asked the Minister of Shipping whether the fullest consideration was given when the terms of payment for requisitioning were fixed, to the necessity of British shipping being in a strong financial position on the termination of hostilities, to enable them successfully to compete with foreign shipping?

Yes, Sir. I would refer my hon. Friend to the statements on this subject which were made by my predecessor and my hon. Friend the Parliamentary Secretary during the course of the Debate on Shipping on 18th March last.

May I ask my right hon. Friend whether the requisitioning rate will give ship-owners a sufficient amount to enable them to build up their reserve for replacement, and at the same time give them a reasonable return on their capital?

I think that is a point which must be present in all our minds when we are negotiating these details.

asked the Minister of Shipping whether he can now make a statement on the negotiations in connection with the rates for hire of requisitioned vessels?

Proposals resulting from negotiations with the representative bodies were recently put before their constituent members and are now under their consideration.

Is not the case that an agreement has been reached with the liner companies; and cannot hon. Members be informed of the terms of that agreement?

Briefly the position is that the cargo liner companies have expressed their agreement in principle but there are subsidiary details, which are still being negotiated.

Will the right hon. Gentleman bear in mind that it is highly undesirable to have discontent in the shipping industry over this matter and that it is highly desirable to have a speedy termination of these negotiations?

Yes, Sir, I am doing and will do everything in my power to see that they are concluded as quickly as possible.

asked the Minister of Shipping whether he can now give an answer to the letter from the hon. Member for Newcastle, Central, dated 12th February, 1940, on the subject of compensation to traders on the requisitioning of ships?

As I have informed my hon. Friend, the issues which he raised affect other Departments besides the Ministry of Shipping. They are at present under active consideration.

While thanking my right hon. Friend for his reply, may I ask him to bear in mind that this is a very urgent matter, to save certain ship-owners from going bankrupt?

Is compensation to traders for the requisitioning of ships to be comparable with the compensation which is given to the working class of this country whose sons have been commandeered for the Army?

The question raised by my hon. Friend the Member for Central Newcastle (Mr. Denville) had reference to increased charges for certain goods caused by vessels being diverted from one port to another.

Is it the case that more value is being attached to ships than to human lives?

That is not so.

asked the Minister of Shipping whether he will consider exempting woollen comforts coming into this country for the benefit of the seafarers of the Mercantile Marine from freightage by the Ministry, on the same basis as comforts for the fighting services?

In any arrangements for the free carriage of comforts from overseas no distinction is made between comforts for the merchant navy and those destined for the fighting services.

Am I right in supposing that both have to pay freightage; and would it be possible to exempt them from that charge?

They are both being carried free.

Is my right hon. Friend quite certain about that? Is it the case that no distinction is made between the two?

Yes, Sir.

asked the Minister of Shipping how many vessels are in South Wales ports awaiting coal cargoes?

This morning the number of ships awaiting bunkers or coal cargoes is reported to be 14.

Can the right hon. Gentleman give any reason why 14 vessels should be awaiting cargoes; and is it not the case that in the last two months many more vessels have been awaiting cargoes?

I think the hon. Gentleman will agree that this figure represents a considerable improvement over the situation which prevailed a few weeks ago. I understand that the slight delays which are still occurring are due to the shortage of coal.

Can we have an assurance that this very important matter is well in hand?

Yes, Sir.

asked the Minister of Shipping the nature of the accommodation for the crews of new vessels being built to the order of the Ministry; and whether it includes all the latest improvements?

The Merchant Shipbuilding Department of the Admiralty are embodying in vessels which are being built for the Ministry of Shipping crew accommodation fully up to the standard required by the Board of Trade Instructions as to the Survey of Masters' and Crew spaces, which were issued in 1937.

Can the right hon. Gentleman say whether the accommodation on these new vessels is uniform and is similarly situated in vessels of different types?

I understand that it is up to the standard which was laid down by agreement between the various parties.

asked the Minister of Shipping whether he is in a position to make a statement on the arrangements that have been made between the British and French Governments for the control of Allied shipping?

