§ 2.35 p.m.
§ LORD CONESFORDMy Lords, I beg to ask the Question which stands in my name on the Order Paper.
§ [The Question was as follows:
§ To ask Her Majesty's Government whether refineries in this country belonging to wholly owned subsidiaries of American oil companies will be required to provide their supplies of crude oil from their own dollar resources.]
§ THE CHANCELLOR OF THE DUCHY OF LANCASTER (THE EARL OF SELKIRK]My Lords, the American- owned subsidiary companies which operate refineries in this country rely for their supplies of crude oil on the overall resources of their parent companies. In practice, this has meant that the oil has come almost entirely from the sterling area. In present circumstances these sub- sidiaries may be expected to draw more heavily on Western hemisphere sources. As they operate in sterling and have no dollar resources of their own they are subject to the normal operation of the United Kingdom exchange control and are therefore in the same category as any other United Kingdom registered oil company.
§ LORD CONESFORDMy Lords, may I thank my noble friend for his Answer, which I shall carefully study. Do I under-stand from his Answer that in the opinion of Her Majesty's Government it is the economic facts of the situation that make my suggestion impracticable, and not any lack of powers in Her Majesty's Government?
§ THE EARL OF SELKIRKMy Lords, I think that is correct. I am not absolutely 714 sure what is the suggestion to which the noble Lord refers; but we will certainly consider it if there is some suggestion which I have not seen at the moment.
§ LORD CONESFORDThe suggestion, whether or not it was practicable, was that we should not make extremely scarce dollars available to those who did not need them.
§ THE EARL OF SELKIRKThat I accept entirely.
§ LORD JESSELMy Lords, arising out of the noble Earl's Answer, may I ask him to give us an assurance that Her Majesty's Government will be on the look-out to see that the present difficulties do not mean that the American oil companies in this country obtain any undue advantage, to the detriment of British companies in the oil business?
§ THE EARL OF SELKIRKWe will certainly bear the point in mind, but at the present juncture I think our major consideration is to see that oil is supplied to this country as quickly and in as large a quantity as possible.