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Commons Chamber

Volume 139: debated on Monday 14 March 1921

House of Commons

Monday, March 14, 1921

The House met at a Quarter before Three of the Clock, Mr. SPEAKER in the Chair.

Private Business

London County Council (General Powers) Bill (by Order),

Second Reading deferred till Thursday.

PILOTAGE PROVISIONAL ORDERS [No. 2] BILL,

"to confirm certain Pilotage Orders made by the Board of Trade under the Pilotage Act, 1913, relating to pilotage in the Pilotage Districts of Belfast, Coleraine, Londonderry, and Portrush", presented by Sir PHILIP LLOYD-GREAME; read the First time; and referred to the Examiners of Petitions for Private Bills, and to be printed. [Bill 44.]

Oral Answers to Questions

Trade and Commerce

German Trade

asked the President of the Board of Trade what was the value of the total imports to the United Kingdom from Germany and of the total exports from the United Kingdom to Germany during the year 1920; and what was the value of the consignments of the former retained in the United Kingdom?

The total values of the trade of the United Kingdom with Germany during the year 1920, according to the latest information available, were as follow:—

It is to be observed, in connection with the above figures, that during last year Germany's exports to the United Kingdom steadily increased, and that in the last quarter of the year they were more than double the amount of the first quarter and nearly double the British exports to Germany.

What is the basis of valuation for exports from and imports into Germany? Is it the same in each case?

Yes. My hon. Friend has asked this question repeatedly. The mark is really converted into sterling.

The right hon. Gentleman referred to Colonial merchandise. Does he mean that to cover Dominion merchandise also?

I referred to Colonial merchandise. I do not know of any adjective we could use for Dominion merchandise.

May I ask whether, in the opinion of the Government, this trade is highly beneficial to this country?

Coal Industry

Household Supplies, Shortage

asked the Secretary for Mines whether he is aware that in Shildon district, county Durham, there is a shortage of household coal and that the local collieries are only working three days per week; and whether any action can be taken to secure the necessary supplies of coal and, at the same time, reduce the unemployment?

I have received no specific complaints of shortage of house- hold coal at Shildon, but I am aware there is shortage of household coal in certain districts at the present time. The shortage is due, as the Secretary for Mines has already explained in replying to similar questions by other Members, to the accumulation of inferior coals owing to lack of demand. This prevents the raising of better qualities suitable for household use. I am going into the matter with a view to seeing what can be done to remedy the situation.

Transport

Railways Eight Hours' Day

asked the Minister of Transport whether his attention has been called to the unnecessary expense occasioned to the railway companies, now working at a loss, by reason of the eight-hours' day being enforced in respect of all classes of railwaymen irrespective of the work which they perform; and will he take such steps as may be necessary to enable the railway companies to differentiate between heavily-worked men, such as engine-drivers and signalmen in large boxes, on the one hand, and station-masters and porters at country stations on the other, who are not continually employed and who might well work longer than eight hours and thereby save the heavy expense to the railway companies of employing two men to do work which could easily be performed by one man without any hardship or difficulty?

I am, of course, aware that the introduction of the eight-hours' day to railwaymen, granted in 1918, has increased the cost of the working of the railways, and has, I have been informed, necessitated the employment of an extra 22 per cent. additional men "in the operating grades," but the whole question of the wages and conditions of employment of the railwaymen was considered by the National Wages Board in 1920, and it was recommended by 12 out of 13 members of the board, after an exhaustive inquiry, taking into consideration all the relevant factors, including the wages in other comparable employments, that the railway workers of Great Britain were entitled to a very considerable increase in wages. They expressed the view that the settlement put forward ought not to be disturbed for such a period as would facilitate a return to stability of industry and commerce. It must be remembered that by the operation of the sliding scale a very considerable reduction in wages, amounting to several millions of pounds, will shortly be made. I think, however, that if the railway companies take their men into closer conference, and consider these and other matters in detail with them, much good might result, and many anomalies might be removed by conference rather than by complaint.

In view of the fact that the railways are now running at such a heavy loss does not the right hon. Gentleman think it desirable that immediate steps should be taken to rectify a position of affairs which is costing the railways thousands of pounds yearly, if it can be done without hardship to the men?

Is the right hon. Gentleman aware that this House has expressed the opinion repeatedly that there should be an independent authority to consider the wages question, and when the trade union agrees to an independent authority is it in the interest of industrial peace that the action of that authority should be continuously questioned?

I have always upheld the authority of an independent board of this kind subject to the limitations published at the time in regard to its findings. It would be disastrous for either one side or the other to begin to try and upset it.

Do I understand that the railway companies are not discussing future wages, conditions of service, and machinery with the men?

So far as I know—and it is not necessary I should know everything that is being done—they are not discussing future relations with the men. Possibly my right hon. Friend the Member for Derby (Mr. Thomas) is better informed than I am.

Is the right hon. Gentleman aware that the railway industry is the only industry in the country in which provision is made for an automatic reduction of wages based on the cost of living? [HON. MEMBERS: "No."]

I would not like to commit myself to saying it is the only industry in the country, but there is a sliding scale on the railways which, within the next few days, should have the effect of reducing wages by 3s. or 4s. a week, which would be a reduction on the pay bill of either £5,400,000 or £7,200,000, as the case may be.

The point of my question was not a reduction of wages, but the employment of two men to do what could easily be done by one.

The classification of men was arranged in 1918. It was considered in detail by the Wages Board, and the only way in which anomalies, if they exist, can be got rid of is by frank and free conference with the men.

Great Northern Railway of Ireland

asked the Minister of Transport whether he is aware that, notwithstanding the request of the Government to the Great Northern Railway of Ireland to re-instate without victimisation their employés who were suspended in connection with the recent munitions dispute, this railway company still refuses to do so, with the result that a number of men are still unemployed; that this same railway company is receiving large sums of money from the Government under the railway agreement; and, if he has not now the power to compel the company to give effect to the wishes of the Government, as expressed in the undertaking given to the representatives of the employés, will he consider the advisability of introducing legislation in order to strengthen his hands in matters of this kind?

I am aware that the Great Northern Railway of Ireland has not yet reinstated all the men. I have not only written, as I undertook to do, urging the company to reinstate the men, but I have seen the chairman and general manager personally in the matter. I have no power to order either the dismissal or employment of companies' servants, generally speaking.

Will the right hon. Gentleman promise legislation which will compel the company to give effect to the wishes of the Government?

I beg to give notice that on the Motion for Adjournment tonight I will raise this question.

Sports, Reduced Fares

asked the Minister of Transport if he will make representations to the railway companies for a resumption of facilities for cricket and football players to travel to and from playing grounds at reduced fares?

The restoration of such facilities has been left to the commercial discretion of the companies. My own view is that, now that the position with regard to locomotive power and rolling-stock has improved, the companies should make every effort to restore facilities at fares less than the ordinary wherever additional nett earnings can be obtained. Excursions for Easter have been arranged, and other concessions are being considered.

Will this apply to excursions for school children and benevolent societies, and outings of that sort?

It will apply to all excursions coming under the definition laid down of excursions.

Railway Statistics

asked the Minister of Transport what statistics the Great Northern Railway Company can produce of the past and present cost and receipts for the separate service of the conveyance of merchandise and passengers, respectively, conveyance being the only statutory monopoly service possessed by the company, which would enable Parliament to determine what, if any, increase of conveyance charge should be permitted to the Great Northern Railway Company to enable it to operate as a sound commercial undertaking when no longer controlled; if he will state whether he is yet in a position to give the ton mileage cost and receipt, respectively, together with the net receipt for the single service of conveyance of merchandise upon the Great Northern Railway; and whether he has information available which enables him to compare present ton mileage figures of cost and net receipts for conveyance only with any pre-War period?

As my hon. Friend is, I think, aware, the railway companies generally oppose the publication and profess not to compile cost figures which will enable Parliament to judge fully of the justification for increased charging powers. The trading community is, in my judgment, insufficiently alive to the imperative need in their own interest of adequate statistical and cost information of the working of railways.

asked the Minister of Transport whether any returns are being furnished to him of the general merchandise traffic which is now being hauled by road by the railway companies, not being railway traffic collected or delivered; will he state the tonnage, cost, and receipts of traffic so road-hauled by the Lancashire and Yorkshire Railway Company; and what profit or what loss is accruing to the country in consequence?

Timber (Carriage Rates)

asked the Minister of Transport whether he is aware that no agreement has been reached between the Scottish timber trade and the railway companies in regard to a revised scale for the carriage of timber; and whether, in view of the very high rates imposed by his Department, which are strangling the Scottish timber trade, he will alter the classification of home grown timber, or impose a maximum in crease per ton upon its carriage by rail as has been done in the cases of coal and agricultural produce?

As I informed the hon. Member on the 7th instant, the railway companies have met the Scottish home-grown timber trade in conference, and as a result a revised scale of charges for their traffic between stations in Scotland has been quoted, and I am not aware that they have failed to reach agreement. As regards the latter part of the question, I understand that the classification of timber for conveyance by rail is under consideration by the railway companies and the trade generally, and meetings have been held dealing with the subject. The maximum increase per ton which has been placed upon the charge for the conveyance of coal was in accordance with the recommendation of the Rates Advisory Committee. The Committee did not recommend any maximum in the case of timber, and I see no sufficient reason for departing from their recommendation. No maximum has been placed on the rates for carriage of agricultural produce.

Coal Wagons

asked the Minister of Transport whether he is aware that coal merchants still experience great delay in receiving coal and that this delay occurs, not at the collieries, but on the railways, where the coal wagons take, on an average, twice as long in transit as in pre-War days; and, if so, whether this matter can be remedied?

I am not aware that there is delay on the railways in transit of coal; and I cannot accept as correct the allegation in my hon. and gallant Friend's question that coal wagons take, on an average, twice as long in transit as in pre-War days, but I shall be glad to investigate any specific complaints which have been made to the hon. and gallant Member if he will send me particulars. As a matter of fact, the traffic is working very easily now, and if my hon. and gallant Friend knows of any difficulties, I shall be glad to take them up.

Motor Vehicles (Ferry Rates)

asked the Minister of Transport whether his attention has already been drawn to the excessive rates now being charged for the conveyance of motor vehicles on the Queensferry and Granton ferries and to the curtailment of these services; and whether he will at once take steps to have these rates reduced, seeing that as at present imposed they constitute a serious obstacle to trade development in the district?

A number of complaints respecting the rates at present charged on the Queensferry and Granton ferries have been received, and I am in communication with the North British Railway Company in regard to the matter and will inform the hon. Member of the result.

League of Nations

Military Forces

asked the Under-Secretary of State for Foreign Affairs who are the military, naval, and air advisers who recommend what effective force each member of the League of Nations shall supply for warlike operations against any nation which resorts to war; how such effective force is to be paid and under whose immediate orders it will act; whether action was taken under Article XVI of the Covenant of the League, as explained by the official commentary, in the case of the troops despatched, or which but for the Swiss veto would have been despatched, to Vilna; and whether a strong international striking force, ready for instant action in all parts of the world, is to be created for the League, as indicated in the commentary, and by whom such force is to be recruited, paid, and commanded?

In accordance with Article 16 of the Covenant, it would be the duty of the Council to recommend to the Governments concerned what force the members of the League should contribute to the armed forces to be used to protect the Covenants of the League. The general conditions governing the provision and maintenance of an international force which may be required for any special purpose have not yet been determined. The proposal to send an international detachment to Vilna has been abandoned for the present. This, however, is not due to the action of the Swiss Government, who have recently withdrawn their opposition to the passage of the international detachments through Switzerland. There is no present intention to create for the League an international striking force such as that described by my hon. Friend.

When troops are requisitioned in this manner, will they receive special allowances, or will they only receive the pay they previously got from their own Governments?

I think that that question, with regard to British detachments, should be addressed to the Secretary of State for War.

Will the hon. Gentleman give an undertaking that no such detachment will be provided by this country for any operations until this House has had a chance of being consulted as to the cost?

The hon. and gallant Member knows that I cannot give that undertaking.

asked the Prime Minister whether his attention has been called to the fact that the Swiss Government have prohibited the passage through Switzerland of an international force representing the League of Nations which was proceeding to Vilna for the purpose of supervising the plebiscite shortly to be held; whether, under these circumstances, the British Government still consider that Geneva is a suitable place for the offices and executive of the League of Nations; and will he direct the British representatives to propose at the next meeting of the Executive Council of the League that the central offices of the League would be more fitly established in Brussels, as was the desire of the Belgian people and of large numbers of people in Great Britain and the Dominions?

The Swiss Government have, I am happy to say, withdrawn their opposition to the passage through Switzerland of the international detachments which were to proceed to Vilna. The second and third parts of the question do not, therefore arise.

Permanent Commissions

asked the Under-Secretary of State for Foreign Affairs whether a Permanent Commission and a Permanent Court of International Justice have been or will soon be appointed under Articles IX and XIV of the Covenant of the League of Nations; if so, of whom such Court and Commission consist or will consist and by whom the members are or will be paid; whether ha will answer the like question in respect of the Permanent Commission to receive and examine and advise the Council of the League upon the annual reports of mandatories; whether the House will be consulted as to which one of the elder statesmen of experience in affairs is to be appointed under Article XXII for this purpose; and will he explain what is the international civil service assumed in the official commentary on the Covenant to exist, and by whom appointed and paid, and to what strength in respect of staff restricted?

As the answer to this question is rather a long one, I propose, with the hon. Member's permission, to circulate it in the OFFICIAL REPORT.

The following is the answer promised:

A Permanent Advisory Commission on military, naval, and air questions, under Article 9 of the Covenant, was appointed on 19th May last, during the Fifth Session of the Council held at Rome.

The statute for the Permanent Court of International Justice, provided for by Article XIV of the Covenant, was unanimously approved by the Assembly of the League on 13th December, 1920, at Geneva, and the Council are now engaged in obtaining the ratification of the protocol of signature.

The Permanent Advisory Commission on Armaments consists of one military representative, one naval representative, and one air representative from each nation represented on the Council of the League. The ordinary pay and allowances of the officers of the Commission are furnished by their respective Governments. Article III of the Permanent Court of International Justice enacts that it shall consist of 15 members—11 judges and four deputy-judges. This number may be increased by the Assembly upon a proposal of the Council to a total of 15 judges and six deputy-judges. The judges are to receive an annual salary out of the Consolidated Funds of the League.

The Council, on 29th November last, approved the constitution of the Permanent Mandates Commission, which is to consist of nine members, the majority of whom shall be nationals of non-mandatory Powers. As regards appointments to this Commission, I would refer the hon. Member to the Prime Minister's reply on 10th March to the hon. Member for Chelsea (Sir S. Hoare), to which at present I have nothing further to add. The members of the Commission are to receive an allowance of 100 gold francs per day during their meetings, and their travelling expenses will be paid. The expenses of the Commission will be borne by the League of Nations.

The expression "International Civil Service" employed in the official commentary on the Covenant refers to the Permanent Secretariat of the League which is now established at Geneva. The secretaries and staff of the Secretariat are appointed by the Secretary-General, with the approval of the Council, and its expenses are met out of the funds of the League. The responsibility for determining the exact strength of the Secretariat rests with the Council.

asked the Prime Minister whether, at their recent meeting in Paris, the Council of the League of Nations appointed all or any of the following Commissions, whose constitution was on the agenda of the Council, namely: Special Commission to examine amendments to the covenant, Commission on International Blockade, Commission of Inquiry into the deportation of women and children in Western Asia, Commission to examine the registration of treaties under Article 18 of the Covenant, and the Commission to survey the work of the secretariat and the international labour office; and when the composition of these Commissions will be made public?

The Council did decide to appoint Commissions or Committees to deal with the subjects mentioned in the question. I would refer my hon. Friend to the copies of the Council's resolutions, which have been placed in the Library of the House, for such information as is at present available regarding the constitution of these bodies.

Will the expenses of these Commissions be in addition to the Budget of £1,000,000 which the right hon. Gentleman has just mentioned? Does he know what will be the cost of these numerous Commissions?

I should not have thought these Commissions would be very costly. They will be purely Committees of Inquiry and Report. I think they will be well within the figure I mentioned.

Secretariat (Salaries)

asked the Prime Minister what are the total number of employés of the League of Nations; what is the total amount of their salaries; and what is the amount which it is estimated will have to be paid by Great Britain in this respect?

The total number of the employés of the League of Nations Secretariat, including temporary staff, is 363, and their salaries and allowances amount to £194,600 a year. Great Britain makes a lump sum contribution to the general expenses of the League, no particular proportion of which is earmarked for salaries.

Is it possible for the Government to reconsider this large expenditure on the League of Nations with a view to at least some economy?

Are we not spending about ½d. on trying to preserve peace for every pound we spend on preparing for war?

Is it not the contention of the British Government that the British Empire contributes far too large a proportion to the League of Nations?

I should not like to say that. I have only the figure here of the total League Budget of £1,062,000. Great Britain's share is £52,000.

asked the Prime Minister whether during the discussion of the League of Nations Budget some of the Dominion delegates and an Indian delegate declared that they found it difficult to justify to their respective Governments the expenses incurred by the League on account of salaries; and whether the British delegate supported or opposed the Budget?

I would refer my hon. and gallant Friend to the provisional Verbatim Report of the 29th Plenary Meeting of the First Assembly of the League of Nations in which will be found a full discussion of the Budget of the League with special reference to the question of salaries. A copy of the Record will be found in the Library of the House.

Aaland Islands Commission

asked the Prime Minister whether the Commission appointed to visit the Aaland Islands has completed its investigations, and when its Report will be submitted to the Council of the League of Nations; and whether the Report will be published?

It is understood that the Report of the Commission will be submitted to the members of the Council of the League shortly. The question of its publication is a matter for the Council to decide.

Questions

Poppy Cultivation, China

asked the Under-Secretary of State for Foreign Affairs whether the Foreign Office has any and, if so, what information regarding the cultivation of the poppy in the southern provinces of China?

There appears to be an extensive recrudescence of the cultivation of the poppy in the provinces of Fukien and Yünnan, and as the result of the present disordered state of China, many other provinces are also drifting rapidly back to the state of things existing before the opium treaties.

In view of that fact, is there any object, in answers and official communications, in ignoring the fact that the poppy is largely grown in China?

Egypt

asked the Under-Secretary of State for Foreign Affairs whether Lord Allenby will, in conjunction with the Sultan, choose the Egyptian delegates to negotiate with His Majesty's Government; whether the Sultan alone will make this choice or whether he will consult the Egyptian delegation or the Egyptian Legislative Assembly, which body in fact still exists although it has not been allowed to meet since 1914?

It is for the Egyptians themselves to choose the delegation, and the constitutional responsibility for selection rests with the Ministry.

Are we to understand that the Legislative Assembly, which has not met for so long, will be summoned to select this delegation?

I cannot reply to that question. I understand that the delegation is to be chosen by the Ministry.

asked the Under-Secretary of State for Foreign Affairs whether he is aware that in a letter addressed by Lord Allenby to the Sultan of Egypt on 26th February attention is drawn to the spirit of goodwill displayed by His Majesty's Government in making a concession as regards the abolition of a Protectorate in advance of the official negotiations; and whether this implies the formal abolition of the Protectorate or whether the final treaty will contain a clause formally abolishing it?

The reply to the first part of the question is in the affirmative. The way in which a more satisfactory relationship may be substituted for the existing Protectorate remains to be found as the result of negotiations foreshadowed in my reply to the hon. Member for Chester-le-Street (Mr. Lawson) on 3rd instant.

Can the hon. Gentleman give us any information as to when we are likely to have a definite announcement, and does he not think that this delay is one of the chief causes of trouble in Egypt now?

I can assure the hon. Member that there is no avoidable delay, and I shall be happy to make an announcement as soon as we have further information.

Will any pronouncement as to the future government of Egypt be subject to the assent of this House?

I would prefer that my hon. Friend should put that question to the Leader of the House?

Northumberland Shipbuilding Company, Limited

asked the Prime Minister whether the Northumberland Shipbuilding Company, Limited, of which Sir Rowland Hodge was managing director throughout the War, secured a contract from the Admiralty for a number of barges; and, if so, whether he will state what rate of profit they obtained on this contract?

I am informed that this firm was one out of 32 amongst whom an emergency order was distributed in February, 1915, for the construction of a large number of lighters of a special type designed for a particular war operation which were required to be built in an exceedingly short space of time. The terms of the contract were precisely the same for all the firms. The contract was well and punctually carried out, but the Admiralty have no knowledge of the actual profit made by any particular firm.

May I ask whether there is any doubt that this firm received very substantial profits, and whether, therefore, a member of that firm is entitled to receive a great honour in addition?

I will read to the hon. Gentleman what came from the Board of Trade on the subject, namely, that the honour was considered by them to be well deserved for great national services.

Has the right hon. Gentleman now ascertained whether it is a fact, mentioned in connection with this matter, that, when this gentleman was appointed on the Diocesan Conference, that action was actually taken without the knowledge of those who were responsible that this gentleman had been convicted of food hoarding?

On the contrary, as the hon. Gentleman knows, I communicated with the Bishop of Rochester and the Archdeacon and asked their permission to read to the House, if necessary, what they wrote at the time, and they certainly knew of the fact, because their attention was called to it by the hon. Gentleman himself.

Is the right hon. Gentleman aware that two days ago I received a letter from the Bishop of Rochester saying that he was not aware of the fact?

What I have stated about the Bishop of Rochester—and I shall read it to the House if necessary—is that he wrote a letter congratulating him upon the receipt of a well-deserved honour; and there is a letter from the Archdeacon congratulating him especially because he had received it for national services, and not, like a good many people, for party services. I asked permission to read those letters to the House. That was a few days ago, and at that time they were certainly aware of these facts.