The machinery which has been set up for the co-ordination of the economic war efforts of this country and France includes an Anglo-French Permanent Executive Committee for Shipping. Its function is to provide for the allocation of the tonnage at the disposal of the Allies (including any neutral tonnage) to secure that the agreed import programmes are carried out. This Committee has been in operation since the beginning of December last.

Are we to understand that the Mercantile Marines of the two countries will be brought under unified control?

As far as it is a question of agreement on how they can be worked in order to assure an agreed Allied import programme, the answer is "Yes."

asked the Minister of Shipping how many ship broking firms have gone out of business, and how many clerks engaged in ship broking have been rendered unemployed through the operation of the Ministry; and whether he can now state what he proposes to do in respect of the representations made by ship broking firms?

I have no figures as regards the first part of the hon. Member's Question. As regards the second part, the representative bodies have before them proposals already outlined to the House.

As many of these businesses have had to be discontinued as a result of Government action, is there not an obligation on the Government to come to their assistance in some way?

The hon. Member knows that this is a very difficult question. I propose to give it my personal consideration.

Are these clerks instructed to register at the Central Registry of the Ministry of Labour?

I would like notice of that Question.

asked the Minister of Shipping what extra payment is being made to seamen employed on ships carrying munitions of war; and whether such payment applies to all members of crews?

Extra payments are made to all members of the crew of ammunition ships who are actually engaged in handling the ammunition.

asked the Minister of Shipping (1) whether the provision of extra rafts on board the decks of merchant ships has been put in operation during the war period; and if consideration has been given to placing automatic lights on all rafts, so as to enable them to be visible at night during darkness;

(2) whether the installation of lifebelt automatic lights has been adopted for the safety of the crews of merchant ships for the war period, so as to minimise the loss of life at sea during the hours of darkness?

Under the Merchant Shipping (Additional Lifesaving Appliances) Rules, 1940, which came into effect on the 8th March, it is compulsory for all seagoing ships, engaged on voyages within European waters, to carry approved buoyant apparatus sufficient to support all persons on board. Each unit of apparatus is required to be fitted with an approved self-igniting light. Active steps are being taken, in conjunction with manufacturers, with a view to the early production of lights suitable for attachment to life-jackets.

Has consideration been given to the possibility of fixing, on the lifebelts, lights of a different colour from those on the rafts, so that sailors struggling in the water may be distinguished from the lights on the rafts?

These questions are being considered by a committee at the present time.

asked the Minister of Economic Warfare whether he is aware that 2,140,000 barrels of American oil have arrived at Vladivostock since September, and what steps he has taken to prevent this addition to the strength of the enemy?

I regret that I am unable to state whether or not the figure mentioned by the hon. Member, which I presume is supposed to cover the period from 1st October to 31st March, is accurate. The official monthly trade returns published by the United States Government do not distinguish exports of oil or any other commodity except cotton by country of destination. I have seen various figures from different sources relating to this traffic but, as these differ from each other, I would prefer to reserve judgment on them for the present. As regards the second part of the Question, I have nothing to add to the reply given to the hon. Member for Central Bristol (Lord Apsley) on 21st March.

May we have an assurance that firm and definite steps are being taken to prevent this increase of strength to the enemy?

As I indicated in the answer to which I have referred the hon. Member, these imports of oil, although much above the 1938 figures, are not in excess of the quantities imported in some previous years. I believe that this oil is required by the Soviet for their own use in the Far East and is not being re-exported to Germany.

Has any assurance been asked for or obtained from the Soviet Government that it will not be re-exported?

Is there any case in history in which petroleum has been sent 6.000 miles by railway train?

asked the Minister of Economic Warfare whether, in view of the fact that the total exports from the Netherlands Indies to Vladivostock between January and August, 1939, were 520,000 kilograms, whereas from September to December, 1939, they rose to 10,611,000 kilograms, he will state what steps are being taken to prevent these supplies reaching Germany?

The hon. Member may be assured that steps are being taken in this matter, but he will appreciate that it would not be in the public interest to state what these measures are.

May we have an assurance that the steps taken will be in time and not too late?

