§ Mr. BAILEYasked the President of the Board of Trade whether His Majesty's Government will be prepared to take steps to eliminate the most-favoured-nation clause from all commercial treaties where Japan enjoys most-favoured-nation treatment?
§ Mr. RUNCIMANMy hon Friend is of course aware that the Government decided, after very careful consideration of the whole problem of Japanese competition, that an attempt should be made in the first place to deal with the problem by mutual agreement between the textile industries of the two countries. As was explained in answer to questions on Tuesday last, discussions have already taken place in India, and negotiations are about to be opened in this country in pursuance of this policy. Until their result is known, it would clearly be premature to make any statement as to what the Government would or would not do in the event of their failure.
§ Mr. CHORLTONasked the Secretary of State for the Colonies what further progress he has made with the various Colonies concerned to increase the preference to trade from this country now affected by Japanese competition?
§ Sir P. CUNLIFFE-LISTERAs my hon. Friend is aware. His Majesty's Government hope that the question of Japanese competition both in the Empire and elsewhere will he dealt with by direct agreement between the British and Japanese industrialists, The progress of the negotiations for such an agreement was reported by my right hon. Friend the President of the Board of Trade on 7th November. Pending the outcome of these discussions, and in order not to prejudice their prospects, it has been thought preferable not to proceed with 333W tariff increases in the Colonies which would bear specially on Japanese imports.
§ Major PROCTERasked the Secretary of State for the Colonies why he prevented the Jamaican Government from putting into effect Section 29 of the 1925 Tariff Law; and if, in view of the wish of the Jamaican Government to assist British trade by the imposition of a, depreciated currency duty on Japanese goods, he will now reverse his decision.
§ Sir P. CUNLIFFE-LISTERThe Jamaica Legislative Council passed in April last a resolution expressing general willingness to take action in the mutual interests of United Kingdom and Jamaica trade; but the Council rejected a proposal to take action against Japanese imports under Section 29 of the Jamaica Tariff Law of 1925 (dealing with imports from countries having a depreciated currency), which the local Government regarded as unworkable. Since then individual members of the Council have advocated the imposition of discriminatory duties against Japan on the ground of currency depreciation. No actual proposals for any such action have been submitted by the Governor; but, after consultation with the President of the Board of Trade, I informed the Governor that such action could not be taken because it would not be in accordance with the most-favoured-nation provision of the existing treaty.