Is it not a fact that, in spite of the sending of these congratulatory letters, the episcopal dignitaries of Rochester were unaware that this gentleman had been convicted of a very serious offence in the north of England?

They are perfectly aware of it now, and they gave full permission for these letters to be read to the House.

House of Lords Reform and Devolution

asked the Prime Minister whether, having regard to the advisability of settling the problem of the reform of another place in conjunction with the question of devolution, he will simultaneously with the introduction of proposals to reform another place introduce a Bill to grant self-government to Scotland, Wales, and England?

No, Sir. I cannot undertake to act on the suggestion contained in the question.

Will the reform of another place be entered upon quite independently of the matter of devolution?

Can the right hon. Gentleman say whether, after Easter, he will give a day for the consideration of Mr. Speaker's Report with regard to the question of devolution in Scotland, Wales and England, in view of the fact that the Committee under the presidency of Mr. Speaker sat for a long time, and that the House has never yet had any opportunity of considering its recommendations?

I cannot commit myself, in the absence of the Leader of the House, to any date for discussion.

Are the results of the deliberations of the last Committee, the important Committee presided over by Mr. Speaker, never to be discussed by this House, although the Government itself is committed to the reform of the House of Lords and to devolution?

Russia

Trade Agreement

asked the Prime Minister whether, in any negotiations for a trade agreement with Russia, provision will be made for the payment of the interest which is in arrears upon the various State and municipal bonds guaranteed by the Russian Government?

I have been asked to reply. The terms of the draft agreement proposed by His Majesty's Government; have been published. I cannot add anything to the statement made by me in this House on the 9th March.

Counter Revolutions

asked the Prime Minister whether any assistance in any shape or form is being given by His Majesty's Government or by representatives of His Majesty's Government to the partisans of General Koslovsky or other counter-revolutionaries in Russia?

Is any assistance in any shape or form being supplied by His Majesty's various Oppositions or any of them to Messrs. Lenin and Trotsky or other revolutionaries?

Questions

Electrical Trade Union Dispute

asked the Prime Minister if he is aware that several shopkeepers in the Poplar district, having gone to the expense of wiring their premises and having already paid the necessary deposit for electric current from the Poplar Borough Electricity Department, are being denied that current owing to the action of the Electrical Trade Union, who have given instructions to their members not to lay services or connect up premises on which work has been done by firms or individuals with whom they are in dispute; and, if so, will he say what steps are being taken to put a stop to this state of affairs?

I have been asked to reply. My right hon. Friend sent a communication, dated March 10th, to the hon. Member on this matter. Shortly, in view of the fact that it is being considered by the District Joint Council for Electricity Undertakings for the London area, and that it involves issues which are more properly the subject of legal consideration, he does not consider that the matter is one in which, at any rate at present, he should take action.

Germany and Turkey

asked the Prime Minister whether the Government has any information to show that the German Government had a secret treaty with Turkey in the first week of August, 1914, binding Turkey to enter the War on the German side in the event of war with Great Britain; and whether they have further information to show that the "Goeben" was ordered to Constantinople on 5th August to enforce the conditions of the secret treaty on Turkey should Turkey show any vacillation about declaring war?

His Majesty's Government have no information they can publish on the subject, beyond that contained in document No. 20 of the Greek White Book.

Mesopotamia (Mandate)

asked the Prime Minister why the terms of the draft Mandate for Mesopotamia contain no definite Clause safeguarding the rights of the natives in the ownership of the oils and minerals of that country; and how it is proposed to secure this ownership to the Arab state as part of the administrative arrangements under the Treaty and Mandate?

The Mesopotamian State will succeed automatically to the position of the Ottoman Government in regard to the ownership of minerals, etc., in Mesopotamia. No special provision is required in the Mandate or elsewhere to safeguard this succession.

Does that mean that the arrangement come to provisionally, whereby 25 per cent. of the oil went to France and the remainder to the British Empire, now lapses?

Army and Navy Canteens

asked the Prime Minister how many clubs have been formed with the help of grants made from the profits derived from the Army and Navy canteens; and what proportion of these clubs have been registered for the sale of intoxicating liquors?

My right hon. Friend has asked me to reply. I should be glad if my hon. Friend would address this inquiry to the Organising Secretary of the United Services Fund, 29, Cromwell Road, South Kensington, S.W.7.

Government Departments (Principal Officers)

asked the Prime Minister whether the Government intend to accept the Report of the Committee presided over by the right hon. Member for Paisley; and whether this House would have some opportunity of debating this Report?

The Government has already adopted the Report with effect from the 1st March, 1920, the date from which a general increase in the remuneration of the Civil Service staff took effect. Hon. Members will have an opportunity of discussing the subject, if they desire to do so, on the Consolidated Fund Bill.

Does that mean that the right hon. Gentleman has actually made the increases without the consent of the House of Commons?

What the right hon. Gentleman means is that the decision of a Committee appointed by himself to enquire into this matter takes effect without the approval of the House of Commons?

I shall present Estimates to the House of Commons in Committee. I am surprised that objection to recommendations following the advice of the right hon. Member (Mr. Asquith) should come from the hon. Member.

May I ask, as an ordinary Member of the House who owns allegiance to nobody, whether the right hon. Gentleman, as Chancellor of the Exchequer, in charge of the money of this country, agrees to increases recommended by a Committee without this House first approving, and that he brings that Report to the House of Commons and asks for their approval after the money has been spent?

I could not remain responsible any more than any of my predecessors for the Civil Service unless I could take action in anticipation of Parliamentary approval when it is necessary. I submit the Vote to the House of Commons at the earliest opportunity, and I abide by their decision.

Peace Treaties

Army of Occupation in Germany

asked the Prime Minister whether extra troops have been sent to reinforce the Army of Occupation in Germany under the present policy; what are their numbers; and whether it is expected that more troops will be required?

My right hon. Friend has asked me to reply. The answer to the first part of the question is in the negative. The second part of the question does not therefore arise, and, as regards the third part, it is not possible to make a forecast at the present time.

asked the Prime Minister if he will state what it is anticipated will be the cost to the British Government of the advance into Germany?

The only additional cost is that incurred for the transport from Cologne to Düsseldorf of a squadron of cavalry and a section of tanks.

Customs Barrier, Rhine

asked the Prime Minister what he estimates will be the cost of the maintenance of the Customs barrier on the Rhine; whether the work will be undertaken by the military or civilians; and how the expense will be divided between the French and English Governments?

Pending consideration of the Report, which the Inter-Allied Rhineland High Commission have been asked to render on this matter, I am not in a position to make any statement.

German Reparation

( by Private Notice ) asked the Prime Minister whether all the Allied and Associated Governments have agreed to the deduction of 50 per cent. by their nationals from any payments to be made to Germans; if not, which of the Allied and Associated Governments have refused to take this course or have not yet given their assent; and in which countries has legislation been introduced to give effect to this arrangement?

We have asked those Allied and Associated Powers who are entitled to a share in the German reparations, other than those represented at the recent Conference in London, whether they are prepared to initiate legislation similar to the Bill to be discussed to-day. The telegram to those Powers was sent on Saturday afternoon, and we have as yet no information.

Can my right hon. Friend say that those Powers which were present agreed?

The hon. and gallant Member knows perfectly well what Powers were represented at the Conference.

May we have this information for the purpose of debate: What Power other than France is committed by the Conference, and which Powers are being asked by telegram?

There is no Power committed at all by the Conference. It is committed only by the introduction of a Bill. But they approved of the proposal we made to Germany.

Does the right hon. Gentleman's answer mean that so far, up to the present moment of this afternoon, the only Power which is to be committed by legislation and is taking steps is our own Government?

No. The French Government, I believe, have already taken steps. Count Sforza left only last night, and therefore cannot possibly have taken steps. He is not in Rome yet.

Belgium, Japan, Italy, France, and ourselves were represented at the Conference. The ultimatum delivered to Germany, which included these proposals, was agreed to by all the five Powers.

Ireland

Government of Ireland Act (Transfer of Services)

39, 40, and 41.

asked the Prime Minister (1) whether, when the Parliaments for Northern and Southern Ireland are constituted, it is intended to continue to charge the British Civil Service Estimates with a sum of £89,000 for a Chief Secretary to the Lord Lieutenant of Ireland and with a sum of over £5,000,000 for Irish education, or will the British taxpayer be relieved of these charges;

(2) whether, if a Parliament for Northern Ireland and a Parliament for Southern Ireland or a nominated Assembly are constituted within the. Next few weeks under the terms and with the powers and responsibilities prescribed by the Government of Ireland Act, he will say what amount of the sum of about £18,000,000, which appears in Class 2, Class 3, and Class 4 of the Civil Service Estimates for the financial year ending 31st March, 1922, will, under the provisions of the Government of Ireland Act, not be required or will be transferred to the Irish taxpayer, to the relief of the British Estimates;

(3) whether, under the terms of the Government of Ireland Act, the Parliaments of Northern and Southern Ireland will be responsible for their own criminals and lunatics; and, if so, why the British Civil Service Estimates are charged during the next financial year with a sum of £22,185 for the upkeep of an Irish criminal lunatic asylum?

No appointed day having been fixed as yet for the transfer of Services under the Government of Ireland Act, it is impossible to say for precisely what portion of the year it will be necessary to provide money from the Imperial Exchequer for Irish Services. Estimates for Irish Services for 1921–22 will be presented in each case for a complete year, but when the appointed day has been decided on arrangements will be made to limit the issues from the British Exchequer, which will, at the same time, forgo the corresponding Irish revenue, to such amounts as will be needed to last up to the date of transfer. Reserved Services will continue to be voted by the Imperial Parliament, and defrayed in the first instance from the Imperial Exchequer, but the cost will be recovered from the Irish Exchequers under Section 24 of the Act.

No. My answer began by saying as the appointed day had not been fixed I could not give a definite answer to the rest of the question.

That does not really arise out of the question put to me and should be addressed, if the hon. Member desires to repeat the question, to another Minister.

Land Purchase Bill

asked the Lord Privy Seal whether he can now give the date when the Irish Land Purchase Bill will be introduced?

Can the right hon. Gentleman give us any idea when an English Land Bill of a similar character will be introduced?

Is the right hon. Gentleman aware that he told me last Session that this matter was going to be dealt with pari passu with the Government of Ireland Bill? The Bill was introduced last year. May we take it that it is to be re-introduced this Session?

Had the Chief Secretary been here, I should have been in a better position to answer. If the hon. Member will put a question on Thursday, I shall be in a better position to answer him.

Auxiliary Cadets (Looting Charges)

asked the Chief Secretary for Ireland whether the case of the cadets now under arrest for their conduct at Trim, and which consists in an attack on property, not exceeding in value £120, and does not include any charge of murder, arson, or assault, has received the legal assistance of the Attorney-General or other officials with the view of protecting their reputation and position, or whether they are left to their own legal advisers?

No legal assistance has been given to these cadets by my right hon. Friend the Attorney-General or any other official. The answer to the last part is in the affirmative.

The inquiry which precedes the court-martial has been completed. The date of the court-martial will be fixed at the convenience of the Commander-in-Chief.

Veterinary Inspectors

asked the Chief Secretary whether all temporary service merging into permanent service has been allowed to count for pension purposes in the case of veterinary inspectors of the Ministry of Agriculture who have been superannuated; if it has been agreed that in future all unestablished service of veterinary inspectors of the Ministry of Agriculture shall rank as established service for the purpose of calculating pensions and allowances; and, if so, why are equal terms in this respect not granted to the veterinary inspectors of the Department of Agriculture (Ireland)?

The decisions in regard to the reckoning of temporary service preceding established service in the case of the English and Irish veterinary inspectors respectively were arrived at after full consideration of all the circumstances and with particular reference to the conditions under which the temporary service was rendered, and upon which the officers concerned were placed upon the establishment. The Treasury is not prepared to accord more favourable treatment to the Irish inspectors who have already been granted substantially better terms than those laid down at the time of their establishment.

Does the right hon. Gentleman assert that the inspectors of the Irish Department are absolutely on all fours with those of the English Department as regards their employment?

I never made any such assertion. When the Irish inspectors were established in 1905 they were told that no back time could count. In 1915 a concession was made and they were allowed half back time. Since that date every one who has retired has tried to get better terms than he was promised.

That is not in the question, which deals with the Irish inspectors. Perhaps the hon. Member will put his question on the Paper?

Murders and Outrages

( by Private Notice ) asked the Chief Secretary for Ireland (1) whether, in view of the refusal of the relatives of the three men who were recently murdered in Limerick to give any evidence at the military inquiry and of the general distrust in all such inquiries, the Government will allow a public inquiry in a civilian court to discover the authors of these crimes;

(2) whether the Government have now received any information about the murder of the two men, Laurence Hickey and William Loughnane, and the severe wounding of Denis Regan in the Thurles district, and the attempt to murder another man named William Griffin;

(3) whether the executions that were announced to take place this morning have taken place, and what were the charges on which these executions were based;

(4) can the right hon. Gentleman state the number of lives, civilian and military, that have been lost during the past week in Ireland through acts of violence?

Can the right hon. Gentleman give any information with regard to the policemen and civilians who were murdered in Belfast during the weekend?

In answer to the last question, there were four policemen, I regret to say, who died as the result of the attempted assassination on Friday last in Belfast.

I must have notice of that. In answer to the four Private Notice questions of the hon. Member opposite (Mr. O'Connor), the military inquiry into the circumstances of the Limerick murders has been held in public, and all the relatives of the deceased were invited to attend and give evidence. Their refusal to attend is much regretted, and by none more so than by the local military and police authorities, who are anxious that the imputations which have been made, suggesting that members of the Crown forces were in any way implicated in these crimes, should be subjected to the fullest investigation. The Government see no ground, however, for believing that a fairer or more searching investigation could be obtained by substituting a civilian Court, and to adopt such a course in an area which is under martial law would be contrary to all precedent.

In regard to the second part of the hon. Member's question, I have not yet received the report of the Court of Inquiry, in lieu of inquest, into the deaths of Laurence Hickey and William Loughnane, but, according to the police report, these men were murdered by unknown and disguised men on the night of, the 9th instant, and the other two men mentioned were attacked, apparently, with intent to murder, in the early morning of the following day, their assailants also being disguised and unknown.

As regards the third part of the question, I am informed that the sentence of death passed upon Thomas' Whelan and Patrick Moran, who were convicted of murder, and upon Frank Flood, Patrick Doyle, Thomas Bryan, and Bernard Ryan, who were convicted of waging war against the King, was duly executed this morning at Mount joy Prison.

In reply to the last part of the question, the total number of lives lost through acts of violence during the past week amounts, so far as is known, to 33. Of these, 7 were police and 26 civilians; the latter figure includes any known rebel casualties.

Arising out of the answer to the first question, may I ask the right hon. Gentleman if his attention has been drawn to the speech delivered the other day at the National Liberal Club by Sir John Simon, where he flourished a sheaf of papers and stated that he had signed declarations which left him with no doubt whatever that the murders at Limerick were Committed by uniformed servants of the Crown, and whether under these circumstances he will ask Sir John Simon to submit these statements?

Yes. I did read the statement with amazement, and so did the Colonel Commandant in charge of His Majesty's troops in that martial law area in Ireland. I have not taken any action, and I should have thought it would have been more becoming to an ex-Law Officer of the Crown to have assisted the Government in every way in his power to find the murderers of these people in Limerick rather than making a partisan speech on information that he does not disclose.

In view of the statement that Sir John Simon made, that he had signed declarations that left no doubt in his mind as to the authors of the crime, has the right hon. Gentleman no power by which he can get these declarations from Sir John?

Is the right hon. Gentleman aware that his answer would carry greater weight in the House if he published the Strickland Report?

May I ask the right hon. Gentleman whether the statements attributed to Sir John were not made by the relatives of the murdered man, and whether the best way of setting all such statements at rest is to give such an inquiry as will command the confidence of the public and not an inquiry by a military court which has lost the confidence of the people of Ireland?

In reference to the last part of the question, Limerick is in the martial law area, and a military court in lieu of inquest is the only tribunal that can take evidence and give, I think, a judicial decision in that area. I do not accept the view that these courts have lost the confidence of the people of Ireland. The regrettable thing about this case is that after the Commander-in-Chief had declared the military Court of Inquiry in lieu of inquest open to the public and the Press and after he had invited evidence, the friends of the bereaved persons refused to give evidence.

I should draw quite another deduction from their refusal. In answer to the hon. and gallant Member for Stoke-on-Trent, I have no power to compel an ex-Law Officer of the Crown to assist me in governing Ireland, but I do think that anybody who has evidence, and indeed who sends evidence to me, is assisting in the government of Ireland. I take advantage of everything that comes to hand in this way.

Is the right hon. Gentleman not aware that if Sir John Simon or anybody else has in his possession evidence proving the authorship of a murder and he does not disclose it, he is in law an accessory after the fact?

Has the right hon. Gentleman asked Sir John Simon for these papers, and if not, will he do so?

May I ask the right hon. Gentleman whether he has not any power to call any person who has evidence with regard to these murders?

May I ask the right hon. Gentleman whether four of the young men who were executed this morning were executed on the charge of having taken part in an ambush? [An HON. MEMBER: "Murder!"] Ambush, I said, but an hon. Member says "murder." May I ask the right hon. Gentleman to reply both to my hon. Friend and to myself by telling us whether any person in the ambuscade in which these young men were alleged to have taken part was-killed or wounded among the forces of the Crown?

One of the attackers was wounded, and subsequently died, as a result of this ambush, but none of the forces of the Crown suffered casualties as a result of the ambush.

In view of the statement that the right hon. Gentleman is anxious to receive evidence, may I bring to his notice a letter that I have received this morning from a reliable authority stating that Cadet Hart, who was convicted of murder though supposed to be insane, is now wandering at large in the county of Cork?

India

Divorce Decrees

asked the Prime Minister whether his attention has been called to a recent decision of the President of the Probate, Divorce, and Admiralty Division of the High Court of Justice, which decides that decrees for the dissolution of marriages granted by the courts in India in the case of persons resident in India who had an English domicile are invalid; whether he is aware that this decision will make illegitimate the children of hundreds of second marriages in the cases of persons with an English domicile who have been divorced in India since 1869; and what action the Government propose to take in the matter?

asked the Prime Minister whether the Judgment of the President of the Probate and Divorce Court deciding that decrees granted by the courts in India dissolving marriages contracted in India between residents in that country possessing an English domicile are invalid has been brought under his notice; and whether, in view of the serious resulting consequences, early legislation is contemplated?

I have been asked to answer these questions. I am aware of the judgment referred to, and of its consequences, and I understand that legislation upon the matter may shortly be expected.

Railway Goods Rates

asked the Secretary of State for India whether the Government of India contemplates raising five and a half crores of rupees of revenue by means of a surcharge on the existing scale of goods rates on railways; and whether he is aware that this method is open to the objection that while it may lead to a falling off in traffic it will bring in no additional revenue to the railways, who have to provide for a continually increasing expenditure, as well as for renewals and betterments, which, owing to the War, have unavoidably remained in abeyance, and that the alternative course of raising rates and fares would at once provide the State and the railways with the necessary addition to their resources without the discouragement to the inflow of capital, British and Indian, into Indian railway investments which is likely to follow the adoption of the surcharge policy.

The answer to the first part of the question is in the affirmative. I recognise the objections to the tax to which my hon. Friend refers, and for this reason the increase in the surcharge is intended to be temporary only pending a revision of the rates, which will be effected as soon as practicable.

Questions

Civil Service (Whitley Council)

asked the Lord Privy Seal if the Government are prepared to add to the Whitley Councils in the civil departments a proportion of Members representing this House, who can more properly represent the taxpaying public than the high officials who themselves benefit by the awards of the councils?

The question of appointing to the official sides of Whitley Councils in the Civil Service Members of Parliament or other persons who are not members of the Civil Service was carefully considered, but it was decided that such a course was not desirable. I am not aware of any agreement on a Whitley Council having benefited the high officials referred to in the latter part of my right hon. Friend's question.

How can the right hon. Gentleman say that no benefit has been brought to the higher officials when sums of £750 and £500 are added to their salaries by the report of this Whitley Council?

I think the right hon. Gentleman is wrong in saying that these sums are added by the report of the Whitley Council. It is done by the direct action of the Government.

Am I to understand that these sums added to the higher salaries by way of bonds were not recommended by the Whitley Council, but were added upon the sole authority of the Government?

My right hon. Friend and the House knows that all questions connected with the salaries of Civil servants are always in the hands of the Treasury, whose responsible Minister is the Chancellor of the Exchequer. If afterwards the House of Commons chooses to sanction his action they have a perfect right to do so; but the responsibility for adjudicating on all these matters has always been the responsibility of the Treasury, and the Chancellor of the Exchequer is responsible to the House of Commons.

I did not ask a question in regard to salaries. I asked a question in regard to bonuses. We were told that these bonuses were settled throughout by the recommendations of the Whitley Council, and for the first time am I to understand that the bonuses in the case of the higher officials were not settled by the Whitley Council, but by the exclusive action of the Government.

I think my right hon. Friend knows that this whole matter has been debated, and the question of the higher salaries will no doubt be raised on the Estimates.

Nurses' National Fund

asked the Lord Privy Seal whether the Government have any control over the administration of the nation's fund for nurses; whether he is aware that, although one of the main objects of the fund is for the benefit of present nurses who are in precarious circumstances owing to after-war conditions or are suffering ill-health as a result of war strain, out of a total of nearly £150,000 only £2,144 has been applied to this purpose, whilst nearly £40,000 has been given to the College of Nursing; and whether inquiries can be made into the administration of this fund?

The answer to the first part of the question is in the negative. I have no knowledge as to the manner in which the funds of the Charity have been applied, and I would suggest that the hon. Member should place himself in communication with the Charity Commissioners.

Is the right hon. Gentleman aware that the statements upon which this question is based and the circular addressed to Members were issued by ill-disposed people, who were chagrined that this splendid fund was originated by others, and not by themselves?

