Mr. ALEXANDERasked the President of the Board of Trade (1) whether his attention has been drawn to the difficulties now being experienced by Sheffield exporting firms under the Anglo-Spanish Payments Agreement; and what is being or will be done to prevent these delays in payment for exports becoming increasingly serious;
(2) whether he will take steps to secure the proper working of the Anglo-Spanish Payments Agreement and urge upon the Spanish Government the urgent necessity of stopping Spanish exporters from selling sterling on the so-called black exchange?
§ Captain WALLACEOn the general question of the working of the Anglo-Spanish Payments Agreement I would 1773W refer the right hon. Gentleman to the statement which was recently issued by the Controller of the Clearing Office, a copy of which follows. His Majesty's Government are aware that in certain cases attempts have been made to secure by illegitimate means sterling in respect of Spanish exports to the United Kingdom which would no doubt be sold as suggested. Steps are being taken, which will, I hope, put a stop to this practice.
Following is the statement referred to:
The Controller of the Anglo-Spanish Clearing Office has received numerous inquiries as to the delay likely to occur before United Kingdom goods (and permitted re-exports) sent to Spain at the present time will be paid for in sterling through the clearing procedure. It is impossible to frame any reliable estimate, since the delay depends on the future course of Anglo-Spanish trade and other unknown factors; but the Controller has decided, with the approval of the Treasury and the Board of Trade, to publish weekly statements for the guidance of traders. The following general description of the present position may assist traders to interpret these weekly statements.
In 1935 imports into the United Kingdom from Spain (including the Canary Islands and Spanish ports in North Africa) were valued at £13,500,000 and United Kingdom exports and re-exports to Spain (including the above-mentioned Spanish territory) were approximately £7,000,000. The actual sterling collections of the Clearing Office will, however, be substantially less than the value of imports from Spain on account of necessary deductions for freight, customs duty, commission and other charges payable in the United Kingdom before the net proceeds of sales are remitted to Spain.
Precise figures are not available but it is believed that the arrears existing at the date (13th January, 1936) of the coming into force of the Anglo-Spanish Payments Agreement and falling on the Clearing Office will be of the order of £6,500,000, while it is estimated, on present indications, that the Clearing Office will collect between £8,000,000 and £9,000,000 during the present year. On these figures, which are very rough estimates, the liquidation of the above-mentioned arrears will take between nine 1774W months and one year, and the elimination of delays will necessarily be gradual.
His Majesty's Government have represented to the Spanish Government the need for special measures being taken to liquidate the arrears by an immediate transfer in order that sterling may be released for current trade and meantime, in present circumstances, United Kingdom exporters to Spain should bear in mind the existing position as outlined above.