HC Deb 21 October 1946 vol 427 cc293-5W
108. Mr. Ernest Davies

asked the President of the Board of Trade whether it is permissible to favour imports from countries whose economies have been disrupted by war provided that there is no

of decorated pottery, but supplies to the home market during the war were plain ware and, therefore, the proportion by quantity in T944 and 1946 would be higher than the figures shown below of the proportion by value.

PRODUCTION AND HOME SUPPLIES OF CHINA AND EARTHENWARE, excluding glazed tiles, sanitary earthenware, stone ware, electrical ware and porcelain for laboratory and industrial purposes.

Year. Production in United Kingdom. Percentage proportion remaining for home supplies.
£ million Per cent.
1935 7.6* 74
1944 9.1 58
1946 12.6† 50
* The figure includes a small proportion of pottery or similar products not for domestic use.
† Annual rate, based on figures for the first six months of the year.

Separate figures relating to the production of cups, plates, etc., are not available for any pre-war date. The following table shows the numbers of cups, mugs and beakers, small plates, large plates, and teapots and coffee-pots produced in this country during the years 1944 and 1945 and the annual rate of production in the first half of 1946, together with the numbers of such articles produced which remained available for home supplies after deduction of the amounts exported or supplied to Government order.

substantial departure from the general rule of non-discrimination; and whether he will make a statement.

Sir S. Cripps

Yes, Sir. The following statement explains what the Government are doing and how it fits in with the general need to restrict imports to protect the balance' of payments:

  1. 1. The protection of our balance of payments makes it necessary that for the time being import licences should normally be granted only for essential goods not available in adequate quantities from home production. This basic policy is not substantially modified by the arrangements made with certain overseas countries under which "token imports'' of certain goods not hitherto permitted may be allowed to be imported within a strictly limited percentage of the value of imports of like goods in a pre-war period. These arrangements have been made to allow overseas traders to maintain their pre-war connections with our home market.
  2. 2. It is, however, possible as a temporary measure, to adopt a somewhat more liberal policy towards imports from certain countries than our overall balance of payments position at present permits us to adopt generally. These countries' economies have been severely disrupted by the war and certain of them are very short of sterling. Increased purchases from them serve the dual purpose of providing more supplies for United Kingdom consumers and assisting these countries to get back on to their feet. Since some of the countries whose economy has been severely disrupted through the war have available for export certain goods of a non-essential and sometimes even of a luxury type, it will be necessary to admit some of these for importation to this country if the aim of assisting those countries is to be achieved, but the emphasis will be placed wherever possible upon the consumer goods and foodstuffs which are now urgently required by the people of this country.
  3. 3. Arrangements have already been made in accordance with this policy to allow certain imports from France, Holland and Czechoslovakia and the policy is being extended to Greece Yugoslavia, Italy and Austria. Further extensions may be considered from time to time. Each class of goods will have to be considered on its merits and the policy will need to be subject to review in the light of changing conditions. The fact that production in this country of a particular class of goods may be claimed to be adequate for the needs of consumers will not necessarily constitute a reason for excluding imports, but in considering the level of imports to be allowed of particular types of goods regard will be had to the extent to which production of like goods for the home market may be limited by control measures or may be subject to price or quality restrictions.
  4. 4. As has been frequently stated, the purpose of import restrictions is to protect the balance of payments. Manufacturers must realise that they cannot rely on protection for their products by import restrictions continuing longer than is necessary for balance of payments reasons.