Workmen's Compensation

asked the Lord Privy Seal whether he is aware that a Departmental Committee recently made recommendations for alterations of the law relating to workmen's compensation; and whether, in view of the fact that this question has never been one of political controversy and that any Bill brought forward could be referred to a Standing Committee at present unoccupied, the Government will reconsider its decision not to bring forward a comprehensive amending Bill this Session?

I can add nothing to the answer given on behalf of the Home Secretary on the 17th February, in reply to a question by the hon. Member for Normanton.

Government Staffs and Offices

Ministry of Agriculture

asked the Minister of Agriculture the number of persons, distinguishing between those temporary and permanent, employed by the Ministry of Agriculture in Wales and Monmouth shire on 31st January, 1921, stating also the number of officials receiving a salary exceeding £250 per annum, and the total amount of salaries, bonuses, and allowances for the current year?

The number of whole-time officers employed by the Ministry in Wales and Monmouthshire on the 31st January, 1921, was 64, of whom 26 were permanent and 38 were temporary. If bonus is included, there are 24 permanent and 21 temporary officers in receipt of salaries exceeding £250 per annum. The total amount of salaries and bonuses for the current year paid to these officers is £25,472. In addition to the above there were 88 part-time officers employed at a cost for the current year of £7,287.

Can the hon. Gentleman say whether there is any intention on the part of the Ministry to reduce this swollen staff?

Palace Chambers

asked the First Commissioner of Works whether it is proposed to vacate the premises now occupied by the Ministry of Food at Palace Chambers when that Ministry is wound up or whether the premises in question will be taken over, by some other Government Department; and, if so, by which Department?

The evacuation of the premises in question will commence next month and they will be entirely vacated by the end of August at the latest. There is no intention of utilising the accommodation for any other-Government staffs.

Questions

Allotments

asked the Minister of Agriculture whether, on 3rd February, allotment holders at Marlborough Lane, Bath, received from the Bath city council notice to quit on 25th March; whether the council in the same letter also informed the holders that the tenancy would be renewed from the date of the expiration of the notice upon payment of a rent increased to £12 per acre; whether the allotment holders accepted this rent, though regarded as excessive for land previously used as a rubbish tip; whether the council propose now to evict the holders and convert the laud into tennis courts; whether financial assistance is being given by the Government for this purpose and, if so, under what circumstances; whether these holders, if removed, will be entitled to compensation for disturbance in respect of the value of the land to them for one year; and what authority will meet these claims under the Agriculture Act, 1920?

The Ministry has not yet been able to obtain the views of the Bath City Council in this matter, but, from correspondence which has been received from one of the allotment holders, it would appear that the land in question was utilised for allotments by the Council under paragraph 6 of Regulation 2L of the Defence of the Realm Regulations. Apparently, the Council now intend to utilise the land for the, purpose for which it was acquired, and the Ministry cannot undertake to interfere with the Council's decision. No financial assistance is being given by the Ministry towards the conversion of the land into tennis courts, and, having regard to Section 10 (7) ( e ) of the Agriculture Act, 1920, the allotment holders would not appear to be entitled to compensation for disturbance. The last part of the question does not, therefore, arise.

asked the Minister of Agriculture whether, on 11th May, 1920, a petition was presented to the Acton Urban District Council bearing the signatures of 1,165 persons who desired land for allotments; whether the Council have had the offer of suitable land on the Gunnersbury estate at £5 IDs. per acre; whether a claim for £500 compensation has been made in respect of this land; whether the Council state that the rent they would charge to the allotment holders would be, approximately, 42s. per 10 rods or £33 12s. per acre; whether, by spreading the compensation over the period of 14 years, it would be possible to provide this land for allotments at a rent considerably less than that mentioned; and whether, in view of the urgency of this case, he will have an immediate investigation into the demand for allotments in Acton with a view to definite steps being taken to acquire this land, by voluntary arrangement or compulsory order, before 25th March, 1921?

Yes, Sir. Immediate inquiry will be made into all the matters referred to by the hon. Member and the result communicated to him.

Ejection, Ongar

asked the Minister of Agriculture whether a certificate for possession of a cottage occupied by James Law, Water End Farm, Ongar, Essex, has been granted by the county agricultural committee; if so, whether he will state the date of same; whether following eviction the house has remained unoccupied, together with another adjoining; and whether the committee has delegated its powers to the chairman and secretary, who issue certificates without adequate inquiry?

I am not aware whether the facts are as stated in the question. The Ministry has no jurisdiction over a county agricultural committee in regard to this matter, but I will cause inquiries to be made, and communicate the result to the hon. Member.

Ministry of Munitions (Report)

asked the Parliamentary Secretary to the Ministry of Munitions if a book is being compiled to show the work of the Ministry during the War; if so, if this will be issued at the public expense; and what is the estimated cost?

I would refer my hon. Friend to the answer given on this subject on 28th July last to the hon. Member for Kincardine. It is expected that the expenditure will be well within the amount already sanctioned.

The amount already sanctioned was £18,000. This is not a popular history, but an official and technical report of the experience gained in the Ministry of Munitions since its inception, in order that it may be available in any future emergency. It was ordered by the Minister in 1915.

Unemployment

Domestic Service

asked the Minister of Labour whether, under the new Insurance Act, domestic service is considered a suitable employment for a woman who, prior to the War, was in domestic service?

Domestic service would, in general, be regarded as suitable employment for a woman who, prior to the War, was in domestic service.

Is it not a fact that there are a considerable number of women who were previously in domestic service, who went into munitions service, and who at the present time are receiving out-of-work donation?

I do not know whether the hon. and gallant Member has had an opportunity of examining the Regulations that have recently been issued, in which he will find a provision dealing with this point. If he has not had an opportunity of examining these Regulations, I shall be glad to send him a copy.

The answer of the hon. Member is very satisfactory. May I take it that this point is precisely met, and in future there will be no doubt upon the matter?

I do not know what emphasis the hon. Member lays upon the word "precisely," but I think the point is covered by the Regulations.

Dressmakers and Milliners

asked the Minister of Labour the number of dressmakers and milliners at present unemployed; and what is the number registered at labour exchanges for unemployment?

I have no information as to the total number of dressmakers and milliners unemployed, but at the 4th February, the latest date for which the figures for each industry analysed to show each occupation are available, there were 10,755 dressmakers and 1,886 milliners on the women's and girls' live registers of the employment exchanges.

Questions

Victoria and Albert Museum

asked the President of the Board of Education whether he is aware that collections bequeathed to the Victoria and Albert Museum by the late Mr. John Sheepshanks, the late Mr. Ionides, the late Reverend W. Dyce, the late Mr. John Forster, and other generous benefactors are not exhibited at present; and, if so, what steps will he take to reinstate them on view in the museum?

No one can regret more than I do that these collections are not exhibited. The Sheepshanks Galleries are undergoing re-decoration and repair, and steps are being taken to restore the galleries formerly occupied by the other collections to their proper uses. I hope that the collections will be on view again at an early date.

asked the President of the Board, of Education whether he is aware that the collection of French furniture of the 17th and 18th centuries and other rare and priceless objects of art bequeathed by the late Mr. John Jones to the nation has not been on view to the public for nine years at least; and, if so, when are the terms of the bequest to be fulfilled?

The galleries for the exhibition of the Jones Collection require re-decoration and repair. I hope that this work will be put in hand very shortly. As soon as it is completed, arrangements will be made for the exhibition of the collection.

asked the President of the Board of Education whether he is aware that the holding temporary exhibitions in the Victoria and Albert Museum largely encroaches upon space in the museum and militates against the classification, arrangement, and exhibition of the magnificent permanent collections; and, if so, can he see his way to suspending these temporary exhibitions in order that the due display of the permanent collections may be taken in hand?

The temporary exhibitions which have been held at the museum in the past have been held in the North Court, which is specially reserved, for the purpose, and have not been of such a nature as to affect prejudicially the classification, arrangement and exhibition of the permanent collections. It is true that the Franco-British Exhibition now being held occupies not only the North Court, but the South Court and its Cloisters also; but I think that the singular beauty and importance of that exhibition, which has already attracted over 130,000 visitors, amply justifies that slight delay in the restoration of the South Court and its Cloisters to their proper purpose.

Is this Loan Exhibition which is now going on and which is of undoubted value one of a series which will shut out these permanent collections, and is it the policy of the Department to continue these Loan Exhibitions to the detriment of the public who wish to see these other magnificent collections? Further, is there now a rumour that many of these Exhibitions which are thus held are for sale purposes—I do not suggest that that is the case with the present Exhibition—and that the Government know that they are for sale purposes?

It is the policy of the Government to have Loan Exhibitions from time to time in the north court which is specially allocated for that purpose. The present Franco-British Exhibition of textile articles, for which we are indebted to the generosity of the French Government, has been allowed to extend over other galleries as well. This is not to be taken as a precedent. With regard to the second question of the hon. Member I am not aware of the suspicion referred to nor do I think that there is any foundation for it.

Will the right hon. Gentleman see, when these galleries are restored to their pre-War purpose, that the lighting of the smaller galleries is more efficiently done than at present? I would direct his attention to those galleries in which the collection of medals is placed so that the public can have an opportunity of seeing what a fine collection it is.

I shall be glad to consider the matter pointed out by my hon. Friend, but I would call his attention to the fact that our French guests who have gone to the Exhibition in the Victoria and Albert Museum to see the Franco-British collection of textile articles were very much struck by the beauty of the lighting.

Will the right hon. Gentleman be satisfied on the point if I say that I have been there quite often and have not been able to see these collections owing to the darkness?

Is the right hon. Gentleman aware that the Jones Collection was not on view for three years before the War?

I am sorry to say that the Jones Collection was not on public view because of the unsatisfactory state of the galleries, but anybody who wished to see the collection could have access to it

Bathing Dresses

asked the Minister of Health if the circular to local authorities on the subject of the size of bathing dresses sent out by his Department was issued on the ground of public health or public morality; and whether, in view of the criticisms of modern dress, generally, made by distinguished ecclesiastical and medical persons on the ground of morals and health, respectively, it is his intention to circularise local authorities on the whole subject?

This question is doubtless based upon a paragraph in a London newspaper a few days ago, which appears to have been misled by an imaginative local correspondent. The statements regarding the Ministry of Health are in every case entirely inaccurate. The Ministry of Health has sent no circular whatever to seaside towns suggesting bye-laws relating to bathing dress. What actually happened was this: The Rural District Council of the Isle of Thanet submitted bye-laws to the Ministry in the ordinary way for approval. One of the bye-laws proposed by the District Council suggested that every person above ten years of age, whilst bathing, should wear a costume reaching from the shoulders to within three inches of the knee. What the Ministry of Health did was to delete the words "reaching from the shoulders to within three inches of the knee." The Ministry, therefore, in both respects has acted in exactly the opposite way from what has been described.

Do I understand that it is not the intention of the right hon. Gentleman or the Government to interfere with women's dress, whether it be decent or indecent?

I can assure the right hon. Baronet that I should never be so stupid as to dream of issuing a circular on this subject.

Housing

Building Schemes (South Wales)

asked the Minister of Health whether he is aware of the dissatisfaction felt by local authorities in South Wales with the refusal of his Department to sanction housing contracts; and whether such refusal indicates an intention on the part of the Government to curtail its housing programme?

I regret that it has been necessary in a number of instances to refuse sanction to tenders for housing schemes in South Wales. This refusal has been due to the excessive prices which have been asked.

Is the right hon. Gentleman aware that these local authorities have acquired this land for these building schemes and that the houses are urgently required in these districts?

I am well aware of that, but since August last I have issued instructions that contracts are not to be agreed to above certain figures. Those contracts are above these figures, and I do not intend to sanction them because I think that they are higher than they ought to be.

Naval and Military Pensions and Grants

Devon Regiment (R. T. Bryant)

asked the Minister of Pensions whether R. T. Bryant, who enlisted in the Devon Regiment in 1915, was discharged from the Army in 1919 for the disability of a gunshot wound right arm and forearm, is now an inmate of the mental hospital at Plymouth and is maintained by the Poor Law guardians; whether the guardians, are now claiming the 8s. per week pension awarded to Bryant in respect of his wounds; and whether a medical adviser having decided that the insanity from which Bryant is suffering is not attributable to or aggravated by military service and does not form part of the disability for which he is pensioned is, in the view of the Department, sufficient justification for permitting a man wounded in fighting for his country and drawing a pension from the country to be treated as a pauper?

The facts are as stated. A claim in respect of mental disorder was made on 15th October, 1920, but the Ministry were unable to regard the disability as having been caused by military service, which had terminated 17 months before. It is not, therefore, possible to provide for the man's maintenance out of Ministry funds, but there is the usual right of appeal against the decision.

Questions

Nyasaland (Export Duties)

asked the Secretary of State for the Colonies if his attention has been called to the crippling effect upon the planting industry in Nyasaland of the export tax upon cotton, tobacco, and tea; and whether, in view of the fact that the tax in question is considered, both by the planters in Nyasaland and others, as a breach of the spirit of the undertaking given, with regard to Empire preference, by the Government last year, he will consider the withdrawal of the tax?

The export duties were imposed as the most convenient means of meeting a financial emergency. The Governor has now reported that the necessary revenue can now be provided by alternative forms of taxation, and has accordingly been authorised to announce that the duties will be abolished with effect from the 1st of April next.

Will the hon. Gentleman give sympathetic consideration to the question of returning the tax which was imposed for the first time in January last, in view of the effect of the stranglehold of certain chartered companies and railway companies combined with the export taxes in ruining the small planters, many of them ex-service men?

I will look into that, but of course the country has got to pay its way. The revenue certainly is not large.

Is the hon. Gentleman able to say what is the alternative taxation to this taxation, which is so properly being remitted, as it has proved so disastrous?

I think part of it was indicated by the hon. and gallant Member opposite when he referred to Income Tax; and part of it will be in the nature of a slight raising of the import duties all round up to the limit allowed by the Act.

Kenya

asked the Under-Secretary of State for the Colonies whether he is aware that, notwithstanding the official announcement that the question of racial segregation in Kenya Colony had been left open pending a consideration of the representations of the Government of India on the subject, the Kenya Legislative Council have passed a Public Health Bill containing provisions for the exclusive reservation of lands for separate communities, and that in consequence of this the only remaining member of the Council, Mr. Phadke, has resigned; and whether, seeing that the inclusion of the Clause in question had been deprecated by the Select Committee to whom the Bill had been referred, as well as by the principal medical officer of health of the colony, sanction to the Bill will be withheld pending consideration of the whole subject?

Except for the reports in the local Press, I have no information as to the proceedings in Council on the Public Health Ordinance, or as to the resignation of Mr. Phadke, but the Governor has reported that he has withheld his assent to the Ordinance pending the approval of the Secretary of State. None of the provisions of the Ordinance have, consequently, come into effect, and there is no question of sanctioning the Clauses dealing with community segregation until the general question has been considered and finally decided.

Before coming to any conclusion in this matter will the Secretary of State consider Sir Benjamin Robertson's report and the views of the India Council on the question?

asked the Secretary of State for the Colonies whether he has information that Im Abdul Rasal Visram, the remaining Indian member of the Kenya Legislative Council, and Indian members of other public bodies in the colony have resigned office in protest against the enforcement of the policy of racial segregation at Mombassa?

I understand that Mr. Visram tendered his resignation of his seat on the Legislative Council on 25th November last, in compliance with a resolution passed at a mass meeting of Indians to the effect that, as a protest against the Government's policy of segregation, Indian members of public bodies should resign their appointments. I do not know whether Indian members of other public bodies actually resigned office.

Royal Air Force

Civil Aviation Subsidies

asked the Secretary of State for Air whether, seeing that unless civil aviation subsidies are arranged within the next fortnight it will be almost impossible to start the necessary air services in time for summer flying, he will carry out these arrangements immediately?

I have been asked to reply to this question. The Committee appointed to consider the question of civil aviation subsidies has been sitting almost daily. There will he no avoidable delay in coming to a decision on the subject, as the need for rapid action is fully appreciated. Certain tentative recommendations have been submitted by cable to the Secretary of State for Air, but the main difficulty appears to be the want of public financial support.

Is my right hon. Friend able to assure the House that a decision will be reached and carried out, notwithstanding the fact that the seals of the Air Ministry are wandering about somewhere in the East?

That is so. That will not in any way interfere with a decision being reached, but the main difficulty in this matter must not be forgotten.

Is it not a fact that, owing to the lack of practical support given to commercial aviation, all the Continental mail services are already in the hands of Continental firms?

Airships

asked the Secretary of State for Air whether he can give the House any Memorandum by the Lords of the Admiralty as to the use of airships during the late War, and as to their willingness to do without them in a future war?

I have been asked to reply to this question. The views of the Admiralty on this subject were precisely referred to by the Secretary of State for Air in his speech on 2nd March, in which he stated that the general policy had been decided upon in consultation with that Department. The correspondence is in an inter-departmental form and was circulated to the Cabinet.

Does my right hon. Friend mean that we cannot have any memorandum from the Admiralty on the subject?

In this case the words "in consultation with" are really synonymous with consent. In the question of correspondence, I must ask the permission of the Admiralty.

I hope my right hon. Friend will get that permission. I beg to give notice that I shall raise the question on the Consolidated Fund Bill.

Questions

Home-Grown Wheat Prices

( by Private Notice ) asked the Minister of Agriculture whether he is aware that in some parts of the country nearly 50 per cent. of the corn grown by farmers during the period to which the recent Refund Regulations apply, was not sold to millers; and whether on these amounts the refund can now be claimed?

I am aware that a substantial proportion of the wheat sold in this country is sold in the first instance by farmers to merchants or dealers. In such cases the dealer should make application on the prescribed form to the miller to whom he sold the wheat. It is a matter of honour and good faith that the sums due to farmers shall in due course be passed on by dealers to the actual producers of the wheat. The arrangements made in regard to the price to be paid for home-grown wheat of the 1920 crop relate only to sales, whether by a grower or merchant, to millers of wheat for milling into flour for human consumption, and exclude wheat which is sold for any other purpose.

Business of the House

4.0 P.M.

May I ask the Parliamentary Secretary to the Treasury what business, if any, it is intended to take to-day after the first Order on the Paper, whether we can have more definite information as to the business to be taken between now and the Easter Adjournment, and for what period the House will be allowed to adjourn for Easter?

The Orders to be taken to-day after the first Order will be the Supplementary Estimates for the Post Office and for the Ministry of Munitions, as well as the Report stage of various Votes down on the Paper.

I will answer the right hon. Gentleman with regard to the rest of the business. A good deal depends upon the progress made with the German Separation (Recovery) Bill whether we shall be able to secure the usual Adjournment for Easter. This, however, is the programme of business which we submit to the House. My right hon. Friend has already explained what business we propose to take to-day.

On Tuesday, Army Estimates, Mr. Speaker out of the Chair; Vote A, Vote on Account, and Excess Vote; Supplementary Estimate, Ministry of Munitions Vote, if not already obtained.

Wednesday, Navy Estimates, Mr. Speaker out of the Chair; Votes A and 1; the Committee stage of the German Reparation (Recovery) Bill, if it be taken down here—something will be said on that, subject in the course of the Debate—and, I trust, the Report and Third Reading.

Thursday, Continuation of Votes, if not obtained, and Coal Mines (Decontrol) Bill, Report and Third Reading.

Friday, Supplementary Estimates, War Bonus, and other Supplementaries not already obtained.

Saturday, Supplementary Estimates, Chief Secretary's Vote and other Irish Votes. [HON. MEMBERS: "Saturday?"] I am giving the only way in which we can get through. If it does not meet with the views of the House, I am afraid that we cannot adjourn for Easter. Saturday, Supplementary Estimates, Chief Secretary's Vote and other Irish Votes; Ministries of Munitions and Shipping (Cessation) Bill [ Lords ], Second Reading.

Monday, 21st March, final stages of Supplementary Votes, if any, and Bills.

Tuesday, 22nd March, Consolidated Fund Bill, Second Reading.

Wednesday, 23rd March, Consolidated Fund Bill, Third Reading.

Thursday, 24th March, Lords Amendments, Royal Commission, and Adjournment.

That is the only programme which will enable us to secure the normal adjournment for Easter.

Can the right hon. Gentleman say, in the event of the House adjourning on 24th March, for how long the Adjournment will be?

Can the right hon. Gentleman indicate when the Bill dealing with the collapse of the exchanges will be taken?

That will be taken at the earliest possible moment after the House resumes.

Imprisonment of a Member

Mr. SPEAKER informed the House that he had received the following letter relating to the arrest and imprisonment of a Member:

"The Right Honourable the Speaker,

House of Commons,

London, S.W.1.

10 th March , 1921.

Sir,

I have the honour to report that on the ninth day of March, 1921, Mr. John Joseph Kelly, M.P. for Louth, was arrested under a direction issued by me as Competent Military Authority under the Defence of the Realm Regulations, and was committed to His Majesty's prison, Marlborough Hall.

I have the honour to be,

Sir,

Your obedient servant,

G. F. BOYD,

Competent Military Authority."

Resignation of Sir Courtenay Ilbert

Mr. SPEAKER acquainted the House that he had received a letter from Sir Courtenay Peregrine Ilbert, G.C.B., K.C.S.I., C.I.E., the Clerk of the House, which Mr. SPEAKER read as followeth:—

Speaker's Court,

12th March, 1921.

Sir,

I have the honour to acquaint you that, after 19 years' service in the House of Commons, I find myself compelled, by age and infirmities, to tender my resignation of the office of Clerk of the House. I desire that my resignation should take effect as from the end of this month.

