HC Deb 30 November 1943 vol 395 cc232-4W
Mr. Ellis Smith

asked the President of the Board of Trade who were the British directors of I.G. Dyestuffs, Limited, who carried out the discussion with Herr Kôhler, director of the I.G. German monopoly in charge of their interests in Eire, Australia, Canada and United States of America; to what extent I.G.D. was controlled by the German parent company; and what action he has taken in view of the fact that the whole of the stocks in this country were the sole property of the German I.G.F. and remittances from the sales were made through an account in Hambro's bank?

Mr. Dalton

As I informed my hon. Friend on 9th November, the British directors of I. G. Dyestuffs were Messrs. A. H. George, Frederick Taylor and John Dalby. Herr Kohler, the German director, resigned shortly before war broke out. I do not know what discussion is referred to, but control over I.G. Dyestuffs previously exercised by I.G. Farben, ceased on the outbreak of war, when all shares suspected of being in beneficial enemy ownership were vested in the custodian, who placed the company in liquidation and now holds the proceeds of the liquidation.

Mr. Smith

asked the President of the Board of Trade how far the I.G. German monopoly, the I.G.D. and the General Dyestuffs Corporation, New York, were linked up and maintained close commercial, technical and research relations; whether the General Dyestuffs Corporation exported to Britain after 1939; did Herr Kôhler make arrangements for Kleinwarts to finance the United States shipments; was Kôhler in touch with Britain though New York and Eire; did he arrange the meeting that took place on 24th January, 1940, in the Hotel Columbia, Italy; and what was the result on German interests in fine dyes and chemicals?

Mr. Dalton

There was, no doubt, before the war, a close relationship between I.G. Farben and all its subsidiary companies. Certain imports into the United Kingdom from the General Dyestuffs Corporation of America were permitted, by special licence, on the ground that they were urgently required for the British war effort. As regards the latter part of my hon. Friend's Question, I am making certain inquiries and shall be grateful for any information which my hon. Friend can give me.

Mr. Smith

asked the President of the Board of Trade what steps during 1938 were taken by the I.G. German monopoly to put I.G.D. Limited, on a different basis in order to safeguard the German interests in this country; what banks financed the transaction; was he aware that the company was reconstructed by a Dutch finance company controlled by German interests and later reorganised to make further safeguards, the share stock being transferred to a nominee holder; and what action was taken?

Mr. Dalton

According to the report of the inspector appointed by the Board of Trade in October, 1939, the business of I.G. Dyestuffs, Ltd., consisted mainly of selling on commission, dyes, chemicals, etc., received from I.G. Farben of Germany. In September, 1938, I.G. Farben sold the stocks of goods consigned to I.G.D. to a Dutch company, which, I understand, was closely associated with I.G. Farben, but in December, 1938, they bought them back and the old relationship between I.G. Dyestuffs and I.G. Farben was revived. There is no evidence that this transaction was carried out through any bank. There were several changes in the shareholding of I.G. Dyestuffs from 1926 onwards. Up to 1935, the majority shareholders were two German companies. From 1935, the majority interest was held, nominally, up to July, 1939, by one Dutch company, and thereafter by another Dutch company. As I informed my hon. Friend on 9th November, the Board of Trade had reason to believe that these shares were held on behalf of I.G. Farben. Accordingly, they were vested in the Custodian of Enemy Property and subsequently the company went into liquidation.