They will be taken as rapidly as possible.

asked the Minister of Economic Warfare what steps are being taken to prevent the export to Germany from the ports of Dubrovnik and Susak, of bauxite, lead ore, cement and other articles?

Reports in the Press have been brought to my notice of German ships loading such cargoes in Yugoslav ports. According to my information, however, there has only been one such cargo loaded up to the present. His Majesty's Government are carefully watching this traffic and can be relied upon to take any steps to check it which they consider practicable.

Do I understand that the Minister has no information whatsoever on this subject, except what he has seen in the Press? If so, is it not a grave reflection on our representatives abroad?

I have information of one ship, and one ship only.

asked the Minister of Economic Warfare whether His Majesty's Government are taking any steps to prevent industrial diamond exports from this country reaching Germany?

The export of industrial diamonds from this country is prohibited except under licence of the Board of Trade. A committee having a special knowledge of the diamond trade, on which the Ministry of Economic Warfare is represented, has been set up to advise the Board of Trade on all applications for export licences, to ensure that no industrial diamonds reach enemy territory.

Is the Minister aware that it is alleged that a number of diamonds, exported under licence, go to Holland, and through Holland to the Germans? Has he any information on that matter?

I am not aware of that allegation. This trade is being carefully watched, but if the hon. Member has any particular information of value I shall be very happy to have it.

asked the Secretary of State for War whether he has yet received the report of the Court of Inquiry into the alleged activities of a financial agent in connection with contracts; and whether the report will be published?

asked the Secretary of State for War whether he is now in a position to announce the findings of the recent Court of Inquiry regarding War Office contracts; and what action he proposes to take in connection therewith?

The report of the Court of Inquiry has been received, and the Army Council have reached decisions on its findings, in relation to the Army officers whose actions were subject to inquiry. These decisions have been communicated to the officers concerned, and one of them has made certain representations, as he is entitled to do under the Army Act. Until I have had time to consider these representations, I think it would be premature to announce the action taken. I expect to be in a position to make an announcement at an early date.

asked the Secretary of State for War whether he will state the average weekly number of commissions granted during the last three months; and what is the total staff, military and civilian, of the Department which deals with the granting of commissions?

The answer to the first part of the Question is 740. Selection of candidates for commissions is, of course, the concern of many separate branches in the War Office among many other duties, according to the arm of the service and the source from which the candidate comes, but the staff dealing with the actual process of first appointments to commissions consists of three officers, 11 civilian clerks and one civilian typist.

Do I understand that that represents the total number of inhabitants in Hobart House?

No, Sir. If my hon. Friend reads my answer he will see I said that there are a great many other branches which, in one way or another, deal with the granting of commissions.

Is the Minister satisfied that all these commissions are granted on merit?

Certainly, my endeavours are to see that they are, and every step is taken to make certain that they are only so granted.

Are the three officers mentioned the officers who post new officers to the different regiments?

No, Sir.

Are professional footballers and professional cricketers who have been made officers given their commissions on merit?

Even professional footballers and cricketers may have merits.

asked the Secretary of State for War whether, in view of the many photographs that have been published in the British and neutral Press of English prisoners in Germany, similar facilities will be granted for photographing German prisoners in English internment camps?

No, Sir. This is not considered to be desirable, though there is no objection to visits to the prisoner of war camps by accredited representatives of neutral Powers.

Will not the Minister agree that there has been considerable propaganda value to Germany in the publication of these photographs in neutral countries, and what is the objection to similar methods being adopted here?

I think it is against the ideas of most people in the country—certainly it is against mine—to make peep-shows of people who have the misfortune to be prisoners of war.

asked the Secretary of State for War on what date, and by whom, was the inquiry held into the dismissal of Major Alan Reid-Kellett, D.S.O., M.C., from his employment, civilian, as garrison engineer, Larkhill?

asked the Secretary of State for War what were the reasons for the dismissal of Major Alan Reid-Kellett, D.S.O., M.C.; and whether any inquiry is being made into his allegations of extravagance, waste and inefficiency in building camps and other Government works?