It will be with great regret that I shall close a chapter of my life which has brought me many interesting experiences and many valuable friendships, and I desire to take this opportunity of expressing my gratitude to you, Sir, to the Ministers of the Crown, to the other Members of the House of Commons, and to my colleagues on the staff of the House for the uniform courtesy and kindness which I have received from them during the whole of my term of office.

My last three predecessors were able to say, when leaving office, that they had spent the whole of their official lives in the service of this House. I cannot make that claim.

But my intimate association with legislative work, in this country and in India, has now extended over a period of more than fifty years, and I may perhaps be permitted to say that I have, I believe, longer experience than any man living in the technical work of legislation.

The Parliament which sits at Westminster is the oldest legislature in the world. It has succeeded better than any other legislature in reconciling ancient forms and usages with modern needs. It has been the working model for every other legislature that exists. I feel pride in having been associated, in however modest a capacity, with its legis- lative work, and my earnest prayer is that it may long continue to maintain its dignity and usefulness.

I am, Sir,

Your obedient servant,

C. P. ILBERT.

The Right Honourable the Speaker.

I beg to give notice that to-morrow a Motion will be submitted from this Bench thanking Sir Courtenay Ilbert for his distinguished services to the House.

Orders of the Day

German Reparation (Recovery) Bill

Order for Second Heading read.

I beg to move, "That the Bill be now read a Second time."

As this Bill was presented without either explanation or discussion, other than that which was given in the general Debate on Thursday, I think it will be for the convenience of the House if I rise at once and state the case in favour of it, and give some explanation with regard to its provisions. I am the more anxious to speak at this moment, because, in approaching the consideration of this question, I think it is important in our own interests, important from the point of view of unity among the Allies, and important, perhaps, most of all in view of the state of opinion in Germany and of our possible future action that the complete unanimity on fundamental principles which prevails in this assembly should be recognised on all hands, and that it should not be obscured by any differences on detail or by any doubts or hesitation as to the methods by which our common purpose can best be effected. I hope the House will permit me to recall that unanimity as stated by leaders in the Debate the other day. My right hon. Friend the Member for Miles Platting (Mr. Clynes) stated: upon defeated France; it is not merely that faced with these proposals they did not accept them: it is not merely that the counter-proposals which they made were so ludicrously inadequate as, in the words of my right hon. Friend the Prime Minister, to amount to an additional offence and an exasperation; it is that in the London Conference, and in the proceedings in Germany before that Conference, they challenged—they deliberately challenged—the whole basis of the Treaty of Versailles. The Treaty of Versailles, to which they set their hands, proceeded upon the basis that Germany was guilty of provoking the War. There is no difference of opinion in the world outside Germany as to Germany's guilt, now that the archives have given up their secrets. There is evidence enough in German documents, if the German people read them with an open mind, to convict the late Imperial Government of having deliberately provoked war, and of having deliberately thwarted all efforts to avert it. In the face of that, they challenge the assertion of their responsibility for the War, which is the basis of the whole Treaty of Versailles. Dr Simons said that subject could not be settled by any Treaty or by any document which they might have signed. They are grave and ominous words to any man who attaches any importance to the sanctity of a public document, although he is looking forward to the peace of the world in the coming year. What does it amount to? Nothing more or less than this, that if ever, and whenever, Germany is strong enough to challenge the Treaty of Versailles, it will be no more to her than any scrap of paper in the past, that her signature carries with it no debt of honour that she pledges herself to fulfil, and that if she has the power she will tear it up.

So long as that is the attitude of the German people and the German Government, it is impossible for the Allies to come to an agreement with them, and we the Allies are thrown back upon our own resources for convincing the German Government that we are in earnest, that it is their interest to do honour to their signature, and that if they fail, we will ourselves, and can ourselves, take such measures as may be necessary to enforce their obligations. While Germany chal- lenges the whole basis of the Treaty, while Germany defaults in her obligation, and refuses to carry out her duty, you must have recourse to penalties. Penalties can be of two kinds, and, I think, of two kinds only. There can be military penalties, and there can be economic penalties. On the present occasion the Allies are employing both. My right hon Friend the Member for Peebles (Sir D. Maclean) spoke with great emotion the other day of the new marching armies. I think the words were rather exaggerated to describe the military occupation of a few towns, such as has taken place. But your sanctions must be military or economic. There are no others. So far as we are concerned, we prefer the economic sanctions to the marching of new armies, and since, in the particular matter with which we are dealing, there is an economic default, is not an economic penalty a proper penalty to apply to such a misfeasance? I do not suggest for a moment that measures of compulsion can be taken by any Government without some inconvenience to itself and its own nationals. I do not say you can employ economic measures without some disturbance and impediment to trade. It would be folly to attempt to say so. I want the House to face the facts. Either they want reparation and are prepared to take the measures necessary to obtain it, or they do not care about reparation, and would leave the Germans free to break the Treaty of Versailles, and leave the Germans masters to say what they will do, how much they will fulfil, and what they will not fulfil. Either you want the Treaty or you do not. If you do want it—and every hon. Gentleman except the hon. and gallant Member for Hull (Lieut. Commander Kenworthy) says he does want reparation—

I have quoted statements made by the right hon. Gentleman opposite in the Debate the other day If I need more, I take the Amendment of my hon. and gallant Friend the Member for Newcastle-under-Lyme (Colonel Wedgwood), who declares for reparation in his Amendment. It is idle to confront the Germans, in their present attitude, with a demand for reparation. It is distasteful—I do not say intentionally distasteful—to pretend to our own people that we mean to exact reparation, unless we are prepared to confront the Germans with penalties for refusing to pay, unless we are prepared to take the steps within our power, even at some inconvenience, even though they cause some disturbance to trade, in order to collect that reparation.

With those preliminary observations, I turn to some explanation of the particular provisions of the Bill. Let me, first of all, however, attempt to dispose of a misapprehension, to which I heard expression given in this House the other day, and of which I have seen echoes outside. Some little time back His Majesty's Government announced their intention not to exercise the power which they possessed under Paragraph 18 of Annexe 2 of the Treaty to seize property of German nationals in this country or in British territory. This applied, not only to goods, but to balances with British banks. Let me say at once that this pledge is unaffected by the Bill. When we make a pledge, we keep it. There is no question of the seizure of such goods, and, in particular, there is nothing to affect in any way, in the proposals which we are making to the House, the liberty of German nationals to operate upon their balances in British banks. Having, I hope, removed that misapprehension, I turn to the Bill. The first Clause provides that 50 per cent. of what is due as payment for German goods, or such percentage as the Treasury may prescribe, shall be paid, not to Germany, but to the Treasury through the Customs, on account of German reparation. Clause 2 defines German goods as goods first consigned from Germany, and, secondly, goods consigned from elsewhere, of which less than 25 per cent. of the value is attributable to production outside Germany. It further provides that the Act shall not apply to transhipment goods or goods in transit. Clause 3 contains provisions for ascertaining the value of the goods. It provides that the value of the goods, for the purposes of the Act, is to be the f.o.b. value, but, in the case of goods consigned to Germany to have a process to be performed upon them, the Act is to apply only to the in creased value resulting from that process.

Let me interject here that I am not sure that our words are quite sufficient to secure that result, but that is the only result we wish to obtain, and we shall be prepared to make that clear in the Committee stage of the Bill. In all cases what we take is the German value of the goods. In addition, it is provided in this Clause that when a person would be out of pocket on account of an advance made, because he did not retain the full proceeds of the goods sent here against such advance, he should be allowed to deduct from the sum payable to the Commissioners the amount necessary to prevent his being so out of pocket. Provision is further made for the settlement of disputes as to value and for the furnishing of certificates of origin. By Clause 4 provision is made for persons who have made contracts to accept bills, to apply to the Court for suspension, annulment, or, with the consent of the parties, variation of the contract, when the enforcement of the contract would result in serious hardship in consequence of circumstances arising out of this Act. Clause 5 provides that, on the recommendation of a committee or committees, which are to consist mainly of business and financial men, the Board of Trade may, as respects articles of any class, make or description, reduce the percentage payable to the Commissioners, or vary the percentage referred to Clause 2, and may also extend the classes of contract to which Clause 4 relates. Finally, Clause 6 provides that in the contingency of our arriving at agreement with Germany, then by Resolution of both Houses, the Act may be suspended by Order in Council to such extent and for such periods, definite or indefinite, as may be specified in the Resolution.

May I ask whether this is not the first instance of the House of Lords interfering with a tax?

I do not know whether this would be the first instance of the House of Lords interfering with a tax, if there were a tax in this Bill. But there is not a tax. Therefore that question does not arise. The House has seen that we have deliberately asked for considerable latitude in the administration of this measure. I have said that there must be some inconvenience caused by anything which interferes with the normal and free course of trade. We desire to meet, to the fullest extent, cases of difficulty and hardship, and we are convinced, and the House of Commons will be convinced, that it is impossible to foresee by legislation every case which may arise under such legislation. We ask, therefore, that this discretion shall be given to the Board of Trade to be used on the advice of men specially chosen for their experience of business, and for their knowledge of all the ramifications of British trade and British finance, and of what is required to safeguard British financial and commercial interests.

The effect of the Bill is two-fold. It affords, with the co-operation of the German Government, a method of collecting reparation, measured according to Germany's capacity to pay, if Germany reimburses her exporters. On the other hand, if Germany remains recalcitrant and refuses to co-operate, it acts as a penalty automatically imposed upon German trade in all countries where similar measures are applied. In other words, if Germany co-operates with us under this measure in making the payments required, German trade may proceed practically unhindered, and the German reparation debt may pro tanto be redeemed. If Germany refuses to meet her obligations, then the economic penalty is imposed automatically upon economic default. Assuming the cooperation of Germany and the German Government, which would take the form of reimbursing the German exporter or producer in marks that portion of the purchase price which is withheld by the importing Government, it may be asked what sums are we likely to receive? That depends upon so many uncertain factors that I should not like to pretend to give the House any precise estimate. [An HON. MEMBER: "The Prime Minister."] My right hon. Friend is as cautious as I in this matter. It seems probable, and I think certain, that in that case we could collect within the Empire in any one year the full total of the reparation due to the Empire through the fixed annuities suggested at Paris, as they would be divided under the agreement come to by the different Allies for the distribution of the German reparations. If we can do anything like this it will be a definite measure of reparation from Germany and of relief to the hard-pressed British taxpayer.

Our share, that is the share of the British Empire, of the reparation payable by Germany is 22 per cent. If Germany co-operates in working this scheme—and bear in mind they have every object to do so, for otherwise there will be a penalty—and the German delegates spoke favourably of it as a method of recovering the reparations—if they co-operate in working the scheme, the British Empire could, I believe, collect its share of the fixed annuity due from Germany under the Paris proposals. It may be asked, why should Germany pay? If the British Empire and its allies apply this or a similar scheme, at least 40 per cent., possibly much more than 40 per cent., of the German export trade would be affected. I mean very nearly 40 per cent. of her pre-War trade, and, therefore, much more than 40 per cent. of her present trade. The markets affected were very important to her before the War; they are infinitely more important now. At the present time Russia has ceased to be a market, and owing to the complete disorganisation of everything on which trade and commerce depend which has taken place in that country, it must be many years before the latter can be such a customer for German goods as before the War.

Austria, again, is in a similar plight, and thus is unable to fill any part of the gap left by the withdrawal of trade. Austria cannot possibly pay for the amounts in trade she took from Germany in pre-War years. So large a section of the German trade will be affected by the common action of the Allies that unless they either co-operate in carrying out these measures, or submit in lieu of them measures which can be accepted by, and are acceptable to, the Allies, there will be an economic blockade of Germany sufficiently severe, I think, to bring her to reason. If Germany is unable to face the consequences of a total cessation of trade with so large a part of her market, and reimburses a part, and a part only, of the sum deducted, what will happen? Some hon. Members would appear to think that Germany could make up the difference by increasing her charges to us. I will not say that in no possible case could Germany recover any possible proportion in that way, but I do say that the threat is not of a kind that need disturb our minds. The state of her exchange is such that the price to our consumer of goods at the present time is, generally speaking, the world-price. The effect of the debased German exchange is to allow the German to make excessive profits. Some part of those profits are taken at the present time by the German Government in the form of export duties. Some part is taken by the cartels or unions in the form of enhanced prices for goods for export over those which they sell for internal consumption. The only effect would be that some part of the profits which now go to the German Exchequer or to the individual German manufacturer or cartel would go instead into the Allied Treasuries to make good a portion of the German obligation for reparation.

That is the more so because of the present condition of world trade. For this is not a moment when purchasers are going about eagerly seeking to find somebody ready to sell. There are in regard, to almost every commodity many more sellers than buyers, and if Germany thinks that we cannot do without her goods she is profoundly mistaken. There are other sources of supply open. I have been making further inquiries, and so far as I can see there is no commodity of consequence for which we at the present time are dependent upon Germany except dyes. These were dealt with by the Prime Minister the other day. We have a 12 months' stock, and we have the right to take 25 per cent. of the German production at any time; and if the German production is less than the normal then we have the right to take 25 per cent. of their normal instead of the actual production. A large portion of the factories in which these dyes are produced are in occupied territories. I have been pursuing the inquiry started by my hon. Friend opposite, and I cannot find that there is any matter of substance on which we are largely dependent upon the Germans with the single exception of dyes, and if we are as secure in regard to everything else—as I have just said—as in regard to dyes, the House will see that there is not much occasion, for nervousness on our part.

If Germany refuses to make good to her exporters any part of the price we deduct, the result will be an embargo upon German trade with the Allied countries carrying out the agreement. I have said that that is a policy which no far-sighted German would undertake if it means ruin to him. The only inducement for him to undertake that would be if he thought it would mean ruin to us. In the present state of trade there is no difficulty, none whatever, for us to do without these German goods if the Germans refuse to accept the only conditions on which they can enter our markets.

One more matter, and that is the question of entrepot. What will be the effect of this Bill? Will it be injurious to London in its entrepot trade? No, Sir. As a matter of fact very few goods come here at the present time in transit for other countries. The charges of the Port of London are so heavy that nearly all the goods bought in other countries and financed here pass, not through London, but direct from the country of origin to the country of consumption. That financing is unaffected by the Bill. Not more than 5 per cent of the whole entrepot trade comes through this country, and goods that do come in transit are exempted from the provisions of this Bill. Lastly, if there be any fear that our trade with neutral nations, especially with the neutral nations bordering upon Germany, may be unduly interfered with, let me call attention to the fact that the Bill requires that only 25 per cent. of neutral value should be added in order to make the goods neutral goods for the purposes of this Act and to exempt them from the scope of the Act, and if there be cases where even 25 per cent. would be too high a proportion—I do not think there will be, but if there were—power is given to the Board of Trade, acting on the advice of the Committee, to vary the percentage, on good cause shown.

Would the right hon. Gentleman say exactly what neutral goods and neutral values mean? Take, for instance, goods originating in Holland and coming through Germany, would that make them German goods?

My Noble Friend is speaking of goods not coming first from Germany but coming from a neutral country. Unless those goods contain 75 per cent. or more of German value, they are exempted. It is the German value in the neutral goods which is the measure of their liability to fall within the provisions of this Bill. I am not sure if I have put that point perfectly clearly. Let me put it like this: if 75 per cent. of the value is German the goods are liable—if less than 75 per cent., not liable. In the case of goods sent from this country to undergo a process, then it is only the value of the process, or the additional value added to them in Germany, which is subject to the charge. That is what I I think my Noble Friend was anxious to know.

No; I was anxious about the other point, because I have had some experience in dealing with these things

Are we to understand that what the right hon. Gentleman says means that if there is 75 per cent. or more, it is German; but if there is 74 per cent. or less, it is not German?

That is so. The House will see that the proportion is drawn upon a very generous scale towards neutrals. We wish to cause the minimum of inconvenience so far as that is consistent with securing reparation from Germany.

There is only one other question which will probably be asked, and that is as to the evidence of value. With regard to this we shall follow the proceedings which we are accustomed to follow in other cases where evidence of value is required— primâ facie the invoice value will be accepted, and it would be only questioned in cases where the Customs authorities had reason to think that the invoice value was a forgery or an inaccurate value attached for the purpose of evading the law. I will deal with one other question. I have heard it murmured from the back Benches opposite, which shows that it troubles the minds of some hon. Gentlemen.

They appear to fear that the effect of this Bill will be in some way to stimulate and increase German competition. If we in this country take payment directly through German goods, they say that is replacing British production by German manufactures. If we exclude such goods from this country, they fear that the competi- tion of Germany in neutral markets will increase to a point at which we shall cease to be able to enter successfully into the field. What do they suppose Germany is going to do if there is no reparation? What is the logical conclusion of the argument? Do you mean to say that you cannot get any reparation except at your own cost?

The hon. and gallant Gentleman stands rather in a class by himself. He is not very representative. But he cannot even be consistent with himself. Look at the Amendment he has put down. "The House is determined to obtain just reparation from Germany." That is the preamble of his Amendment, and his objection to the Government Bill is that he says you cannot have reparation except at your own cost. No doubt the hon. and gallant Gentleman, however, can reconcile himself with himself, and it is not necessary for me to attempt to reconcile him, either with himself or with anyone else. What do you suppose is going to happen if there is no reparation? Perhaps the hon. and gallant Gentleman, after another night's reflection, may come to the conclusion that his preamble is wrong, even though his objection to the Government Bill is right, and that we can have reparation without injury. Is there going to be no competition? Germany is going to do a trade anyway, partly supplementary to that of the rest of the world and partly in competition. She will not do more trade because a part of the profits go to pay her just debts; she will not do more trade because we accept part of the purchase price for the payment of reparation. On the contrary, if she is to do her trade she will have to do something that she had never done before and has not even yet done. She will have to tax her people as this House has taxed our people. What are the reasons why there is grossly unfair competition at the present time? It is because the German taxpayer is escaping the burden that had to be put upon the British tax- payer, and which is a greater load than he ought to be bearing. The effect of the reparation will not be to put the British producer under an additional difficulty; it will do something to restore true values and to secure justice and fair play in this competition.

Let me remind the House of something of which my right hon. Friend the Prime Minister reminded the Germans the other day. France alone of our Allies lost during the War 1,400,000 of her citizens, killed. She pays pensions arising from the War to 3,500,000 of her people. The British Empire lost 1,000,000 killed, and pays pensions to 1,700,000. Germany came to us with proposals that all she would offer in satisfaction of her debt for reparation was less than one-third of what either France or we have to find annually for our people and for the dependants of those who died. That cannot be permitted. There can be no re-arrangement until the Germans recognise the debt they owe and set themselves to repair the havoc they have wrought. To leave them under no misapprehension as to the futility of their excuses and delays, I beg the House in their interests, no less than in the interests of the British trader—who wants above all things to be relieved of uncertainty—to take this measure into rapid consideration and to press it through at the earliest possible moment.

I beg to move to leave out the word "now," and at the end of the Question to add the words "upon this day six months."

The right hon. Gentleman commenced his speech by quotations from three leaders of the two recognised Opposition parties and he pleaded for a demonstration in the course of this Debate of the unity and determination that those leaders had expressed that Germany should to the uttermost of her capacity be compelled to make reparation for this war. I hope that in rising to move the rejection of this Bill I shall not be suspected, and that the comparatively email group of Members with whom I act will not be suspected of sympathy with any other principles than that enunciated by the three leaders I have mentioned. I think I have said sufficient in this House, and certainly sufficient outside this House, not to be suspected of any undue solicitude for Germany. For myself I say deliberately that the ill deeds, the agony and the anguish of the War caused by Germany will cause me so long as I live the name of Germany will be an epithet of detestation. But I should like to say that if such statements as the Chancellor of the Exchequer has just made could have been made a few weeks ago, the result of the London Conference would be very different. When I pleaded a few weeks ago for the punishment of the War criminals, the Prime Minister said, "The hon. Member must remember the technical difficulties in the way." When I pleaded for indemnities and reparation, the Prime Minister poured scorn upon the value of the mark, and said that shiploads were of no value. I heard the Prime Minister a few days ago in this House paying compliments to the German people. He spoke of them as a highly educated and highly capable people soddened with despair. These phrases do no good in Germany, among people soddened with the blood of British soldiers; and so far as I am concerned, let me join heartily, if I may, with the leaders whose speeches have been quoted in saying that there is nothing in this Bill which goes a millionth part as far as I think our claim for reparation should go. The aftermath of this War has produced many fantastic situations. We have had the spectacle of the Kaiser safely secluded in Holland, and the Allies, with the League of Nations behind them, dare not attempt his extradition. We have had the spectacle for which, as I said the other day, Gilbert and Sullivan would have given a fortune, of the Allies asking Germany to oblige us by trying her own War criminals!

5.0 P.M.

Now we get this measure and I hope to satisfy the House that a more fantastic, a more useless measure was never presented to Parliament What does it come to? It comes to this, that the Allies, having been deceived and hoodwinked by Germany for over two years on the subject of indemnities, finding now that the German Government will not pay them, has been inspired by the wonderful idea that if the German Government will not pay them, we will ask a handful of German manufacturers and merchants to collect them for us by a deduction of 50 per cent. of the money due to them for exports, without any guarantee at all that they will get one farthing back from the German Government. The Prime Minister in answer to my hon. Friend (Lieut.-Commander Kenworthy) stated that the necessary Acts of Parliament were going to be introduced by our Allies. I shall be in France to-morrow and I shall find out what France is doing.

I have been authorised by the French Government to say that their measure will be laid before the Chamber to-day or to-morrow.

