asked the Chancellor of the Exchequer whether secondhand jewellery pays the 100 per cent. Purchase Tax?

Yes, Sir, where it forms the subject of a taxable purchase; but many transactions are, of course, not of "a wholesale character."

Is my right hon. Friend aware of the enormous trade which is being done in uncut and unset stones, many of the latter obtained from broken-up second-hand jewellery?

Yes, Sir.

Cannot my right hon. Friend devise some means of taxing these transactions?

It is very difficult.