§ 3.13 p.m.
§ LORD BARNBYMy 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 if, with regard to the proposed limiting of imports of silk from China, also having regard to the traditional respect of the United Kingdom textile industries towards fulfilment of contracts, they will now review the proposed time limit so as to enable British firms to fulfil all current contracts for imports from China.]
§ LORD MILLSMy Lords, as I informed your Lordships' House yesterday, the Board of Trade will consider sympathetically applications for licences required to cover firm orders for Chinese silk goods placed before the control was announced on November 4. No licence is required for goods shipped before the date of the announcement.
§ LORD BARNBYMy Lords, I would ask the noble Lord whether there is not a distinction between the Question he replied to yesterday and that which I have asked to-day, in that the Question he replied to yesterday was one of general principle? The Question which I have asked to-day is an entirely different one which deals with the general principle 974 apart from this particular number of conventional trade practices as carried out by the United Kingdom? Perhaps he will permit me to say that the danger of this step is that it will react adversely on our general trade when we have, as in this case, for example, compulsory action towards British citizenship for non-fulfilment of contracts.
§ LORD MILLSMy Lords, I took the opportunity in replying to the Question yesterday to say that in respect of firm orders placed before the date of the announcement the Board of Trade would consider sympathetically applications for licences required to cover those orders. I understand the noble Lord's Question to-day to be to the same effect, except that he brings in the general question in regard to the Government's attitude to fulfilment of contracts. I think the Government's attitude in regard to fulfilment of contracts is quite clearly set out in the reply I have given to the noble Lord.
§ LORD BARNBYMy Lords, this is; a matter of such great importance to those large exporters to China from this country—in the case of semi-manufactured woollen products the amount runs, I think, to something like £7 million a year—that perhaps I may ask the noble Lord whether his attention has been drawn to the matter in the way that it is set out and reinforced in a letter to The Times to-day from the head of one of the largest exporting firms in this; country. I should also like to ask the noble Lord whether he is aware that already the result of this action has been that the Chinese channels who are making sales to this country have broken off relations entirely with their former purchasers who are being forced to disregard their contracts.
VISCOUNT ELIBANKMy Lords, before the noble Lord answers, may I ask him whether he has read the letter from Mr. Robert Asquith in The Times to-day emphasising what the noble Lord, Lord Barnby, has just said?
§ LORD MILLSMy Lords, I have not read the letter in The Times to-day, but if the noble Lord cares to put down a Question in relation to that letter, I will do my best to answer it: I am replying to the Question on the Order Paper. I have already stated that all 975 firm orders which were placed will be considered sympathetically by the Board of Trade. The Government have, rightly, I think, imposed a date from which, in regard to any future order, importers have to follow a quota system. I do not think there is anything wrong in that; nor does it disregard the sanctity of contracts which runs through the noble Lord's Question.
§ LORD BARNBYMy Lords, while thanking the noble Lord for the patience of his reply, may I ask him, in view of the seriousness of this matter and its effect on our exports, whether he will represent to, the Board of Trade the urgency of the matter, so that there will not be a delay which will imperil the existing current orders?
§ LORD MILLSMy Lords, I will see that the noble Lord's views are immediately out before my right honourable friend the President of the Board of Trade.