The right hon. Gentleman appears to forget the fact that in order to make this measure effective Germany must also introduce a Bill. Without an Act of the German Parliament, no national of Germany will have any claim on the German Government for the redemption of these Treasury receipts, and does the right hon. Gentleman think for a moment that with the present temper of the German people the Reichstag will pass any such Bill? [HON. MEMBERS: "Yes."] Hon. Members say yes. I know it has been said by the Prime Minister, and it has been repeated by the right hon. Gentleman (Mr. Chamberlain) again to-day, that when Dr. Simons was in London he led the Allies to believe that Germany would not be opposed to this scheme. Dr. Simons has been back some days, and he has made speeches. Has he in any one of them indicated his willingness to adopt this plan? I read his speech on Saturday, and I find him ridiculing the economic monstrosity of even a 12 per cent. tax upon exports. Germany will have nothing to do with this Bill. She will not pass a measure to carry it into effect. How can you expect German merchants and exporters to send us goods here with the knowledge that 50 per cent. of their value is to be deducted, without having any guarantee they will get any of it back? Supposing a German exporter sends a £1,000 worth of goods over here. His profit is £200. All he gets from us is £500, so that he starts by being £300 out of pocket. Let me correct the impression that the Prime Minister felt in explaining the measure. He talks only of German nationals having this claim against the German Government. Whenever you get these goods of German origin through a neutral State it will be the neutral State who will have the claim on the German Government. Do you think any neutral State is going to send goods over here on the off-chance of collecting 50 per cent. of their value from the German Government? I condemn the Bill because it is economically unsound, politically inexpedient and commercially impracticable. If I were in order in submitting an alternative to the House, I should say, drop this tinkering and tampering with trade and make Germany understand, as, she never yet has understood, that she has lost the War. [HON. MEMBERS: "How?"] I will show you how.

There are three gospels in this matter. First, there is the gospel of intimidation. That is the gospel of the Government—the gospel of always going to do things and never doing them. The Prime Minister goes with shining armour and sword in hand to these various Conferences, and when he removes his helmet a copy of the Sermon on the Mount drops out. The right hon. Gentleman the Member for Peebles (Sir D. Maclean) says, "I hate war and the bayonet and the sword, and will have nothing to do with it." That is the gospel of tenderness. "If there must be war," says he, "let the soldiers fight with 8-oz. gloves, and let there be a medical board of referees to see that they do not hit one another too hard, ending up with an international tea fight." There is a third gospel, which I preach without hesitation—the gospel of retribution, rigid, righteous retribution. That gospel will never be carried into effect until Germany has realised the true situation. She will realise it only when you send your soldiers to Berlin, when, you take possession of her customs, her railways, and everything else, and when you impose upon her such terms as she would have imposed upon you had she won. Do not laugh at the mark, do not talk about shiploads of marks, as the Prime Minister did when he said there would not be room enough left on board the ship for either me or my hon. and gallant Friend (Colonel C. Lowther). If there would not be room, I have heard of special boats for the representatives of the nation. The Prime Minister does not realise, and with all respect I do not think the right hon. Gentleman the Chancellor of the Exchequer realises, that the mark to-day at Id. apiece is a jolly fine investment. I do not want anything better. I should like to have a great many thou- sands of pounds worth, so would the Prime Minister, for after having ridiculed the mark he made this statement: He bases his legislation on War-time experience. What were the value of German exports during the War? The Chancellor of the Exchequer himself used this phrase:

There are Clauses in this Bill which would drive any ordinary man of business mad. We are going to take so much per cent.:

Which would they rather risk—losing £300 or £400 out of every £1,000, or taking the chance, without any Act of Parliament of making good their claim upon their Government? I suggest the Bill is preposterous. I always thought trade was reciprocal. But we are going to lose 50 per cent. of our export trade automatically under this arrangement. What is going to happen? I will assume for the moment that the thing works and that all my criticisms are ill-founded. Fifty per cent. is to be deducted by the British purchaser, and it is to be handed over to the Treasury. There will be no exports from this country in respect of that 50 per cent. Do you not think that the German manufacturer will try to get the highest price he can at the present rate of exchange? The right hon. Gentleman is perfectly wrong when he says that world's prices now prevail. I have seen samples to-day from Germany of gloves which can be sold at an exceptionally low price. They are made with cotton which has to be bought in this country. But how are the Germans going to get the money back which they paid for the cotton? Prices will be put up in order to save some of the deduction, and the merchant and the consumer in England will have to pay those extra prices which will go into the British Treasury. Thus, the British Treasury and the British consumer will be paying the indemnity, and no one else. It is a fantastic proposal. It is no good. It will not work. It may have served its purpose by preparing the way for a few bye-elections. [An HON. MEMBER: "And the General Election!"] No, we will have no General Election just now. The right hon. Gentleman said that if the unanimity of this House had been manifest a few weeks ago the results of the London Conference would have been different. I think he was there a little unjust to various sections of this House. I never heard one section disclaim Germany's responsibility to pay whatever we can get out of her.

I do not think I said that. What I said was, that if Germany had realised the unanimity prevailing in this country and amongst the Allies the result of the London Conference would have been different. I was not making any reproach against any section of this House. I agree that all classes have said that Germany must pay.

I can only say that if Germany did not realise it there was something wrong in the Propaganda and Publicity Department of this country. I was going to suggest that the Woolwich Election had something to do with it, but I will not do that now. This I will say, that the psychology of the German is such that nothing will influence his mind other than a demonstration of force. It is a horrible phrase, a horrible state of things, but he does not understand all this finessing, this high economic talk. It has no effect upon him. Germany is told she has lost the War, but she has no evidence of it in a devastated country, and she is at present under not very bad conditions of life, if the truth be known. She is winning the Peace. That is a horrible reflection which everyone should bear in mind, and it can only be counteracted by a great demonstration of force. No one wants to hear again the clash of arms, but we ought to occupy more Rhine towns. Let us march on day by day; let us see something more of their country and while our troops are marching, let us stop all this talk. The troops can march without fighting. I say, let them march on and let the Germans have the experience of a Financial Commission superintending the collection of her revenue, paper marks if you like, or any kind of marks. Collect what you can. That is the only practicable business policy. These are my closing words. Drop all these Bills, all these Conferences, all this talk, and say to Germany, "You provoked the War. By the Treaty of Versailles you have acknowledged your full responsibility for it; give us year by year your obligations to cover the cost of the War. We will not worry you to pay them; you must pay them as you can, but we will keep an eye on you." Let us capitalise the interest on the bonds for five years. They could be placed on the market, and you would find that Germany would be the biggest buyer in the course of a very few years. For all these reasons, and reiterating my hearty agreement with everyone who says that Germany must be made to pay to the uttermost farthing, I beg to move the rejection of this Bill.

I rise to second the Amendment.

I cannot pretend to examine the subject from a technical point of view, but I wish to apply to it such common-sense as I possess. It appears to me we are fundamentally on wrong grounds. It is not for us to suggest to Germany the way in which she should pay. We must insist on her acknowledging her debt. Let her find the means of paying. She knows her own conditions, and it must be for her to apply such laws as she has, or introduce any necessary laws to force the money out of her own people, to force them to pay that which we justly and rightly claim as the result of the injury done us by Germany herself. I firmly believe you will force no reparation out of Germany until you get such a stranglehold upon her that she cannot wriggle. I also firmly believe this Bill gives no such strangle-hold. It is not adequate. We must take possession of more towns in Germany and hold her by the throat. Suppose this measure fails, or partially fails, at the end of a year or two. When that time arrives, when the Government realise that the Act has not produced the anticipated results, their chances of getting more out of Germany—their chances of getting anything adequate will be far smaller than they now are. You have your opportunity now. You have your opportunity to march on to Berlin, and to seize whatever other places you may think suitable for your purpose. This Bill does not go far enough, and for that reason, as well as for the reasons advanced by my hon. Friend who moved the rejection, I venture, with all respect, to second his Motion.

I do not propose to follow the speeches we have just heard beyond to say that a great many of us have very long wondered how it is that, with his undoubtedly remarkable financial talent the hon. Mem- ber for South Hackney (Mr. Bottomley) has not already become a multi-millionaire. I think we have a clue to it this afternoon in his remark that the German mark is a very good investment. I only hope that his thousands of readers will not take his financial tip in this instance. I am not going to enter into the details of this Bill. Even if I had the necessary technical knowledge, which I have not, I should feel it would be a very great responsibility under present conditions to deal with this matter in a critical spirit. It might produce a misunderstanding of the British attitude on the part of Germany and might have very disastrous consequences. We all see the obvious disadvantages of the Bill. Those disadvantages are not of our making, and I am sure the country would be prepared to face far greater disadvantages and inconveniences rather than allow the Germans to evade their just liabilities.

I am only rising to ask information on one point. I want to know if the proceeds of this Bill are to be pooled. The Chancellor of the Exchequer told us that, in his opinion, it might be possible to collect the whole of the reparations payable to Great Britain under this system. But suppose we get more than the 22 per cent. to which we are to be entitled. Is the remainder, or is the whole of the sum to be paid into a common fund for the benefit of France, Italy and the other Allies? I believe at Spa it was agreed that Great Britain should receive 22 per cent., France 55 per cent., Italy 10 per cent., and Belgium a small percentage also, I forget the figure. That arrangement was accepted as a fair recognition of the greater devastation which France has suffered, but it does seem to me it would be very unjust to say to a great industrial country like this, that she must apply a pooling arrangement to this case. The penalties will not be necessarily at a uniform rate of 50 per cent.; other countries may charge very much less, and, obviously, it would not be fair wholly to dislocate British trade by a crushing penalty of 50 per cent. while Italy, for example, might go on enjoying free exchange with Germany and at the same time not suffer in her reparation receipts because of the pooling arrangement.

There is a further point in connection with the Bill to which I would like to allude. The money which will have to be raised under this Bill is of a very different kind of payment to that which was contemplated at the time of the Spa agreement, and for this reason. It will not all necessarily be paid by Germany. Unless the German Government recoups the exporter for the tax levied upon his goods, it is pretty certain that the German exporter will recoup himself by raising his prices, and then, instead of it being an export duty paid by Germany, it will approximate an import duty paid by the British consumer. That will not mean necessarily that the policy has failed. It may be that the inconvenience and pressure thrown upon Germany will be so great as to justify the arrangement. It will mean, however, that the money raised will be a form of taxation mainly paid by our own people. In these circumstances I suggest that it would be unfair that the pooling arrangement, applied quite rightly to other reparation payments, should take effect. I do not think there is any difficulty about the fair adjustment of inter-Allied claims. It ought to be provided that, if pooling takes place at all, it shall be limited to the conditions under which Germany is compensating her exporter. It should be made plain that, until she takes this action and gives this compensation—thereby making the penalty an export tax paid by her people—and while the importers in this country continue to pay an undetermined amount of the tax, no pooling will take place. Although this point has not been mentioned, either in the Debate the other day or in the speech of the Chancellor of Exchequer this afternoon, I have no doubt that the Government have thought it out, and I would ask that, to avoid all possible misunderstanding between the Allies, it be made clear in this Debate from the very start that in that case at least, until Germany does consent to faciliate matters and recoup the exporter, no pooling shall take place.

I find myself, on the wide principles of this Bill, in the bad position, which is always so depressing to him who occupies it, of being unable to share the enthusiasm of either party—either that of the right hon. Gentleman the Chancellor of the Exchequer, or that of the hon. Member for Hackney (Mr. Bottomley). As has been so well said by the hon. and gallant Member for Bury St. Edmunds (Lieut.-Colonel Guinness), it would be much to be regretted if any unnecessary words were said to emphasise any difference of opinion or weakness in the front which, is now being created for the imposition of just penalties. I believe however, that it would be a greater danger still if there should be any misapprehension on the part of Members of the House, or on the part of the country at large, as to the great trouble, disturbance and upset that the provisions of this Bill will cause to the industrial, commercial and financial communities. If little is said about it—and little, perhaps, need be said—it is not because those troubles and disturbances will be inconsiderable, but because, by men of patriotic feeling, more stress is laid upon the wider purpose of the Bill than upon their own pains and penalties in assisting to work it. It appears to me that in the first place the Bill is to be welcomed in its general principles if only because it proceeds upon the assumption that there is nothing inherently immoral in trading with Germany. That is an assumption which may be present in the minds of all, but which is not often recognised in public. It proceeds, further, on the assumption—and this emphasises the reasonableness of its principle—that the only way to exact reparation from Germany is by the consignment of goods hither from Germany. For these reasons I think that the Bill exhibits a return to common sense in some quarters, which may be welcomed. In some ways, however, the Bill which has so fair a front has a side that is full of seams in its mechanism. I would ask the House to consider for a moment the nature of the difficulties, the troubles, and the anxieties which the working of the Bill will put upon all those engaged in import trade—and I use those words advisedly, for it will be not only upon those engaged in direct import trade with Germany, but upon those engaged in all import trade.

Let us in the first place consider for a moment the importer of obviously German goods. He has his double payment to make, but the Bill provides him with no notion as to how that second and new payment is to be made. Possibly that is a matter which may be set right in Committee. When he has made his double payment, instead of the ordinary single payment, his troubles are not over, for he is still confronted with the danger of being questioned as to the price which he has paid. The Chancellor of the Exchequer has told us to-day that the invoice price is to be taken primâ facie as the price upon which the double payment is to be made. That, however, is not enough to relieve the business community from just that sort of uncertainty, doubt, and danger in their bargaining which is the most serious of all handicaps to trade. Possibly that also may be set right in Committee, but I would urge upon those responsible for the Bill that, if there is one point in which it can be made a less heavy burden upon the business community in assisting to enforce it, it is by removing all possibility of the invoice price being called in question after the bargain has been made. Then it will be present to the minds of all who have given the Bill a moment's consideration, that round-about trade is going to cause the greatest amount of difficulty and trouble—that is to say, trade in goods exported from Germany through another country. It is not only those who are consciously importing goods with the specified percentage of German value who will be given extra trouble and anxiety by the provisions of the Bill. Everyone importing from a country through which it is possible for goods from Germany to come will be put upon their inquiry. Those who are familiar with the circumstances of trade during the War will know what that means. Before you make your bargain you have always to think, "Is there some possible quantity of German value in the goods which I am buying?" I need not emphasise, either, the difficulty of ascertaining whether a prescribed minimum percentage of German value is in the goods or not. That question is one which has baffled experts, and the only way in which one could protect oneself upon it in some cases would be by getting an anticipatory decision, if it could be obtained, from the Customs authorities. Moreover, it is not only goods which go round about and are re-exported through foreign countries that are going to be a source of difficulty; there is the question of payment for goods. As is well known by those who were working on this matter during the War, payment may be cleared through two or three intermediate credit centres. That will need careful invigilation if the Act is to be enforced, and all this invigilation imposes additional work, additional trouble, and additional anxiety upon the financial community. The Prime Minister spoke optimistically about this work being carried out by the present staff of the Board of Customs. I believe that his optimism as to that was extravagant. During the War it took two additional Ministries to carry out work of this nature—the Ministry of Blockade, watching the actual passing about of goods, and the Restriction of Enemy Credits Department, which watched the clearing of payments. One would be glad to know what circumstance it is that prompts the optimistic idea in the minds of those responsible for the planning of the Bill that this work will be carried out in future without so elaborate an organisation as was undoubtedly found necessary for it in the past.

When one has considered the extra burden of trouble and anxiety cast in that way upon the whole importing community—manufacturers and warehousemen—and upon the whole financial community in clearing payments, there is yet one other consideration to which I would urgently call the attention of those responsible for this Bill. The Bill contains, as far as I have been able to discover, no definition of the word "importer.' Who is an importer? Who is to be considered as the party finally responsible for the payments to the Customs under the Bill? The need for such a definition is a most anxious one. Payments are made in the ordinary course by credit documents, and for the free conduct of trade it is essential that those credit documents should be free from hidden dangers. If the parties who make these payments for German goods, or goods of suspected German origin, by becoming liable on any credit documents, are in any circumstances to be held responsible to the Customs as importers—and very often it is extremely hard to identify any other party as an importer—then there will be imposed just such a secret danger upon the credit document as will make it impossible that it shall be freely marketable and negotiable; and that will impose a very severe handicap upon the conduct of trade. It is not only the direct bill, obviously identifiable as a bill drawn in respect of a German shipment, that will be affected. Unless careful precautions are taken against this danger, all other bills and credit documents which are associated with trade that is even suspected of being possibly German, or including some small percentage of German value, will become subject to the same disadvantages. Unless some safeguard can be introduced against this danger during the further stages of the Bill—and it is difficult to devise such a safeguard—a severe handicap will be added to a large part of the business of the discount market.

If we are to consider the possibility of trade continuing with Germany in spite of this Bill, we must consider both ends—not only the English end but the German end. The Chancellor of the Exchequer developed an argument which had, I believe, a very persuasive effect upon the House. If I did not misunderstand it, it was to the effect that, although this Bill may promote to some extent competition against us by Germany in the markets of the world, yet what would happen if there were no reparation? Would that competition not be even more severe? Undoubtedly, at first sight and so stated, the argument admits of no contradiction, but undoubtedly, also, if you look at it from a very slightly different angle, Germany, whether reparations be exacted from her or not, may be expected, in view of the enormous industry and energy of her people, to continue to produce just as much as ever she can, and it is not by imposing reparation that you will either hinder or promote further production. But what you can do by an ill-advised scheme of reparations is to give an advantage to our competitors in the world's markets, and to force Germany to give them that advantage. This I submit for the most careful consideration of the House when they consider this scheme as anything in the nature of a permanency. It must have the inevitable effect of driving the effort of German supply, and all those advantages which Germany has to give, away from us into the markets of our rivals. It needs no such crude measure on the part of Germany as to refuse to recoup the 50 per cent. which we extract. It can be done in a subtler and easier and a more remote manner. The exporter from Germany would have no idea under this scheme at which rate of exchange he is going to get his marks. It is easy enough for the German Government to saddle him with the exchange risk. Undoubtedly, it will do it. That itself is a very severe handicap against trade with this country. He will have no idea at what time he is going to get his credit. If the German Government keeps him waiting ever so little for his money, it may impose a very severe handicap on trade with this country, although it appears and professes and seems to have accepted in principle the liability to reimburse the whole of the 50 per cent. This disadvantage must inevitably be reflected in increased prices for our buyers.

Against that, the Chancellor of the Exchequer argued with great force that prices are so low owing to the exchange that we can stand a little more and it will do no harm to us. So be it. Absolutely it may be so, but relatively with our competitors it is a serious consideration. The question to consider is not whether we can stand a little more, but whether it will not have the effect of just tipping the balance in favour of some competitor in the United States or elsewhere. It appears that the truth, as it so often does, as to the probable effects of the Bill must lie between the extremists on either side. It will neither paralyse or stop all German trade nor, on the other hand, is it possible to cherish those more hopeful beliefs that it will have no effect upon German trade and pour so many millions for reparations in our coffers. It will, if there is anything in the contention I have advanced and the circumstances which I have explained, impose a very severe burden of trouble and anxiety upon the commercial, financial and industrial community. It will have a constant slight effect in drawing the advantages of trade between Germany and the rest of the world away from those countries that impose the scheme and towards those countries that do not impose it. Neither of these are considerations which we can afford wholly to pass over, at any rate, on this occasion of the Second Reading, in view of the serious trade condition of the country. If I might summarise what appears to me to be the position of one who finds it difficult to share these enthusiasms upon the Bill, it is that it is a powerful weapon as a penalty for the punishment of Germany, that, like most powerful weapons, it is very dangerous to the wielder, that we hope most earnestly and sincerely that it will effect its purpose of compelling Germany to make a voluntary agreement for just reparation; and I for one will place no obstacle, however small, in the way of its use for that purpose, but we are bound to recognise that its possibility for mischief to ourselves is not inconsiderable, and the Bill should continue in operation no single moment longer than is essentially necessary.

There are one or two observations which I think it would be pertinent to make at this stage of the discussion of the measure. Let me say in the first place, if it is necessary to say it, that I endorse and re-echo with all possible emphasis the statement with which the Chancellor of the Exchequer prefaced his speech, that there is absolutely no division of opinion in this House, or so far as I know in the country outside, as to the justice of the claim made against Germany for reparation for the War, which she initiated, and which she conducted by methods hitherto unknown in our civilised history, and which has resulted in the case of all the Allies, not excluding ourselves, but in the case of some such as France and Belgium in particular, in devastation and loss, both material and personal, which no conceivable form of reparation could fully indemnify. There is no doubt or hesitation in the mind of any of us as to the justice and the urgency of pressing that claim. The question is purely one of practicability and expediency and nothing else. I think in approaching it from that point of view it is important to discriminate between two entirely different things, namely, between punitive measures and measures aimed at reparation. I am afraid there is confusion of mind on that subject, I will not say in this House, but outside this House and in the country generally. You might undoubtedly, as a punitive measure, adopt means which would have the effect of excluding German goods entirely from your market. It would be a very foolish thing to do from every point of view. Like most measures of a vindictive kind, it would be found to inflict at least as much harm on those who impose them as on those against whom they were directed. I need not say I acquit the Government of any idea, in promoting this measure, of proceeding on what I may call punitive lines. What I understand them to desire, and what we all desire, is that some practical step should be taken by which the moral and indeed the legal obligations on Germany to make reparation for her misdoings in the past should materialise for the benefit of the Allies.

It is a platitude, but one which cannot too often be repeated, that even now when we are seeking to obtain reparation we should be careful that we do not ask for it in a form which would injure ourselves as much as those for whom it is intended. There is something, I admit, attractive at first sight in the proposal which is embodied in this Bill, but we must look at it in a dispassionate spirit and see what will be its practical consequences and whether it will attain the end which we have in view. That is the whole point to which I want to direct myself and the attention of the House. This is not half so simple a matter as at first sight it appears. The operations of foreign trade in these days are of a very complicated kind. When the German or any other producer—we will take the German by way of illustration—exports goods in pursuance of an order, or a contract, to take them in this country, the process which is gone through is this. He draws a bill in London, not as a rule a bill upon the purchaser, but upon some bank or accepting house with whom the purchaser has credit That bill is then discounted. It may pass through a great many hands. Ultimately it gets into the possession of a holder for value, very likely a bank or other mercantile collecting agency, and when, as is proposed in this measure, you require the importer of the goods to hand over 50 per cent. to the British Exchequer, I agree with the hon. Member who spoke a few moments ago that the word "importer" requires careful definition, such as it has not received in this Bill. Who is the importer?