There is no reason for a formal inquiry into the termination of Major Reid-Kellett's employment and none has been held. The specific allegations which he made were grave in character and were judged, on inquiry by the War Office, to be without foundation. As, however, these allegations were persisted in, my predecessor asked my hon. and learned Friend the senior Member for Bolton (Sir C. Entwistle) to conduct an inquiry into them, and he reported that they were completely unfounded. A copy of this report has been furnished in confidence to the Select Sub-Committee on Army Expenditure. It would clearly not be in the interests of good working that Major Reid-Kellett should again be employed in a department against which he has made allegations which he has failed to substantiate.

Is the Secretary of State for War aware that the Financial Secretary to the War Office stated to me in this House last week that a proper inquiry had been held on this matter? Is he further aware that the inquiry to which he refers is not in any way complete, and that, in fact, this officer has been employed as a civilian, dismissed from a particular work for a report which he had rendered on a previous work, and that no appropriate inquiry has been held?

I cannot agree with that. Not only has there been an inquiry made in the War Office, but my predecessor, because the charges were persisted in, through excess of caution asked my hon. and learned Friend to undertake an independent inquiry. He undertook that inquiry most thoroughly and came to the conclusions I have stated. A copy of this report has been furnished to the Select Sub-Committee and they will be able to form their judgment upon it.

I beg to give notice that I shall raise the matter on the Adjournment on the earliest possible occasion.

asked the Secretary of State for War to what extent a travelling allowance is made by regimental units to secure that, approximately, the same time at home is assured to all men granted leave; and whether he will consider making this practice universal?

I would refer the hon. Member to the answers given to my hon. Friend the Member for Down (Dr. Little) on 12th March and 4th April.

Did not those replies refer to the men with the Expeditionary Force?

One answer did, and the other answer referred to the alternative which is given to men serving at home, to take a shorter leave more often, or a longer leave at shorter intervals.

Is it quite impossible for the War Office to solve a simple problem like this? If they cannot solve this, how do they hope to win the war?

asked the Secretary of State for War what is the weekly compensation payable to a soldier for wear and tear of civilian clothes worn when on military duties; and whether there is any maximum to the compensation that may be paid?

The compensation payable to a soldier for wear and tear of civilian clothes worn on military duty is at the rate of 3s. 6d. a week when no greatcoat, uniform or boots are issued, and is subject to a maximum payment of 28s. There are lower rates applicable when part of the outfit is issued. It is now exceptional for the issue of an allowance to be required.

asked the Secretary of State for War whether he is aware that Queen's Army school-mistresses married to serving soldiers are not allowed to draw the wife's allowance although soldiers wives who are in employment as civilian school-teachers are; and whether he will take steps to end this anomaly by making Army school-mistresses otherwise qualified for the allowance eligible to receive it?

I am looking into this Question.

asked the Secretary of State for War whether instructions will be issued to all commands that the card of the National Union of Journalists, accepted by the Chief Constables' Association, shall be recognised as authority on the part of reporters to make legitimate inquiries, provided that the identity of the holder be vouched for by a magistrate, or otherwise confirmed?

The membership card of the National Union of Journalists cannot be accepted as conferring a right to carry out activities in all military areas, but, when permission is sought to visit any military station or establishment to which bona fide Pressmen may be admitted, the production of a membership card of the National Union of Journalists, containing a photograph of the holder, will be accepted as one method of establishing bona fides. The Secretary of the National Union of Journalists and all Home Commands have been so informed. These arrangements will also apply where a membership card of the Institute of Journalists is produced to the appropriate authority. The general question of the authority to be produced by journalists as a means of identification is being considered.

asked the Secretary of State for War why Mrs. M. Sill, of 45, Castle Grove, Kendal, has been penalised by the loss of 16s. from her allowance as a result of her husband, No. 3597603, of the 4th Border Regiment, being punished for the offence of attempting to drink coffee while on duty, as such penalisation of wives for minor offences committed by the husbands in the Army is contrary to declared policy?

