§ Mr. KILEYasked the Prime Minister whether he is aware that in numerous cases German exporters to this country are demanding prepayment in full for their merchandise; whether, in such cases, the proceeds of the duty levied by His Majesty's Customs on the arrival of the goods are to be credited to the German Government; and, if so, whether it is intended to credit the German Government with the extra 9 per cent. duty which automatically becomes payable to His Majesty's Customs by British importers 49W in consequence of this refusal of German subjects to send goods except under prepayment?
§ Mr. BALDWINI have been asked to reply. I am informed that this course is being adopted by exporters in certain cases, though as the German Government has undertaken to refund to them the equivalent in German currency of the amount collected under the Act, there is no pretext for such a demand. The amount payable to the Customs is in all cases 26/74ths of the amount paid in cash to the German exporter, and the whole amount paid to the Customs under the Act is credited to the German Government as part of the reparation payment.
§ Mr. KILEYasked the Prime Minister whether the policy of His Majesty's Government, in adhering to the arrangements whereby the 26 per cent. German reparation duty is collected by His Majesty's Customs in this country, is due to any misgiving as to the effectiveness of the arrangements of the German Government for collecting it as an export duty before the goods leave Germany; and, if so, whether he is aware that in practice it is resulting in British importers having to pay in numerous cases an equivalent of 35 per cent. Customs duty, and that this is particularly serious in so far as it affects the price of raw material for our own manufacturers?
§ Mr. BALDWINI have been asked to reply. As regards the first part of the question, I can only repeat that His Majesty's Government propose to continue the German Separation (Recovery) Act in operation until the exact effect of the arrangements to be made by the German Government is known. At present we have no information as to the nature of the arrangements for collecting the export levy which they propose I have dealt with the second part of the hon. Member's question in the reply which I have just given him.
§ Mr. KILEYasked the Prime Minister approximately the cost to date of collecting the German reparations levy in this country?
Mr. YOUNGThe general work of collecting the German reparations levy is merged in the ordinary duties of the50W Customs and Excise staff, and it is impossible to separate the cost of this one item of work from the rest. The permanent staff has not been increased since the work began, but some temporary clerical and legal assistance has been required, and has cost to date approximately £1,000.