That should be made perfectly plain, and when you remember that you are dealing with goods, as you are here, which may not come direct from Germany to this country, but may go through a number of different neutral channels before they finally reach their destination, it is of the greatest importance, as I am sure every man of business in the House will agree, that there may be no shadow of doubt as to the complete negotiability of commercial bills. Anything which would make it necessary to inquire in any way as to the origin or the different ingredients or proportionate ingredients of commodities bought and sold would pro tanto have a very bad effect upon the freedom and liquidity of the market. That is one danger that you have to avoid.

6.0 P.M.

Look at the matter from another point of view—the point of view of the German exporter. Here we come to what I really think lies at the root of the practical difficulties of the case. The German exporter will have to consider, in fixing his price, and therefore in drawing the bill which has to be ultimately met here, whether or not his own Government can be relied on to make the 50 per cent. reimbursement. If you had anything like an agreement, or indeed a certain and confident expectation, that the German Government would in all cases, as a matter almost of routine, or certainly as a matter of common practice, make that reimbursement, half the difficulties of the case would be removed. But of course as things now are one cannot feel any such security. I am certain that the German exporter will not feel secure, and having that element of doubt and uncertainty he will be driven by the ordinary impulses to secure himself by putting down a higher price and therefore getting here more than the price with which under normal conditions he would have been content. The Chancellor of the Exchequer told us—and the Prime Minister said the same a few days ago when I was not here—that there are very few classes of commodities for which we are really dependent on Germany. I think he said that dyestuffs and dye materials were almost the only ones that he had been able to find out. I received a letter only this morning which I wilt read to the House. I will not give the name, but it comes from an eminent, long-established firm of booksellers in London, who deal both in English and foreign books. The writer says: to a large part of their import trade, there are these continuous inquiries. All these considerations show how difficult legislation of this kind is, and they make one ask the question, and the House ought to ask it in all seriousness, whether we are going to obtain by this machinery adequate compensation for all the dangers and inconveniences which will be incurred.

The Chancellor of the Exchequer, wisely, did not commit himself to any definite estimate in figures as to what he expected or hoped to reap from this legislation. I confess that, having given as much consideration as I could to the matter, and with such experience and knowledge as I have, I entertain the greatest misgivings whether machinery of this kind, so complicated in its nature, and so easily capable of reacting injuriously upon our own trade, both import and export, will be found to be worth while in the results achieved. I finish as I began by saying that I am a hearty supporter of any practicable proposal for getting reparation, and adequate reparation, from our enemies for the mischief they have done. That is all the more reason why the House should, I will not say suspiciously, but scrupulously and minutely investigate the practical possibility of fruitfulness from any proposal of this kind. I have grave doubt whether it is calculated to give us the results that will be worth while.

The Chancellor of the Exchequer began his speech by saying that the Germans had not paid any indemnity, that they had not tried their criminals, and that they had not reduced their armaments.

I said that they had not fulfilled their obligations. I did not say they had not taken any steps.

They have not fulfilled their obligations. Everybody in this House and in the country are naturally desirous that they should fulfil their obligations in all the three matters to which I have referred, and I regret very much that the Government have wasted so much time, nearly two and a half years, before they have taken strong steps to see that Germany fulfils those obligations. As we are all agreed upon the object which this Bill seeks to secure, namely, that reparation is made by Germany to this country, let us see whether the Bill will carry out that object. I do not believe that it will. I believe that it will send a great deal of our trade through America, and that will have a bad effect upon the American exchange. We do not desire to send money to America; we want America to send money to us. I understand that if America is not a party to this agreement it is almost certain that, in consequence of the great connection there is between German firms in Germany and German firms in America, large quantities of goods will go to America, and will then be re-exported to this country. That will have an extremely bad effect upon the American exchange. How are you going to find out whether or not these goods coming from America are, to the extent of 74 per cent., made in Germany? That will require an army of officials. How on earth can anybody solve that problem unless you have a very large number of people to investigate the arrangements and agreements made between the American firm and the exporting firm? One result will be that a great deal of business will be lost to this country, because men of business will not go to all the trouble of having to pay a certain amount to the Government and having to show all their agreements and having to run the risk of having their contracts and bargains investigated, and having to satisfy a large host of officials that there is only a very small percentage of German work in the article that they have imported. I do not see how anybody is going to find that out. While the goods are in America it will be quite possible for the last person in America to handle them to say that the goods were American, made in America. Somebody might put some particular stamp or mark upon them, signifying that they were made in America.

There is one Clause in the Bill, to which I have always had the strongest objection, and which appears in other Bills, and that is that the Board of Trade, in consultation with a Committee, may give exemptions and licences. That means giving power to a Committee—I do not care whether that Com- mittee is composed of men of business or officials—to grant favours to certain people. That is a growing practice in this House, and I believe it is a very bad one. I sincerely hope that if we are to have this Bill everybody will be treated alike, and that there will be no Committee who will be able to give to a certain person or a certain number of persons privileges which are not given to other people. I should like to ask the Chancellor of the Exchequer another question, and if it has been answered, I apologise for asking it again. There was a question on the Paper to-day, No. 3, which asked how soon this Bill is going to operate. I ask this question because I received the following telegram from a firm in the City: tectionist measure. I think that it is undoubtedly a protectionist measure to a certain extent, but to think that it will take money from Germany and put it into the pockets of the English Government is erroneous. I do not believe that it will do anything of the sort. I believe that it is a step in the wrong direction, a step that will continue the paralysing influence of officials interfering in bargains and contracts, and, with all desire that Germany should be made to pay, I rather agree with the hon. Gentleman opposite that the only way to make Germany pay—and I am afraid it is rather late to do it now—is to take possession of some valuable territory and to keep possession of it until the indemnity is paid. Unless this is done, to my mind, it is absolutely certain we are going to get nothing out of Germany.

In considering this Bill we must have regard to two factors. One is the attitude of the German Government itself. The other is the attitude of the United States and the other neutrals. Both the hon. Member for Norwich (Lieut.-Commander Hilton-Young) and the right hon. Member for Paisley (Mr. Asquith) pointed out if the German Government are hostile to this Bill they can easily divert all their export trade from this country to the United States and other neutrals. There is of course the hope that the German Government may, after all, at last begin to play fair and see that the scheme of the Government Bill is the best way of making a large contribution to what they honestly owe this country. But although the attitude of the German Government is important, the attitude of the United States and other neutrals is quite as important. If the United States were taking part in this scheme, if they were willing to charge 50 per cent. on all German imports brought into the States and devoted the money towards repayment of the Allied-debts to them, then we should be able to put serious pressure on Germany, and again I have some hope that if and when this Bill becomes law the sympathy of America may be secured. I believe that America does realise that parlous condition of Europe. She knows, to use the Prime Minister's words, the gigantic charges Europe has to meet and the economic devastation, and I do think that if the right note is sounded we may get the sympathy of America in carrying out these proposals.

If and when the German Government accept it and are willing to work the scheme, and if we get the sympathy of America, there will be a satisfactory state of affairs, but if we get neither—and it is idle to disregard the possibility of getting neither—we shall have Germany diverting all her exports to America and we shall have America left with the prospect of an industrial and trade alliance with Germany.

Only a few weeks ago I had the threat of an American alliance pressed most strongly by one of the leaders of German industrial opinion. I have felt it my duty to get up to-night to call the attention of the Government to this one point. Though I intend to support the Government, as they are the best judges, does not the policy of this Bill take the risk of industrial Germany forcing the worst parts of American opinion into a trade agreement hostile to us, and making Germany the pivot of their industrial policy. That is why I am glad that the Government have taken power to abrogate this Bill, at very short notice, on a Resolution of the two Houses. It is necessary that pressure should be put upon Germany, and I do not find that anybody else has a better policy to propose than the Bill indicates. It is all very well to talk of marching to Berlin, but it is a question whether that is possible or politic at the present, and what the effect of it would be. It is because I feel that, after all, the only alternative is force, and possibly another war-like threat, that I, as well as other Members, in spite of any fears as to what may be the result of this Bill, feel bound to support the Government.

As the right hon. Gentleman the Member for the City of London said, and rightly said, this is a measure of protection, but it is not even the protection that the business interests of this House would like to see. It is protection in a fog. We are totally ignorant of the conditions which we ought to understand before we legislate on this subject. In the first place we do not know in the least whether the other Allies will pass legislation similar to this. We may find out too late; and we have already seen in the newspapers threats in that direction. Italy, for instance, may find herself unable to put on German goods this 100 per cent. tariff, but I should certainly be the more surprised if Belgium were content to put on this tariff, because obviously if England and France put this heavy tariff on German goods, Belgium would stand to gain very largely if the trade were deflected into her own country and the factories of Belgium, by getting the process of completing German goods, would be developed. We ought to have a much better assurance than we have at present that the rest of our Allies are going to take similar action. Otherwise that Ally that stands outside the scheme stands to benefit enormously by our paralysing the consumers and manufacturers in this country.

Then we are in the dark, as the hon. Gentleman who has just sat down said, as to the attitude that will be taken by the neutrals. All the difference in the world will be made by the attitude taken, not only by America but by such possible competitors as Japan or even India. I do not know whether we are going now to step in and compel the Indian Government to put on this very heavy traiff, but if we do not the attitude of those neutrals will be to flourish on our misfortune and snap up our trade, and unemployment in this country will be made far worse than it is at present. We ought to know something about the attitude of those neutrals, but we know nothing. Another factor which obscures the whole field at the present time is, what attitude is Germany going to take up? We might have had some statement from the Government as to whether Germany has made any promise or suggestion that she would reimburse her exporters the amount of the Treasury receipts given to them by this country. We do not know whether that is so or not. I cannot conceive it possible that she would reimburse the exporters, but in any event if she did reimburse the exporters—and the exporters will not know at what rate of exchange or at what time they are going to get by that reimbursement—they are bound to a certain extent to raise their price against this country, but I cannot conceive that Germany will do anything of the sort.

They have already a million men out of employment. They will have more men out of employment as the result of disturbing their manufacturing industries. But Germany will direct her trade to North America and South America which will benefit by getting German goods cheaper. We are not only in a fog as to the conditions surrounding this Bill but we in this House do not quite appreciate what we are doing, and those who are going to vote for this Bill to-night are voting for it because it hits Germany. That may be a quite satisfactory reason. We want to bring pressure to bear on Germany, but I would remind hon. Members of the effect which it will have on this country. We are not legislating in the interests of Germany or against Germany. We are legislating to affect people in this country and apparently we are legislating because the Prime Minister has just discovered, for the first time after talking on the subject for 20 years on the platform, that we should make the foreigner pay the tax. Year after year he has gone on platforms in this country and ridiculed the idea of making the foreigner pay. We thought he understood that the consumer paid the taxes levied on imports into the country. Not a bit of it. He suddenly discovers a new way of paying for the War.

Of course it was quite unnecessary, to have a war at all in order to make this discovery. We could have put 100 per cent. tariff on German goods before the War if we had denounced the Most Favoured Nation Treaty. Even now we can put it on without a special Bill by merely putting it into the Budget this year, and, if we find that we do not get enough millions out of Germany under this precious Bill to pay the German indemnity or the cost of the War, all we have got to do is to put 100 per cent. tariff on goods coming to us from America or from France—even if you like to make bankrupt France pay for the cost of the War—quite comfortably by the same process. But if it were really possible to make the foreigner pay by putting import duties on in this country, it would have been discovered long ago. We need not have waited for the year 1921 for the Prime Minister of England to make that discovery. Most of the Tariff Reformers in this country have cast that idea altogether. They have decided that you cannot make the foreigner pay for the War, and this proposal takes us back to prehistoric times. It is not quite clear to hon. Members that this is a 100 per cent. tax. They think that it is only 50 per cent., but if the German exporter is not to be paid the amount of these Treasury receipts that we send to Germany, then in order to get the full value of the goods from England he will have to charge the English importer twice as much as he does at the present time. If an hon. Member buys the goods from elsewhere he will find that if the goods come from Germany they will be just as dear when sold here, and the dealer elsewhere will make the profit.

This is a 100 per cent. tax. Anybody looking at this Bill would not guess that there was any tariff at all. They would not imagine that there was any such thing as a tax on the importer mentioned in the Bill. In fact, the Chancellor of the Exchequer has even gone so far in one Clause as to take away the prehistoric rights of this House in dealing with finance, and to say that this duty which is put on cannot be removed unless the House of Lords agree to it. That, I maintain, is obviously a breach of the Parliament Act, and certainly a breach of the whole practice of this House for generations. You are putting on a tariff on German goods. Until this last Conference met, it was understood from the Press, the ordinary medium through which we learn the Government's intentions, that there was to be an export duty levied on all goods that left Germany, and that that export duty was to be the source of our reparations. I would not so much have minded that. If this 50 per cent. had been levied on all goods that left Germany, our competitors would not have scored the advantage that they will score now. Now we are to have, it is true, a 12 per cent. export duty on all goods from Germany, and the unfortunate Allies, already bled white by the War, are to tax themselves to the tune of another 100 per cent., while the neutrals who made colossal profits during the War are to have the benefit of cheap German goods. The position is really this; We have not made up our minds why we trade with Germany at all. Is it imagined by anyone in this House that we buy goods from Germany or sell goods to Germany for the good of Germans? Does not everyone know that we trade with Germany for our good, and that if you are going to obstruct trade with Germany you are doing it to our harm? You will be doing injury to this country and not to Germany.

I would have been quite satisfied if the Prime Minister had said that after a drawn war we would never more trade with Germany. Then we should have known where we were, but now, two years after the War, in a time of colossal unemployment, when the whole situation of the country is worse than it has been for the last fifteen years, he comes forward with this half-and-half measure, interfering with trade just sufficiently to stop any possible chance of the improvement of trade in this country, and without any adequate reason. I think everyone in this House should protest against such a wanton interference with the reconstruction of the trade of the world. I know the Prime Minister will say, "Well, what is your alternative? Germany will not pay, and the only way to make her pay is to hit her in the eye, even if the German head comes back like a punch ball and hits you. We must hit them somewhere in. order to make them move." Surely there are other and better ways than this of getting our indemnity. In the first place, we have got a certain amount of money out of Germany—already £100,000,000 or more. We have part of that in German ships, and the very fact that we have it in German ships means to-day that on the Tyne and the Clyde and the Tees you have masses of unemployed shipbuilders walking the streets. We have also got something out of Germany in the way of real estate in the German Colonies that we have taken over, and we have sold that real estate to British settlers. That has not produced the ill-effect that the importation of German ships has produced. Why? Because the return from our owning the land that the Germans previously owned comes in constantly year after year and is spread over ninety-nine or may be a thousand years, instead of coming in immediately in goods. What we want is something that does not swamp the markets of this country with cheap German goods, but which gives us a yearly and permanent hold on German goods. Where we have taken over German land the people of this country have not been damaged, but where we have taken over German products they have been damaged. Why do we not apply the same thing to Germany now?

Take over ground rents, take over land, take over monopolies, the Kiel Canal, the royalties on the German coal mines and those real estate pieces of Germany, which could be taken by this country without ruining the industry of this country and without seriously disturbing it. Take it over to the amount of the indemnity to which we are justly entitled. We have a perfect right to get from Germany our full quota of what damage they have done to us in the War. The best thing is to get these monopolies so that we do not flood the country with cheap German goods and temporarily throw our people out of employment. What is happening now? The hon. Member who spoke last (Sir W. Pearce) said that the Germans were getting into a close trading alliance with the Americans, and that they might use this, as they undoubtedly will, to develop German-American trade. The Americans have gone over to Germany in great numbers and bought German industries or obtained a controlling interest in them. The Algemeine Elektricitats Geselschaft is a case in point. There are hundreds of other cases where the Americans have gained control of German workers. They have seen that the ownership of land and of mills in Germany, and of the right to exploit other people, is the best way to make money and get reparations out of Germany.

I ask the Prime Minister to take some steps in the same line. The pressure that he could bring to bear is obvious. Germany now is absolutely helpless as long as we have the control of the Rhine. We ought to seek reparations in that form rather than by putting a tax upon the people of this country and calling it reparation got out of Germany. This Bill is a mere saving of the face of the Government. Not even the Prime Minister honestly believes that Germany will pay this reparation. He knows quite well that the consumer in this country will pay this tax. Let us drop the idea of getting reparation in such a way. I am quite confident that this Bill, if it goes through, will in six months time be the most unpopular measure that this Government has ever passed. The interference in industry and commerce, the perpetual interference of officials of the Board of Trade trying to study whether there is 25 per cent. German in goods or not—all that interference will not only destroy the trade of this country but will have an effect upon the Prime Minister's party which he at present hardly perceives. How is it that the right hon. Baronet the Member for the City of London (Sir F. Banbury) opposes this Bill? Because the City of London opposes it? Why do the manufacturers in this House oppose it? Because every manufacturer opposes the Bill. [HON. MEMBERS: "No!"] They seem to be divided at present, but there will not be much division amongst the manufacturers in six months' time. How is it that the workers oppose it? Because they know quite well that unemployment will be increased by reason of this mad experiment; above all, they know that when the German workers are made slaves they bring down the English workers' standard of comfort. You cannot enslave one portion of the human race without driving the workers in all countries down to the same low level.

My hon. and gallant Friend has rendered a real service by his very courageous contribution. He realised that it was not fair to criticise this proposal without setting up an alternative. That alternative is the best justification that this Bill can possibly have. What is it? He says that the Germans must pay, but he asks, "Why collect it in this form? I have a much better way. Why not seize the ground rents in Germany and the royalties and get hold of the land there?" Let us work that out. First of all, of course, it involves an Army of Occupation and a much more ambitious military enterprise than that which my hon. Friend the Member for Hackney (Mr. Bottomley) was very anxious to initiate. It involves an occupation of the whole of Germany, wherever there are rents, wherever there are mines, wherever there are houses and wherever there are forests. You must have complete control of the whole of Germany from the Baltic down to the frontiers of Czecho-Slovakia. Then you collect the rent. I have heard my hon. and gallant Friend denounce officials and the setting up of new departments of bureaucracy. The whole army of the unemployed would not be enough to do this work. Has it ever occurred to him how to do it? He would collect the money in the coin of the country. There is no other way in which the Germans could pay. They would pay in paper marks, and he would have an Army of Occupation of a million or two millions and another army of officials to collect a gigantic quantity of paper marks. That is the alternative to the present Bill.

At any rate what you did collect here would be collected in sterling. It would be something of which you could make some use. Whether great or small, the money will be collected, and there will be no army of officials and no army necessary to put into Germany. In fact, the alternatives to which opponents of the Bill have been driven are the real justification for the Bill itself. My right hon. Friend (Mr. Asquith) is much too old a dialectician to commit himself to any proposed alternative. Having all sorts of doubts he was satisfied to venture on a very tentative and rather timid prediction, but that is as far as he went. He would not commit himself to any alternative. If I may say so, he showed great wisdom in not doing so. My hon. Friend the Member for South Hackney (Mr. Bottomley) has got an alternative. It is not quite as expensive or quite as extravagant as that of the hon. and gallant Member for New-castle-under-Lyme (Colonel Wedgwood). But has he worked it out? He said, "Have nothing to do with taxes at all, it is no use occupying towns on the Rhine, little or great. There is no use setting up Custom houses there. March straight to Berlin." Has he worked out how many soldiers will be required for a march on Berlin—I have seen it worked out—and to protect your lines of communication?

What danger will there be? If the hon. Member had taken the trouble of consulting some of the great soldiers at the disposal of the Allies he would have got his answer. Does he think that an army could march to Berlin without having some safeguard? I am not going to argue so utterly impossible and absurd a proposition. You must safeguard your communications. Anything might happen, and a disaster of the first magnitude might happen if you did not protect your lines of communication; in fact, it would be an incitement to trouble to leave your lines unprotected. That would involve a considerable forge, a force of great magnitude. Has he reckoned up what they would cost?

You could not pay your troops in marks. How many soldiers would you get to go there and receive their pay in marks? Let me follow out this proposal. When you get there, what are you to do? Are you to remain there until you collect the indemnity, or are you going to remain there merely until the Germans accept your terms? That is very important. If you simply remain there until the Germans accept your terms, you come back, it is perfectly true, with a paper arrangement in your pocket, but you have no further advantage whatever. You have got to go again through the whole process of collection. You come away with another Treaty, not this time of Versailles—we will call it a Treaty of Berlin, signed by the Germans—and you have got to begin again the process of collecting. You can only collect in two ways. I defy anyone to find any other method of collecting an indemnity, a debt owing by Germany to be paid in another country. You can collect it in services, or you can collect it in the value of goods. I do not know of any other way. So that after marching your Army to Berlin, after adding a considerable expense to the debt which you have got to collect, you come home and start exactly the same process as we are starting now without going to that expense. If my hon. Friends who put forward these alternative proposals would take the trouble to work them out in practice, they would never bring them forward in the House of Commons. They sound so plausible! All you have got to do is to inarch an army into Germany, collect the woods, and the forests, and the railways, and the mines, go along with your lorries, and bring them all home—it is all very simple!