I have ascertained that a sum of 8s. (not 16s.) in respect of allotment from her husband's pay was deducted from the payments to Mrs. Sill in consequence of a forfeiture of eight days' pay which Private Sill incurred in February last. Under the procedure now in operation, payment to the wife is continued in such cases and the amount involved charged against the soldier's account for subsequent recovery, for a period up to 28 days. Instructions have been given for the 8s. in question to be paid to Mrs. Sill and charged against the soldier's account in accordance with this procedure.

asked the Secretary of State for War whether he is aware that the troops in Palestine are not receiving the same treatment as members of the forces in France; that they are unable to purchase cigarettes duty free, and are obliged to pay full postal rates; and, in view of the fact that due to their distance from home it is impossible for them to get leave and they frequently have reason to use the air mail, will he approach the Government of Palestine with a view to extending to the troops in that area all the privileges now granted to the troops in France?

As has been stated in reply to previous Questions on this subject, the distinction between troops in France and those elsewhere lies in the fact that the former are serving in a theatre of active operations; but the Navy, Army and Air Force Institutes are able to import goods into Palestine practically free of duty and to sell cigarettes to the troops there at prices very much less than those charged in this country. As regards the last part of the Question, I would refer my hon. Friend to the answer given to my hon. Friend the Member for Henley (Sir G. Fox) by my right hon. Friend the Chancellor of the Exchequer on 12th December last.

Will not my right hon. Friend see that the troops in Palestine have the same facilities as those prevailing in France?

I have explained why that is not possible, but special provision has been made by the institutes, and it is possible for troops to buy these things through the institutes at prices which compare favourably with the prices which the soldiers would have to pay if they were in this country.

asked the Secretary of State for War whether he is aware that ration money is sometimes not paid till the expiration of a soldier's leave, with consequent financial hardship; and will he arrange for a soldier always to be paid his ration money when he commences his leave?

If the hon. Member will let me have particulars of the cases he has in mind, I will have them investigated.

asked the Secretary of State for War whether he is aware that essential agricultural production in support of the Government's food campaign policy is still being seriously interfered with by military operations, for instance, in the Swindon and Marlborough areas; and whether there has been any consultation between the local military command and the Wiltshire County War Executive Agricultural Committee to obviate this interference, and with what results?

The needs of military training cannot, unfortunately, be met without interference with agricultural interests, but every effort has been made to reduce this disadvantage to a minimum, and the War Office has throughout maintained close consultation with the Ministry of Agriculture. In the case of the area to which my hon. Friend refers particularly, there has been consultation with a representative of the county war executive agricultural committee, and various modifications in the proposals originally put forward by the military authorities were made.

Is my right hon. Friend considering the instances given to him where fences have been broken down, gates left open where stock is, and tanks and guns taken where lambing is going on, greatly to the detriment of agricultural operations?

I will look into cases of negligence, but we do make every effort when we take ground for training purposes to arrange beforehand with the local inhabitants to try and make use of the ground in a way that will cause the least possible damage to agriculture.

asked the Secretary of State for War whether he is aware that Private G. Boycott, No. 3526238, is alloting 10s. 6d. a week out of his Army pay to his widowed mother, who resides at 16, Bold Street, Leigh, and no dependants' allowance is given to her because her son is a Regular soldier, and therefore, is held not to come within the regulations of contributing to the home six months before the war broke out; and will he consider bringing all soldiers within the allowance scheme?

Dependants' allowance is designed to provide for cases in which hardship is caused through men who have joined the colours in connection with the war being unable to continue support which they had previously been giving to dependants. It is not a normal emolument of the Regular Army; but, where in fact a soldier who was serving before the war was for the six months preceding the outbreak of war contributing towards the support of a dependant an amount in excess of the qualifying allotment appropriate to his rate of pay and on a scale which would have rendered a dependant's allowance admissible had he been in civil life during that period, an award can be made. The previous contribution by the soldier is an essential feature of the scheme. According to my information, Private Boycott was making a contribution of only 3s. 6d. a week up to 20th March, 1939, when he increased it to 7s. a week. In those circumstances, an allowance in his case is not admissible.

