§ 102. Mr. Horobinasked the President of the Board of Trade whether, in view of the importance of expediting provision of a spot market for raw cotton, he can now make a statement with regard to consignment cotton.
§ Mr. P. ThorneycroftDetails of the procedure for the private import of cotton, including arrangements for the import of cotton on consignment, have now been worked out by the Cotton Import Advisory Panel, which contains representatives 'of the spinners, merchants, trade unions and the Raw Cotton Commission. I will arrange for a copy of the circular which will be going to users of raw cotton and merchants in the next few days, to be sent to my hon. Friend and for copies to be placed in the Library of the House.
The new arrangements for the import of cotton on consignment are simple, and broadly as follows. No special arrangements will be necessary for sterling cotton on consignment as distinct from ordinary imports, as there is to be no limit to the amount of raw cotton which may be purchased from the sterling area. In the case of cotton which does not originate in the sterling area, it is the intention of grant open individual licences to bona fide merchants acting on behalf of foreign shippers to import as much cotton as they 60W wish on consignment. These licences will carry no right to foreign currency, which will be made available only when the cotton is sold against a valid entitlement.
The main effect of these new arrangements for consignment cotton will be that under this procedure cotton need only be bought from overseas suppliers when the customer in this country, whether a private trader or the Raw Cotton Commission, decides after sampling that he wants to buy. The existing arrangements do not provide this facility, as all cotton has to be bought overseas before it is imported. I hope, therefore, that these new arrangements will help to revive a spot market and increase Lancashire's competitive power in the markets of the world.