§ 79. Mr. Burkeasked the Secretary for Overseas Trade, as representing the Chancellor of the Duchy of Lancaster, the terms of the agreement by which the Aluminum Company of Canada is to supply 2,640 tons of magnesium to this country; and why the Magnesium Elektron factory, near Burnley, which is at present idle, cannot be used to meet this demand.
§ Mr. MackesonIn return for a loan of $2,200,000 towards the capital cost of expanding their magnesium producing capacity the Aluminum Company of Canada has undertaken to make available 2,640 tons of magnesium per annum to the United Kingdom over 20 years, beginning in 1954, at a cost not to exceed the lowest domestic price in Canada at the time of delivery.
Careful consideration was given to the question of re-opening the Lowerhouse factory before this agreement was made, but in addition to other difficulties, the estimated cost of magnesium produced at Lowerhouse would be substantially higher than magnesium brought from Canada under this arrangement.