Will the right hon. Gentleman take into account the fact that many of these young men were apprentices before they joined the Regular Army, and that this test of what they were contributing before they went into the Army is very unsuitable?

Is the right hon. Gentleman aware that the conditions of the home in this case have changed since the man joined, that the mother is now out of work, and that the man was contributing 7s. a week before May last? If I send particulars to him will the right hon. Gentleman go into the matter?

Yes, I will look into it.

Does not the Minister consider that where a serving Regular soldier before the war has been making some contribution to dependants it establishes, at any rate, partial dependency, so that something ought to be paid?

The conditions are quite different. The whole basis of the dependant's allowance is that the man has been taken away from his civilian occupation and it has been made impossible for him to contribute to the family on the same scale as before. The Regular soldier is in the same position financially in war-time as he was in peace-time, and he is able to continue making the same contributions in war-time as he did in peace-time.

Does not the Minister see that this is unfair and is causing a great deal of discontent in the country?

asked the Secretary of State for War whether he will consider how a fine of £2,imposed on a serving soldier while acting as chauffeur to an officer, ought to be met in the best interests of the soldier and the Service; whether he will consider issuing instructions for setting up a regimental insurance fund to meet such incidents or otherwise to ease the burden from the shoulders of a soldier receiving 6s. per week; and whether he has any statement to make on the subject?

A soldier acting as a chauffeur who commits a breach of the Road Traffic Act or other civil offence is liable to penalty in a civil court equally with any other person, and I see no justification for a regimental insurance fund. It is the practice to pay fines on the soldier's behalf and to recover the amount from him by instalments.

Does not the right hon. Gentleman consider that a serving soldier acting in a case of this sort is in quite a different position, so far as ability to pay, from that in which he would be if he were a civilian?

I cannot agree that he is in a different position, because the law applies to him as a soldier equally as it does to a civilian and he has to obey the law in just the same way.

Is it not a fact that if a serving soldier disobeys an order of an officer, that is under military law? What is a man to do if an officer orders him to disobey the civil law?

That is a hypothetical case. If an officer gave a man an order to disobey the civil code it would be a grave disciplinary offence on the part of the officer and would certainly have to be punished.

asked the Secretary of State for War how many English officers from English regiments have been posted to Scottish regiments since 1st January, 1940; whether he is aware that such transfers have prevented Scottish cadets, the sons of Scotsmen, from being posted to Scottish regiments; that this causes discontent and is lowering the morale of Scottish units; and whether he will give an assurance that the practice complained of will cease?

I regret that no record has been kept which would show the number of English officers from English regiments posted to Scottish regiments since 1st January, 1940. But I am assured that, except in the case of Home Defence battalions, the number is negligible, and that such a posting is not made except when there is a particular requirement for which no Scottish officer is available. Even so, endeavour is always made to provide an officer of Scottish descent. I do not think, therefore, that the effect can be such as the hon. and learned Member indicates.

Is the right hon. Gentleman aware that Scottish officers are swarming in English regiments, who do not really mind very much?

Is the right hon. Gentleman not aware that this is causing very grave concern among officers and men, both those in Scottish regiments and those prevented from joining Scottish regiments, and can he say what is the machinery for posting officers to particular regiments?

It will only be causing concern at all if the facts are misrepresented. This posting seldom occurs, and only when a specialist officer is required for any particular job and when there is no Scottish officer available.

Could my right hon. Friend say how many Scottish officers are serving in the Navy?

asked the Prime Minister whether he is now in a position to state the name of the Member of the War Cabinet who is now to preside over the committee dealing with agriculture?

My right hon. Friend the Lord Privy Seal will preside over the committee in question.

Does my right hon. Friend realise that up to now we have not had a clearly denned policy in regard to food production; and will it be the task of the Lord Privy Seal to visualise something rather more than the indiscriminate ploughing-up programme, so that we may have the maximum output?

I cannot accept my hon. Friend's view.

asked the Minister of Agriculture what acreage of grassland was scheduled to be ploughed up in the counties of Northumberland and Durham, respectively, under the £2 an acre scheme; and how many acres have been ploughed to date?