Again I say that there are only two ways of collecting, and this is one of them. I have looked at all the objections that have been raised in so far as I have heard them, or had notes of them made for me, and I will take some of the objections, or rather some of the possible doubts, that enter into the mind of my right hon. Friend the Member for Paisley. He wanted to know who the importer was. The importer is, so far as we are concerned, the person who clears the goods at the Customs, and he must be responsible for paying. With regard to the books, that is a small matter. The total export of Germany in books, literature, and music is only a decimal of the whole of her exports, and the quantity that comes to this country is so insignificant that it does not really interfere with the total sums. Supposing we come to the conclusion that we would rather do without the German indemnity than without German music, all we have got to do is to act under Clause 5, under which we could say we would rather have the German songs than the German cash. If there is anything which is so absolutely indispensable to us that Germany will not send it, and will hold us up and say, "If you do not give this thing up, no more German music in England," we need not necessarily cry "Kamerad"; we can say, "Well, under Clause 5 you can let in Wagner and Strauss and all of them." Therefore my right hon. Friend the Member for Paisley need not be alarmed that he will not hear the sweet songs of Germany. Take another objection that has been raised, of a more substantial character, that Germany will say in her anger, "We will send you no more goods, and we will bless other lands with the products of our labour; we will send them to America, because America will welcome them. £50,000,000 worth of goods that now come to England, America is thirsting for—"

I have no doubt there are German manufactures that America is literally thirsting for. What is America going to do? First of all, is she going to put her tariff on these goods that come in? It is a fairly high tariff, and there are indications that she is going to put that tariff up. In fact, the high tariff party is in power in Congress, and she will probably put her tariff up, especially because of the exchange in Europe. Very well, she puts her tariff up. These goods are first of all to be carried to America, paying freight and tariff, and according to my right hon. Friend (Sir F. Banbury), who did not show his usual plausible ingenuity, they have got to pass through two or three American hands in order to deceive us. American hands generally like to get profits, and each hand takes something of the goods, so there will be freight, high tariff, profit for the two or three American hands, freight back here, and all to avoid the 50 per cent. that is charged here. It is really too preposterous a supposition for anyone to contemplate—America taking £50,000,000 worth of German goods, not for her own benefit, but in order to reduce her own markets and at the same time swamp us. I will take the other proposition, that Germany will send her goods to neutral countries—the goods you refuse. Does anyone imagine she is not sending as many goods to neutral countries now as neutral countries will take? Of course she is. Her exports last year were £250,000,000, and at pre-War prices that amounts to about £100,000,000. Before the War she was exporting about £400,000,000 worth of goods; that is four times as much as she is exporting now. Why is she not exporting more? It is because the neutral countries will not take the stuff from her. If those countries wanted German goods, Germans would be sending their goods there. Therefore, you may depend upon it that if Germany can cut us in neutral markets now, she will do it; it is her interest to do it, and she is doing it as hard as she possibly can. I will take the other point that has been made—how are you going to find out which is the country of origin? We have done it during the War, and it did not require such as enormous machinery. We used the machinery which we had in the neutral countries, and that is the consular agencies. The Customs authorities report:

"The questions to be decided by, the Consuls in the present instance are not so difficult as those arising during the War, seeing that their attention has to be directed solely to the origin of the goods. If the consular services carry out their duties in this respect as efficiently as during the War, there should be little risk of evasion."

As a matter of fact, you are now tracing the country of origin in connection with the working of Imperial preference. Of course, you can create imaginary difficulties, as many as you like, but the fact of the matter is that commerce adapts itself to a proceeding of this kind, because it is in the interests of everybody to do it. Take the difficulty which has been put about the 75 per cent. They say you must have a most elaborate process of examination of every commodity. Not the least. Goods fall into certain categories. You decide in a very short time which are in the 75 per cent. category and which are in the 70 per cent. category, and there is no doubt at all. You have to get an examination, for instance, as to which category rails made out of German steel in Belgium fall into. You will have to decide that rails are, say, in the 75 per cent. category, or in any other category. I am merely using that as an illustration, and the same thing applies to other goods. You will soon be able to analyse and place in categories the particular kinds of goods, whether they fall within the 75 per cent. category or under the 75 per cent. category, and in a very short time it will be working quite smoothly.

It will be decided in the first instance by the consuls who give the certificates of origin. In a very short time the consuls get to know the people they are dealing with. There are certain people they can in the main trust not to mislead them, and there are others about whom they have to be a little more suspicious. On the whole the consuls find that they can repose confidence in traders, and that the traders will not mislead them; for one reason because it is to their obvious interest not to do so. The moment they mislead them, the moment they defraud, in that case they are placed under the ban of the consular service; they get no assistance, they get every difficulty put in their way. What a trader wants is to do business with as little obstacle as possible. That is really what would happen once you begin a system of this kind. No doubt in the initial stages there will be trouble; but traders and consuls will get to understand each other. Categories will be settled, everything will fall into the natural order, and this system will be a system which will be the ordinary method of conducting business between Germany and this country. The same thing applies to your bills of exchange. Your bill of exchange now is drawn upon the present system. In future it has to be drawn with reference to this Bill, and it can be done.

I hear it said: "Who is to pay?" Germany can do one of three things, and I will take the three things she can do. Up to the present, everybody has assumed she has got to do one of two things. That is not the case. Germany can refund the whole of the one-half; she can honour the Treasury receipt that is given. Everybody agrees that if Germany does that the Bill will work quite smoothly. I will assume that Germany will not do that, in which case the second course that she can adopt is that she can refuse to have anything whatever to do with this Bill, and refuse, either in whole or in part, to honour the Treasury receipt. In that case, I say at once, this Bill operates as a penalty. It will have the, effect of excluding German goods, except such goods as we want. The goods we do not really need will be excluded by the action of Germany. Just think what that means to Germany. It means that Germany will be deprived of £50,000,000 worth of trade with the United Kingdom. It means that Germany will be deprived of her trade with Canada, if Canada chooses to collect her share of the indemnity in this way—I have no right to assume that she will, Canada will decide for herself. It means that Germany will be deprived of her trade with India if India collects her share of the indemnity in this way. German goods are already excluded from Australia and therefore, so far as Australia is concerned, it does not count. She will be deprived of millions worth of trade with France. Even supposing Italy does not come in—and it has been suggested that she will not—and supposing Belgium does not, Germany will be deprived of trade that comas from £70,000,000 or £80,000,000 worth up to £100,000,000 worth with the Allies who put the Bill into operation. How can Germany do that? One half of that is wages. Can Germany deprive her workmen of anything between £30,000,000 and £50,000,000 worth of wages—in sterling? In marks it will be almost incalculable what she deprives herself of. Let hon. Gentlemen who put forward these proposals put themselves in the position of German Ministers who have got to face the German public and the German workmen, who are by no means as convinced of the injustice of the claim of the Allies as some of the employers of labour. If hon. Gentlemen will only look at the meeting held at Dusseldorf yesterday, which was addressed by a distinguished French Socialist, where the German workmen themselves admitted the justice of the claim of France—

No, they are not. The proof of that is the election which took place yesterday, in a purely working-class area of Paris, where those in favour of this proposal and much more drastic proposals were returned by an overwhelming majority. The French workmen are certainly not against it. The second course therefore is a course which penalises Germany to such an extent that I think Germany cannot face it.

What is the third course? What is Germany doing now? It was indicated by my right hon. Friend the Chancellor of the Exchequer that she is producing goods, cheaply, because of the mark and the exchange. She is not putting these goods on the markets at the price at which she produces them or at anything approximating to that price, but she puts up the price just to the level which enables her just to cut the price of every other producer. What happens to the difference? There is a very considerable margin between what Germany produces her goods at and what she sells them at, even now, outside Germany. I am talking of markets outside Germany What does she do? There are two courses which are adopted by the Germans. The German Government is trying to take advantage of the cheapness of production, in order to tax the great industrials, and they are putting an export tax on their goods. So cheap is the production that they are actually putting an export duty upon their own goods in order to draw revenue. It is more or less a farce at the present moment. It does not really afford anything like a fair margin, but the great industrials of Germany are making huge profits. The difference between the price at which they produce and the price which they can get in the markets outside, even when they sell under the cost of production in a country like ours, or in Belgium or France, is so considerable that they are amassing huge profits.

It is not for me to say what Germany will do, but there is a third course which the German Government can take. The German Government can say, "We will not pay 50 per cent., but we will pay such a percentage as will leave the employers, the producers, with quite a fair margin of profit"—they might say 20 per cent. or 30 per cent. That would leave them with a fair margin. What does that mean? That means practically a tax, not upon our importers, not upon our merchants, but on the great rich industrial magnates of Germany, to pay the indemnity and compensation to this country. What is unfair in that? It is a perfectly fair proposition

I have dealt with as many of the practical objections as I possibly can. There is one point which was made in regard to Belgium. Someone said, "Oh, but Belgium will take these goods of Germany in order to complete them, and Bend them across." Belgium cannot. Belgium has got her own problems. Why should she go to Germany and get 75 per cent. of the work done by German workmen in order merely to make a profit of 25 per cent.? The Belgians want to sell the produce of their own labour. They cannot take all this prodigious quantity of goods, and if they could it would be against their interests to do so. I am not going to predict, but there has been a tentative prediction by my right hon. Friend. He does not think this proposal will produce much—I am sure he will be very gratified if his prediction is not realised—I believe it will. If it does not, it will operate as such a penalty upon German trade that Germany will surrender, and make her own arrangements. This is the prediction I make. One of two things—either it will succeed or will operate as such a severe blow to German industry, if Germany refuses to pay 50 per cent., that Germany will come forward and say, "We will put forward this plan." And it is a good plan to take anything that liquidates our claim, for then we shall be able to collect such substantial sums under it, not as a penalty, hut as a permanent arrangement for collecting our indemnity, that it will be in itself satisfactory.

I therefore appeal to the House, representing as it does the very overburdened taxpayer, realising that every week that this is delayed means a loss to the taxpayer, and an increase of his burdens—because unless we begin this operation now it will mean a loss of hundreds of thousands per week, when the machinery comes into operation—to help us to pass this measure through, which is a substitute for force, which is a substitute for the clash of arms, and which is a feasible method of collecting. It is not a resort to violence, it is a business-like expedient which I believe will suit all parties, and will certainly suit Germany if she means to pay her debts.

The Prime Minister paid a tribute to the right hon. Gentleman the Member for the City of London. He paid a tribute to his power of plausible ingenuity. That is a tribute from a master, and is praise indeed. I am bound to say that few things give me more pleasure in this House than listening to the right hon. Gentleman meeting any attack upon his promises. I believe that in the early days, at the end of one of his speeches, I so far forgot all the rules of this House as to clap him, and that, I think, caused a little consternation on this side. He has been dealing with some of the difficulties that will be met in working this Bill, and he is not dismayed by the difficulties. Nobody who knew him and knew his character would expect him to be. The last line of attack I would venture to make upon the right hon. Gentleman would be that of pointing out to him difficulties. If there is one thing in which he is great, it is in overcoming dfficulties, and I think he has thoroughly convinced this House that all the difficulties that are anticipated in working this measure can be met by adequate machinery. He has shown, I think most conclusively, that, under this Bill, it is possible to set up in this country the most complete machinery for working Protection that could be devised in any part of the world. That is just our apprehension, and I am quite sure that we cannot do better than explicitly state it.

I think it was the Chancellor of the Exchequer, in his speech earlier this evening, who asked us to have the courage to say what we thought. I want to take the courage of saying that what we anticipate—and I think we have it conclusively shown to us by the Prime Minister as the result of this Bill—is the establishment in this country of a full-blown, fully-equipped machine for working a protective tariff. That is the menace in front of us. I am perfectly convinced that every Free Trader in this country realises that that is what is before us, and that is our real fear. I can understand the Bill appealing to the Chancellor of the Exchequer. He gets it both ways. As Chancellor of the Exchequer, if he gets any revenue under this Bill it lightens his burden. As a Tariff Reformer and Protectionist, if he gets no revenue at all he fulfils one of the dearest desires of his heart in keeping out German goods. What do we get as any sort of inducement to accept this menace? Whatever the right hon. Gentleman may think now—and I am not going to reflect in any way upon any change of his opinions—I am quite sure he will agree that in the past, so far as he himself is concerned, and in the present, so far as a great number of people in this country are concerned, there is a deep-rooted conviction that Protection and protective tariffs are a menace to the prospertiy of this country.

I am quite willing to agree with the Prime Minister that you cannot properly describe the imposition of this Bill as the imposition of a tariff, but my point is that under this Bill you are setting up a machine which can work a tariff. We have been admonished not to be suspicious, and I think it is a proper admonition. At this point all of us in the country should be desirous of assisting the Government in what is a national matter, but I do submit to the Prime Minister that we have got very good ground for apprehending that what is really behind this Bill is, not a belief that we are going to recover a penalty from the Germans, but that under the cover of this Bill we are going to construct in this country an instrument for the application of Protection. It is all very well for the Chancellor of the Exchequer to shake his head, but, the fact remains.

We require no addition to our Customs machinery to carry out this Bill. The Customs machinery existing at the present time is sufficient for any purpose required of it under this Bill.

I entirely agree. I am quite sure the Civil Service in this country is quite capable of carrying out any protective tariff the right hon. Gentleman may be able to devise and impose, and, it may very well be, without increasing his staff; but certainly a good part of the Prime Minister's speech—

The hon. and gallant Member's objection to this Bill is that it sets up machinery for a general protective tariff. This Bill sets up no new machinery. The existing machinery is sufficient to carry it out. If it is sufficient for a general tariff, that is another thing, but there is nothing in this Bill to arouse the hon. and gallant Gentleman's fear.

Certainly, the Prime Minister led us to believe that all kinds of classifications, all kinds of categories, were going to be formed in which goods were to be placed, and for that purpose the resources of the Civil Service were to be applied. What do we get as an inducement to accept a policy of that kind? The Prime Minister put the Bill before us as an alternative to the proposal of my hon. Friend the Member for South Hackney (Mr. Bottomley) for a military occupation. Is it an alternative? Will the Government make it an alternative? In the event of the acceptance of this Bill, are they prepared to withdraw their troops from the advance or not to proceed further? Does it mean that if we accept this Bill, with all the consequences we fear, we are at least going to be released from the peril of being engaged further in military occupations in Germany? Perhaps the Prime Minister will give us an answer to that point. We have certainly no assurance that we shall get any other advantage from it The Chancellor of the Exchequer was good enough to say that he would not devote any time to reconcile the hon. and gallant Member for Central Hull (Lieut.-Commander Kenworthy) with himself. Perhaps he will devote a little time to reconcile his views with those of the Prime Minister. The Chancellor of the Exchequer very cautiously guarded himself against giving any idea of the amount likely to be raised under the Bill. The Prime Minister was not so cautious. In the House the other day he hazarded an amount of £20,000,000. He said:

"If you have this year, as seems to be likely, £50,000,000 or £60,000,000 worth, and you collect half, then, making allowances, you ought to get about £20,000,000 out of that tax."—[OFFICIAL REPORT, 10th March, 1921; col. 760, Vol. 139.]

The Prime Minister had no hesitation at all in committing himself to figures.

I put it clearly then that if Germany prefers to send none of her goods, you cannot get anything from this tax.

The Chancellor of the Exchequer was not safeguarding himself on that question, but was dealing with the ordinary operation of the tax.

I safeguarded myself exactly in the same way as the Prime Minister safeguarded himself.

Then may I take it from the Chancellor of the Exchequer that, on the import of £60,000,000 worth of goods—basing it on that figure—the tax is likely to yield £20,000,000? If that is his view, it seems to me there are one or two rather curious deductions to be drawn from it. Half of £60,000,000 is £30,000,000. If you are only going to get £20,000,000, it seems to me the expense of collection is to be very considerable, and it is rather difficult to square that view with that of the Prime Minister, that we were to have no addition to the staff or increase of the machinery required. Perhaps he or some other Member on the Treasury Bench will clear up that point. The Bill raises a number of points which are not properly Second Reading points, and must be dealt with—and dealt with very closely—in Committee, and we hope the House will be furnished with a full opportunity for dealing with those points.

I want to make this comment upon Clause 3. Under Sub-section (4) of that Clause it is laid down that all goods that come into this country are to be deemed to be German goods. We are not going to deal simply with the proportion of our imports which are coming from Germany, but the whole of the imports coming to this country are deemed to be German goods unless proved otherwise. So that what we get under this Bill is not simply interference with a small section of our import trade, which may be anything up to £900,000,000, and the imports from Germany are only £60,000,000, but, as a matter of fact, this Bill is going to affect the whole of our import trade, because it lays down most clearly that all the goods coming to this country are deemed to be German goods unless proof is given otherwise to the Commissioners. Perhaps I am taking a wrong view of the meaning of the Sub-section, and, if so, perhaps the right hon. Gentleman will make it clear. It says:

Perhaps the hon. and gallant Gentleman will read the next Sub-section to the one to which he has just been referring, Sub-section (5) of Clause 3.

May I appeal very earnestly to the House to come to a decision now? I really would appeal to the House to bring this discussion quickly to a close. The questions which are now occupying our time are Committee points. I am ready to undertake to move that the Bill be committed to a Committee of the whole House, and I trust, with the general unanimity as to the object of the Bill, that with the goodwill of the House we will carry it through with expedition. I therefore ask that we should be given the Second Reading now.

I only wish to intervene on the point which the right hon. Gentleman has just laid before the House, namely, the Bill being taken by a Committee of the whole House. That is a point which I have urged upon him from this box, and also in private. I am very glad indeed to hear that he proposes that that should be the case, because I quite agree that the points which are to be raised in connection with this Bill are, as to many of them, best dealt with in Committee.

I am stating my view. I am not talking about the question of principle. I am stating what is quite obvious to anybody who knows the House of Commons, that these points of detail, though vital, are best handled in Committee. That is so. That, however, does not at all permit the taking away of the right of hon. Members to discuss this Bill on Second Reading in accordance with what they feel to be their duty. What, however, I was going to urge upon my right hon. Friend was this, and it is in relation to what the Prime Minister said at Question Time in regard to this Bill. He made a most astounding proposal which certainly took away my breath. That was that in a Bill of this magnitude, affecting the whole range of business interests in this country, and also affecting our relationship to our Allies, we should not only take the Committee stage on Wednesday night, but the Report stage and the Third Reading. Of all the proposals made to this House, to this Parliament, that certainly is the most sweeping one. On that point, there is no knowledge at the present time before the House that even the Allies who met at St. James's Palace are going to carry out a similar undertaking to this. It has yet to come before their Cabinets and Assemblies. Only on Saturday, as my right hon. Friend said in reply to a question, were telegrams sent to these members of the Allies' Council who were not sitting at St. James's Palace. If this thing is going to operate it must operate substantially as a whole. What earthly reason there can be for rushing this thing through at this reckless speed I cannot imagine!

When I left the House a few minutes ago, there was a pile of letters on my desk. I only opened two of them, and they were from men of really high standing in the City who in these communications stated their alarm at the proposals, and their desire that the whole thing should be fully and adequately debated in this House before passing into law. Whatever may be said about the general merits lying beneath, there is one thing perfectly certain—that to rush this measure through without full and adequate discussion may do irreparable harm to many of the most important industries in this country. I am not debating the general principle of the matter at all, but I am urging this most important point. The House of Commons has got its faults, but at any rate it has one virtue amongst other things; if you give it a fair chance in Committee you have Members there, comprising men of high representative capacity, who look at matters from every angle of industry, and, given the chance, they will develop these points in the business interests of the country.

It will be a mistake if the Government carry out their desire to rush through this great measure. The Prime Minister said it might be found a permanent measure. He looked forward to long years of operation, and to put this thing through, not in 12 hours, but after perhaps 20 hours' debate, is perfectly ridiculous. There is no hurry. There is a real need for careful deliberation for the sake of the business interests. They are the interests which are mainly affected by this. If they cannot operate the measure in a smooth and efficient way which commends itself to the business sense of the community the whole thing collapses in failure. It must fail unless you get it thoroughly accepted by the private business community who have to work it. I urge most strongly upon my right hon. Friend that, first of all, it is a mistake to close down this Debate, a very great mistake. You had much better allow it to be talked over fully by the men who want to talk it over from their point of view. It would be much better to do that than to rush it through the House in this way. I urge upon my right hon. Friend not to take the Division before the normal or usual time. Nothing will be saved by not doing so. My right hon. Friend the Patronage Secretary knows that full well. You may use up another three hours now, but that will be nothing to the time used if you get men irritated and annoyed by thinking that they have not had fair play.

My right hon. Friend makes a strong appeal to me. I have done the very thing he asks me, and that is all the help he gives me

I am astonished at my right hon. Friend taking that point of view. I am certainly not in the least desirous of preventing the proper progress of this measure—not at all! I am only saying it would not do any good to try and close the thing up—not a bit! Minorities, however small, of this House have a right to be heard. Any attempt to crush them out will not do any good to the Government or anybody else. Let me tell that to my right hon. Friend. I say if the Government take the action they propose on Wednesday it will not be in the interests of the general community.

The object of this Bill is to exact from Germany the payment of reparation which she has undertaken to pay by the Treaty she has signed and hitherto failed to implement. I believe with regard to that object the House is unanimous. I believe all Members consider it is a desirable object. That is the point of view from which I consider this Bill. I assure the right hon. Gentleman that I do not bring into the consideration of this question any theoretical question or theoretical doctrine of free trade. This is an abnormal situation. If I believed that it was possible by these abnormal means to secure payment by Germany of the reparation which she ought to pay, I would support the measure I would not be debarred by any theoretical view or any economic doctrine. There are, however, a number of difficulties to consider in the measure from that point of view. They are Second Reading points and have nothing to do with the discussion in Committee. The points that occurred to me I should like to put to my right hon. Friend. These points have not been hitherto mentioned in debate. They seem to me to go absolutely to the root of the whole matter. I understand, after listening to the speech of my right hon. Friend, that the view he takes is that the effect of this Bill will be that the British importer will be relieved from paying half the purchase price to the German exporter, and that he will pay that half of which he is relieved to the British Government. Is that the view of my right hon. Friend?

