§ Mr. Rhys Daviesasked the President of the Board of Trade whether he is aware that, as a result of restriction of sales on the home market, the export trade in cotton goods may be prejudiced; and will he take steps to permit that substantial volume of home trade which is a necessary basis for a prosperous export trade?
§ Sir A. DuncanThe limitation on sales of cotton goods on the home market was designed primarily to ensure that the heavy volume of Service orders would be met at the expense of domestic civilian consumption rather than of production for export. Service demands on the cotton industry remain heavy. Any surplus of productive capacity that may become available will, it is hoped, be largely absorbed as a result of the efforts now being made by the Cotton Board to encourage export trade. I must emphasise, however, that the Government cannot permit the use of materials, which cost us shipping and foreign exchange, to meet unessential home demands, and that to do so would be a wasteful employment of the resources on which we depend for victory.