I would refer the hon. Member to a reply I gave to a similar Question by the hon. Member for Cheltenham (Mr. Lipson) on 4th April. I do not think that it would be in the interests of the food production campaign to publish the information asked for at this stage, but I can say that good progress is being made in both counties.

Has the quota been approximately reached?

Very good progress is being made.

asked the Chancellor of the Exchequer whether he is aware that the fall of sterling is creating a very unfavourable impression in neutral countries; and what steps does he propose to take to reinforce exchange restrictions and to block foreign balances?

asked the Chancellor of the Exchequer (1) whether he is aware that there is a free market on the London Stock Exchange for the sale by aliens of sterling securities, and that during recent weeks large quantities of such securities have been sold there by American owners who have converted the sterling payments received into dollars on the unofficial exchange in New York; thereby causing a heavy fall in the sterling exchange; and what steps he is taking to prevent such action;

(2)whether he is aware that portions of the sterling payments made by the Treasury to British owners of dollar securities have been utilised by the recipients in purchasing large quantities of international sterling securities, such as British-American tobacco shares, gold mining and oil shares from American owners who have converted the sterling payments into dollars; and what steps is he taking to prevent the purpose of requisitioning dollar securities being thereby nullified?

asked the Chancellor of the Exchequer whether he will now place an absolute embargo upon the withdrawal of funds from this country by aliens living abroad?

asked the Chancellor of the Exchequer whether he will take steps to bring about a recovery in the value of free sterling in America, in view of the fact that the free franc and the Canadian dollar have fallen in sympathy with free sterling?

asked the Chancellor of the Exchequer whether he has any statement to make in regard to the present low position of sterling on the New York exchange, and as to what effect this will have on Anglo-American trade relations?

asked the Chancellor of the Exchequer whether he has any estimate of the total amounts held by foreign residents in the form of sterling balances; and whether he pro poses to take any steps to block the disposal of these in order that he may prevent further depreciation of sterling in the unofficial market?

asked the Chancellor of the Exchequer (1) whether he has any estimates as to the proportion that the turnover in the unofficial market in sterling during March bore to transactions in the official market;

(2) in view of the fact that recent depreciation of the free sterling rate tends to cause a rise in the price level and of the cost of living in this country, what steps he intends to take to reverse the fall of sterling by tightening the exchange restrictions?

The matters referred to in these Questions are technical and it is difficult to compress an answer within ordinary limits. I have prepared a considered statement, and, with the leave of hon. Members, I will circulate it in the Official Report.

Is that method of answering all these questions a way of avoiding inconvenient Supplementary Questions?

No, it has nothing to do with that at all.

Is my right hon. Friend aware that there is a growing feeling in the country that the Treasury are not using their full powers in regard to foreign exchange?

May I invite my hon. Friend to consider the statement which I am circulating?

Is the right hon. Gentleman aware that the feeling in the country is that he is not taking enough from the rich?

Is it not the case that all the monetary reformers up to now have been in favour of the depression of the pound sterling because they wanted inflation?

asked the Chancellor of the Exchequer whether he is aware that the rate at which Treasury bills are discounted is virtually fixed by a powerful market syndicate; that the rate to-day at over 20s. per cent. is nearly double the average rate for the first 11 weeks of 1939, although the Bank Rate is the same; and what steps he proposes to take to see that Treasury bills are allotted through a system of genuine tendering?

I am satisfied that no syndicate does, or could, virtually fix the rate at which His Majesty's Government can borrow on Treasury bills; this is inevitably governed by a number of factors on which the rate must depend. I see no reason to alter the conditions under which tenders for Treasury bills are lodged.

Is the Chancellor not aware that there is a group of 16 firms, virtually a syndicate, who settle the price at which Treasury bills are discounted before even the five joint stock banks come in?

Although the hon. Member speaks very confidently I think he will find that he is wrong. If he will examine his Question he will see that it contains three different dates. On each of those dates the price of Treasury bills was different, and yet on all those dates the Bank Rate was the same.

