HL Deb 18 November 1952 vol 179 cc314-6
LORD BARNBY

My Lords, I beg to ask the second Question which stands in my name on the Order Paper.

[The Question was as follows:

To ask Her Majesty's Government in regard to the recently reported barter arrangement with Brazil of aircraft for cotton:—

  1. (a) when it is to be understood, delivery of the aircraft will be made, and
  2. (b) if it is to be correctly understood that in the interval before such delivery no payment will be made for any cotton delivered.]

THE CHANCELLOR OF THE DUCHY OF LANCASTER (VISCOUNT SWINTON)

My Lords, this transaction, which so far as I know has not yet been concluded, is not an arrangement between Governments, and I do not know its terms. I would add that it is the view of Her Majesty's Government that the serious problems which have arisen in our trade with Brazil need more fundamental remedies than compensation deals of this kind. It is also their view that, while such deals may not be without advantage in particular cases if trade can be done which would otherwise not take place, general recourse to such arrangements would not be in the best interests of our export trade.

LORD BARNBY

My Lords, while thanking the noble Viscount for his reply, may I ask whether, in view of the widespread concern which has developed among traders with regard to the outstanding amounts, which are believed to be somewhere in the nature of £35 million, he can give any indication of what is approximately the outstanding liability of the Export Credits Guarantee Department for amounts of exports which have not been paid for?

VISCOUNT SWINTON

My Lords, I presume that the noble Lord is referring to exports which have been guaranteed or insured with the Export Credits Department and where the Brazilian importer has not paid. I am afraid I cannot give that information. I have had some figures given me at very short notice, but there seems to be a good deal of overlapping in them. If the noble Lord will put down a written Question, stating precisely what is the information he would like to have, I will do my best to give him an answer.

LORD LUCAS OF CHILWORTH

My Lords, is the noble Viscount aware that if we read into his reply the fact that the rather peculiar transaction between Brazil and the Raw Cotton Commission and the Gloster Aircraft Company does not receive the approbation of Her Majesty's Government, it will give great satisfaction —not least to the many Brazilian creditors who must look somewhat aghast at this transaction?

VISCOUNT SWINTON

The noble Lord has made a statement giving his views on the matter. I also have made a considered statement and given the views of Her Majesty's Government on the matter.

LORD BARNBY

My Lords, while thanking the noble Viscount for his reply, may I say that I will put down a Question? Would the noble Viscount consider the propriety of putting forward a recommendation regarding the making of a further general statement by the Government on the whole question of current trading with Brazil?

VISCOUNT SWINTON

My Lords, I will consider that, but I do not think that a statement made by Her Majesty's Government would be very useful. As the noble Lord is probably aware, continual discussions and negotiations are going on regarding the settlement of outstanding balances. My noble friend the Under-Secretary of State for Foreign Affairs is either now, or will shortly be, in Rio on his good will mission to South America, and I think a statement from him would be a good deal more useful than some statement made here.