H.M.S. "Ajax" comes in Category III Reserve.
§ EARL BEATTYIf it is not felt that any further use can be made of this cruiser by the British Navy, does not the noble Viscount consider that it would be advisable to sell it for scrap steel, rather than to sell it to Chile?
§ VISCOUNT HALLI have no doubt that the noble Earl will appreciate that the value of a vessel for scrap steel is very small in comparison with what is offered for it by other countries by whom it is deemed suitable for further use.