Does the Chancellor realise that he has not even attempted to answer my Supplementary Question? If I furnish him with the names of the persons, will he give an assurance that they have nothing to do with the fixing of the Treasury discount rate?

Is it not a fact that the interest rate on Treasury bills is 200 per cent. less than it was during the last war?

Is it not a fact that the last war was a racket?

asked the Chancellor of the Exchequer whether he is aware that during the first eleven weeks of 1939 the Treasury bill discount rate averaged 11s. per cent., and that the average rate for 1938 was 12s. 6d. per cent., as compared with over 20s. per cent. to-day; and whether he will take steps to reduce the Bank Rate so that the discount rate may be restored to the lower figure?

Although my information gives slightly different figures from those in the first part of the Question, their relations are broadly the same. As regards the second part of the Question, I would refer to the reply given to a Question by the hon. Member for Kennington (Mr. Wilmot) on 27th February last. I see that it was to this Question that I was referring in reply to the hon. Member's Supplementary Question just now.

Does the Chancellor of the Exchequer wish us to understand that the Treasury do not at the present time instruct the Bank as to the alteration of the Bank Rate?

If the hon. Member will refer to the answer which I gave he will find that the considerations which he asks about are dealt with there.

asked the Chancellor of the Exchequer whether it was with his authority that Lord Stamp, economic adviser to the Government, addressed a Press conference at the Ministry of Information on Monday, 1st April, at which he made certain statements regarding future taxation policy?

I was aware that the Ministry of Information proposed to arrange a Press conference on economic issues, excluding budgetary and financial matters, and to a conference which observed these limitations I took no objection. I am informed that it was explained at the outset that the talk would be confined to economic issues; for this reason, and because it is well known that any statements about future taxation policy made in advance of the Budget are without authority, there would be no justification for interpreting what was said on this occasion as in any way indicative of such policy.

Does the Chancellor think it is good public policy that a person occupying so high a position, and concerned with financial matters, should make statements on financial subjects without consulting the Chancellor, which statements subsequently had to be repudiated?

If the hon. Member will study my original answer he will see that I have explained what were the limits of this conference.

Is it not the case that Lord Stamp's statement was to the effect that if £12 a week men did not accept additional taxation they would have to submit to compulsory savings?

I have not the least idea.

asked the Chancellor of the Exchequer whether he has considered the appeal made to him by the sub-post masters for an increase in their remuneration to meet the increased cost of living; and will he state what he intends to do?

I have received no appeal from sub-postmasters for an increase in their remuneration on cost-of-living grounds. With regard to the representations made to me on behalf of the general body of civil servants, I would refer the hon. Member to the reply I gave on 2nd April to my hon. Friend the Member for Rusholme (Mr. Radford).

Is it not the case that since that time the cost of living has gone up five points, and when will the Chancellor give consideration to the claims which are being made? When will the point be reached at which he will consider the position?

Representations on the subject are made from time to time, but, as I have explained, the hon. Member is mistaken in thinking that there has been an appeal to me by the sub-postmasters.

If everybody is to have his income made up to meet the increase in the cost of living, will the Chancellor say who is going to pay for the war?

asked the Chancellor of the Exchequer whether his attention has been drawn to the promotion of Civil Service conscientious objectors who were exempted from military service 1914 to 1918 on grounds of conscientious objection over the heads of ex-service men of relative seniority and of admitted Departmental merit; and whether, in view of the present war emergency and the need for the support of the whole community to the war effort, he will reconsider the policy of His Majesty's Government as announced in this House on 12th July, 1938?

As regards the first part of the Question, the selection of a particular individual for promotion is a matter for the head of the Department concerned, in the light of all the relevant circumstances. No preference is given over senior ex-service men of equal efficiency and I see no grounds for altering the decision conveyed by Treasury Circular of 10th September, 1929.

Does the Chancellor of the Exchequer not realise that this circular has completely altered the position, and that men who have not done their duty to their country have been promoted over the heads of the men who have done their duty?

My hon. and gallant Friend will realise that what he is referring to is a question that arose in an individual case 25 years ago, and I think the Treasury regulation was in the circumstances a reasonable one.