That is the question which I dealt with at length in my speech, and which the Prime Minister dealt with at length. I do not know that I can repeat it

The impression I gathered from the speech of my right hon. Friend was that he was under the impression that this Bill would secure that the British importer would only pay half the purchase price to the German exporter. I take the opposite view. I take it that never in a single case will the British importer only pay half the purchase price of German exports. In every case under this Bill he will pay the full purchase price to the German exporter. It will be to his financial advantage to do so. Those who think to the contrary have not, I think, devoted adequate consideration to the economic effect of the Bill. Take a case of German goods which are valued, say, under present conditions at £100. Let us see how the Bill will operate with regard to that £100 worth of goods. No German will send goods to this country unless he is going to make some profit. He will not send them to you at a loss. If we take half of the value he will make no profit, he will be sending such goods here at a loss. I admit that he can afford some considerable reduction in price. Let us say that the price which would afford adequate reward for him to send his goods here under the new conditions would be, instead of £100, say £80. The price that he must receive to induce him to send goods here would be £80, and he would not send the goods unless he received it. If the Bill has the effect which the right hon. Gentleman expects, the purchase price will be £160, out of which the German exporter will receive £80, and the other £80 will be paid to the Government here, the total cost to the British importer being thus £160.

There is, however, a method whereby the British importer can pay far less than that. If he be willing to pay the full purchase price to the German, he will save at least £40 on the transaction. £80 is the price which the German must receive and for which he is willing to sell the goods If he has secured that and payment is guaranteed to him and a deposit made so that he will receive the whole £80 of his purchase price, then the amount which will have to be paid to the British Treasury will be only £40. Therefore, instead of costing the importer £160, it will cost him only £120. That is true, whatever purchase price you take—where the German is willing to export—for goods imported under this Bill; and I submit that the British importer will pay to the German exporter the full purchase price and that he will save money by doing so. That is the first difficulty that occurs to me.

The second difficulty is that, so far as the Bill is effective in raising any revenue, the revenue will be raised to a consider- able extent from the pockets of the British consumers and taxpayers. I admit that to some extent the German will contribute. He will have a reduction of the profits which he previously received. The purchase price, however, will be raised, and, so far as the purchase price is raised, this additional revenue will be paid, not by the Germans, but by the British taxpayer. That is not all that the British taxpayer will pay. He will pay, not only on the things which are imported from Germany at a higher price, but he will pay also on goods of a similar class which are manufactured at home. Take the case of toys as an illustration. If German toys are imported under this Bill at a higher price than at present, then the British taxpayer will pay the excess of that higher price. All the toys, however, produced in this country will increase considerably in price, and a higher impost will be levied on the British consumer and buyer, the only difference being that whereas the impost levied on German toys will go into the Treasury the impost levied on British toys will go into the pockets of private traders. On both hands the British taxpayer and consumer will lose.

The third point I should like to mention is the injury which it seems to me that this Bill is likely to do to our trade with neutral countries. So far as it becomes a barrier against German trade in this country it will drive that trade into the neutral market. Trade finds its own level, and so far as the Germans lose trade in this country they will trade more in other countries. I do not know what the extent of that market will be. It comprises the whole of Northern Europe, Holland, Norway, Sweden, Denmark and Finland; it comprises—for what it is worth—Austria and Russia, which is a developing market; it comprises Spain, practically the whole of South America, and one might almost guarantee that it will comprise the United States of America. How far will it comprise our own Dominions? I should be very much surprised, after having watched the course of recent events in South Africa, if a measure similar to this is passed by the Union of South Africa. To that extent it seems to me that the effect of this measure, so far as it acts as a barrier to German trade in this country, will be artificially to drive German trade into those neutral markets and deprive us of trade which we might otherwise enjoy.

There is another point which seems to have escaped consideration. If this measure is effective, as the right hon. Gentleman expects, in raising revenue from German exporters, we are not the only people who can adopt that method. It is open to the simplest and most obvious method of retaliation. What is there to prevent Germany from passing a measure of exactly the same kind, relieving German importers of paying half the purchase price to the British exporters. If Germany contributes to the reparation by means of the tax which we levy here, it seems to me that she has a simple and obvious way of recouping herself from anything she has lost at the expense of the British exporter by means of a retaliatory measure.

The last point I desire to mention is this. This Bill will have legal validity in our own country and in the Law Courts of our own country. It will have no legal validity outside our own country or in the Law Courts of Germany. If importers here act as my right hon. Friend thinks they will act, and pay only half the purchase price to German exporters, they will not by this Bill be relieved of the legal liability to pay the full debt in Germany. If any of these British importers have a branch in Ger many, or a member of the firm is in Germany, or they have any property there of any kind, they will be liable to attachment both in their persons and to the full extent of their property for the full debt which they owe in Germany. That will be in accordance with the law, a thing we cannot dispute, because the Bill which we pass here cannot and does not presume to have any legal vadidity in the German Courts. If the Bill had the effect that my right hon. Friend expects, it would amount to the prohibition of any British importer travelling in Germany at any time, because he would be liable to attachment, and it would be a closing down order to any British firm having a branch or property in Germany, because that also would be liable to attachment.

These are five difficulties which have occurred to me. Not one of them is a committee point; they are all material points going to the very root of the Bill. I have not heard anything said by the right hon. Gentleman or by any other speakers from the Front Bench which meets a single one of these points or relieves me of any anxiety with regard to them.

I am anxious to support the Government. I think my record in this House shows that I am. I have come here with the full desire to support the Government and to strengthen its hands. I know that it is dealing with a very difficult and complicated question. But these are material points which occur to me and which seem not merely not to have been met, but not even to have been anticipated by the right hon. Gentleman, If he did anticipate them, he carefully concealed it from the House, because there was no reference in his speech to any of these very material questions which go to the root of the whole case. I content myself at present with putting these difficulties, but if they are not met, I must say that I could not then support a Bill which seems to me not only to fail in the object which it sets before it, but which is also calculated to impose serious hardships and serious burdens upon British trade and British industry.

8.0 P.M.

I do not want to take up more than a moment of the time of the House in discussing this Bill. I am in the main, I may even say entirely, in favour of it and shall support it; but there are just one or two points of criticism which I wish to raise. I can readily understand the enormous amount of hostility shown to this Bill in many quarters, because we all know that in the last few months the importations of manufactured goods from Germany have been going up, and a very profitable business has been carried out by importers and by Germans. Naturally, they strongly object to any interference with their business. Our exports, I think, have very little to do with it. The point I wish to make is, that I think it would have been better for the Government to have introduced a Bill to deal with the collapsed exchanges at the same time as they deal with the present matter. The case of one has a good deal of relation to the other. Under this Bill there is a method of valuation of the German goods that are sent here very similar to that adopted for the purpose of Customs duty under the Finance Act No. 2 of 1915. This is not really a Committee point; it is a most important point affecting a very large amount of revenue, and I do ask my right hon. Friend the Chancellor of the Exchequer if he will give it careful consideration. Things which are sent here from Germany, as I understand it, will be treated as if they were of the value of the invoiced price, and this invoiced value will be accepted by the Exchequers as the primâ facie value, though naturally the Exchequer will have to protect itself in cases of evasion. What I want to call my right hon. Friend's attention to is this. That value will be an insufficient value for any purpose when he comes to deal with the collapsed exchanges. He will find then that he will have to take, not the invoice value—which is the invoice value at the collapsed German exchange rate—but the world value. And there is a vast difference between the two. There is a little collection of samples of German goods which my right hon. Friend and other Members of the Government have been invited to see, and which the whole of this House will be invited to see, which will show them at a glance what I mean, and how important it is that all these goods should be valued at their world value. Take the case of musical instruments. You can take the case of musical instruments, but I do not want to go into unnecessary details. I will merely beg my right hon. Friend (Mr. Chamberlain) to consider the question of accepting an Amendment to his Bill, so that it will be clearly expressed that it is the world value of the goods which is to be taken for the purposes of this levy, and not merely the invoiced value, which would be quite erroneous.

Like many others engaged in the import and export trade, I view with a considerable amount of concern the proposals in the Bill we are now considering, and when I say that I view them with considerable concern, I am not alone, because it will interest the House to know that last week' at the London Chamber of Commerce, which is one of the largest trade organisation in the world, they considered this matter and viewed with much apprehension what might occur if the provisions of this Bill were passed into law, and they have requested various Members of this House who are connected with that body to watch very closely all the details of the measure. There are so many provisions in this Bill that one wonders how they are to be put into operation, and when you put them into operation one has to take into consideration what amount of damage we should be doing to our own commerce. One heard this afternoon with much interest that importations from Germany during last year reached the total of £31,000,000, but the exports from this country to Germany reached over £50,000,000. Therefore when we are considering this question we must not consider it from the one standpoint alone, that is to say, what effect will occur to our £31,000,000 of imports, but what will be the effect of this Bill upon our £50,000,000 of exports. That is a very important matter. Only this morning, a German manufacturer who imports the bulk of his raw material to this country sent me a letter to this effect:— to put up 50 per cent. in cash when the goods arrive in England. If one firm gets preferential treatment, as they will under the conditions I have described, that will be a very serious drawback to their competitors. The Prime Minister told the House there would be little or no difficulty in deciding the proportions of German manufacture in any commodity. I would very much like to know how it is to be worked out. Take a commodity like hosiery which comes from Saxony. The wool comes either from Australia or the Argentine, or the hosiery is made out of cotton which comes from America, India, or some other place. That will open up a very serious proposition for our Board of Customs, if they are to examine as to how much of each commodity is of foreign origin in its original state, and how much is represented by German labour and German profits. The Prime Minister assured the House there is little or no difficulty. He has told the House that the Board of Customs have a complete scheme and all that is necessary is that the consul should prove. I do not know how many consuls we have in Germany but there are an enormous number of towns spread over a tremendous area, and if we are to have a British consul in every town, and if each consul is to have a staff to visit the factories, and examine the books, I am simply horrified at the prospect before us, that is, if we are going to work this scheme in an effective manner. If we are not going to work it in an effective manner, I suggest we should not put it into operation.

There is one other point to which I should like to draw the attention of the Chancellor of the Exchequer, and that is the question of re-exports. It is quite true that when goods come in original consignments they are simply transhipped from one vessel to another. That is quite a simple process, but there is very little business done in that way, as the Chancellor of the Exchequer clearly remarked this afternoon. There is, however, an enormous amount of business done in importing in bulk into London and other places, then splitting up into small consignments. These transactions run into hundreds of thousands of transactions, and the House must realise that we have to supply cheap Continental-made goods for the use of the Kaffirs in South Africa and the natives in India, and also on the West Coast of Africa. They are all imported from London, although manufactured in various places abroad, and I invite the Chancellor of the Exchequer to say how he is prepared to cope with cases of that kind. It cannot be done. One effect is pretty certain. The German manufacturer will not be prepared to send these goods, except on one condition, that he gets his cash in advance, or has got arrangements with the bankers to give him the goods. It is quite true, as the Prime Minister said, it would be a serious thing for Germany if she lost these £31,000,000 of exports—not £50,000,000 or £60,000,000, as the Prime Minister mentioned, he evidently had not the correct figures for addressing the House.

It would be better if some other way could be found to get this money out of Germany, because, like all the hon. Members who have spoken, I certainly think Germany should pay, and pay substantially, towards the damage she has done. When her representative was here last week I did not understand he repudiated the liability of Germany to pay. If I read the newspapers correctly he did offer to pay what was arranged the Germans should pay in Paris, as the first five yearly instalments. It is perfectly true he qualified that by saying he did not know what was going to happen in a certain part of his country, and if that was taken away it would reduce Germany's income, but, subject to that income not being reduced, that she could see her way to pay the first five years' instalments of the amount she had undertaken to pay in Paris. If that is correct, then I must certainly express my surprise that the Prime Minister would not accept that offer when that offer was turned down, nor did he accept the proposal of the German Minister to grant him an extra week's time to go back to Berlin to see if he could not persuade the German Government to authorise him to make some other proposals. Surely that would have been better in the interests of the world, and especially in the interests of declining trade we are so anxious to revive. Either one of these two proposals would have been better than the scheme now before us. I must express my surprise and amazement that, instead of accepting one or other of these proposals, the Prime Minister decided to bring forward the proposition we are now considering, which I am sure, if put into operation, can only entail an enormous amount of cost and loss of trade. We do not import German goods for our own amusement; we import them for profit, and we make profit on them. Both countries can give up this trade, and still go on with much loss and inconvenience to themselves. That loss and inconvenience, however, will not be confined to their own countries, but will affect the difficulties, and prosperity of countries other than their own. Therefore I do suggest to the House that we might well content ourselves with passing the Second Reading of this Bill and leave it to the Government to re-open the negotiations with Germany, with a view to getting her to accept the proposals, or, if they are not prepared to pay the 50 per cent., then to allow them a reasonable time to make other proposals. Anything, in my judgment, would be preferable to putting into operation proposals which can only lead to trouble and confusion.

The Chancellor of the Exchequer this afternoon opened his speech by quoting extracts from speeches of various Members of the House in their varying statements with regard to Germany. The object was to show to the country, and especially to Germany, that, whatever differences of opinion there may be with regard to this particular Bill or with respect to points of detail, there is no difference of opinion in any quarter of the House as representing the country; and, indeed, so far as the mass of our people are concerned, they intend that Germany shall be compelled to make reparation. I reiterate that statement to-night for the reason with which my right hon. Friend quoted it, namely, that while we may criticise or may disagree with the Government's methods, while our party are united in condemnation of those methods, yet we desire to strengthen the hands of the Government in making that clear-cut declaration, and we believe it would be a misfortune to the German people them selves and complicate future action if they did not clearly understand that, so far as general principles are concerned, every party in this House is united. I quite understand, therefore, and appreciate the object of the Chancellor of the Exchequer, which was primarily for the benefit of Germany. That we fully understand and appreciate and have no desire in any way to quarrel with on general grounds.

When we talk of German reparation we want to discriminate between the Bill and the method. Not only does this proposal mean that Germany will not pay, not only does it mean that we cannot make Germany pay, but, in our judgment, the application of this Bill will mean that the British worker, in unemployment, will pay the indemnity, and not the Germans at all. We are, therefore, entitled to say quite clearly that if this Bill, in our judgment, could accomplish what is urged in its favour, every section in the House would support it. But we do not believe it will do that, and the more we examine it the more satisfied we are that, instead of making Germany pay, it is going to aggravate the very difficult unemployment problem of which we are complaining at the moment. Incidentally I would like to draw the attention of the Chancellor of the Exchequer to the optimism with which he quoted the opinions of business men on Thursday night last. In the course of my speech then, I intimated that I had discussed this matter with many business men of all shades of politics, and in responsible positions in the City, and I indicated that not one of these men expressed any view in favour of this Bill. The right hon. Gentleman took me very seriously to task, and said, in substance, so far as the business community was concerned, he had consulted them—and of course he had better opportunities of so doing than I—and he had no hesitation in quoting business men in support of this proposition. I wonder whether he has noticed that in organs of the Press, strong supporters of the Government, whose views on Germany cannot be questioned, whose sympathies with this country cannot be challenged, whose support of the Government would not be doubted for a moment, I wonder if my right hon. Friend has noticed that even in those organs of the Press there is but very qualified support given to these proposals.

Yes, I am coming to that. In many of these papers there is strong opposition to them. The most remarkable barometer—the Stock Exchange—shows it. Business men whom I have met to-day, men holding responsible positions, do not hesitate to say we have just reached a stage where the business tide is turning. Many said that the last fortnight had disclosed a change in the industrial situation. Many of them said they believed we had touched the bottom and were reaching a stage where confidence was being established. They did not hesitate to say also that this proposal, this Government Bill which is going to compel Germany to pay, will have the effect of knocking all business to the winds in the City. If that is the first effect of its introduction, if the first effect is to shake confidence in the City, if business men and men who ought to know are doubtful of its success, how can we hope that the application of the Bill will succeed. Let me examine it a little more closely. Whatever views there may be with regard to Germany all men who have studied the question are convinced that it is in the interests of this country that Germany's trade should be revived. There is not a business man, not a man who has studied the connection between ourselves and Germany, who deplores all the circumstances of the War, who will not frankly admit that the one essential for Germany to pay and to make reparation, and what is more important for the restoration of the world's trade and commerce, and the restoration and solving of many of our economic and industrial problems, is not only for Germany to get a start, but for her to be in a position in which she can trade as freely with us as she did prior to the War. If that be the accepted position of all economists and business men, of those anxious for the prosperity of our own country, I would ask the Chancellor of the Exchequer how it an be brought about if first you prevent Germany trading as freely with us as she otherwise would. It is agreed that Germany can only pay for her imports from this country by exports to this country. It is admitted that gold cannot possibly enter into the transaction. Therefore, the more we prevent Germany from buying from us, the more we cripple our own markets and cause unemployment. The first effect of this Bill is to reduce by 50 per cent. the buying capacity of Germany from us. We admit that we are dependent upon our export trade, and the first effect of the introduction of this Bill is to cripple that export trade. In the second place, we force Germany to be a much stronger competitor in our neutral markets than she otherwise would be. Germany is not a fool. She has proved conclusively that she requires no advice from us as to her business methods. Suppose that the German Government and those responsible for advising Germany turn round and say, "Very well, this is a punishment that we can get out of. We disagree with the punishment, we disagree with the method, but in its application we can defy it, and we will defy it in such a way that it will rebound against the very people who are inflicting it." They say that, instead of trading with us with a 50 per cent. adverse balance, they will compete at a figure less than the 50 per cent. in the neutral markets against ourselves.

Obviously, that is another way in which, instead of this being a Bill to make Germany pay, it is a Bill making the British people pay. [HON. MEMBERS: "No, no!"] Now I come to the third proposition. If one could assume for a moment that this was to be a Bill to which both sides were parties, that both sides were anxious for its success, and that both sides would say; "This is a method of which we jointly approve and we will make the best of it," there would be difficulties even then. There would be Customs difficulties that would be very hard to overcome Instead, however, of this being an agreed Bill, instead of there being a mutual feeling on both sides to make the best of the Bill, instead of both Governments saying that it is an arrangement to which both are parties and towards which both will help, we start off knowing clearly that it is an arrangement which they do not desire, and which they will immediately endeavour to get out of. Let me indicate another way in which they can do that. It would be generally agreed that one of the first essentials to the restoration of trade and commerce is either the stabilising of the exchange or the bringing of the exchange back to something like its normal position. I am not so sure whether it matters. I do not take the view that to bring the exchange right down would be so necessary, if we could stabilise the exchange. The great difficulty with the exchange is not that it is so much above the pre-War condition as that it fluctuates from day to day, so that business men cannot trade. If we admit that there is a difficulty with the exchange, and that it is not to our advantage that German currency should be so depreciated, what is to prevent the German Government from manufacturing as much paper money as is involved in their trade with us? If for every £1,000 that is paid by the German manufacturer, the German Government merely manufacture more marks to pay their traders in their country, the German Government are not hit. They get over the difficulty very easily by the manufacture of more paper money. But the effect, so far as the German people are concerned, is further to inflate their currency and render the position more difficult for us.

The Prime Minister said that he had consulted the Customs and the Board of Trade. He indicated that, of all the people who could advise on this matter they were the last word as authorities, and he went on in the most optimistic way to say he was assured that not only could this thing be done, but that it was simplicity would not cost a copper. All I can say is that no business man in the country believes anything of the kind. We can only hope that it is true, and that my right hon. Friend's advisers have not been too optimistic. Judging by experience in all countries in matters of this kind, those with any knowledge—I do not set myself up as having any knowledge of the matter, but I have discussed it with others—simply do not believe the Prime Minister's statement on this aspect of the question. On the contrary, they say that it will lead to the appointment of a host of officials, that it will lead to all manner of complications, and, above all, that not only will it hamper German and British trade, but, what is far more important, it will so hamper trade with neutral countries that in the long run we shall find in this country that a very serious industrial crisis has been created.

For all these reasons we believe that our duty is not only not to give any blessing to this Bill, but to point out clearly and definitely to the Government that, in our view, it is not a wise decision. We can only conclude that the Prime Minister has been driven from pillar to post, first with one policy and then with another, one day influenced by one method and another day by another, one day playing up to France and another day realising that France's policy cannot possibly be our policy. We believe that, owing to all these complications and difficulties, this is merely a panic measure that cannot possibly succeed. In our judgment, it will not accomplish the object for which it is intended, namely, to make Germany pay. For those reasons I am empowered to state the grounds upon which we take exception to this Bill. But, on the other hand, keeping in mind what was said in the Chancellor of the Exchequer's opening speech to-day, and in the speech of the Prime Minister, namely, that the action of no section of the House should be misunderstood, we do not propose to divide against the Second Reading. I think I have given very good reasons for that action on our part, and I am sure that no section of the House will accuse us of trying to do anything but what is in the best interests of the country. We have arrived at that decision so that our action shall not be misunderstood even in Germany, and because we want to give no encouragement or hope to any section to believe that the country is divided. For those reasons we will not oppose the Second Reading; but we will reserve our Parliamentary right on the Committee stage to move such Amendments as we feel can improve the Bill, although I do not think any Amendments can improve it. We extremely regret that circumstances compel us to debate this matter to-night. We realise the difficulty of the country, and we realise the difficulty of the Government. My last word to them is that they should take counsel again and realise that it is a downward path that they are now treading and that there are many dangers. Whilst not desiring to hamper them or to do anything which will embarrass them, we shall exercise to the full our Parliamentary rights and powers and reserve to ourselves on the Committee and Third Readings stages the right to take such action as we think fit.

I think the right hon. Gentleman's prophecies, fears and prognostications are to a great extent groundless, because I believe as soon as the German people have arranged with this country as to the total amount of the reparation that they ought to make this Bill will be the foundation of an agreement and arrangement between them, and I think I can call in aid the authority of the speech of the Chancellor of the Exchequer in which he said that Herr Simon, the representative of Germany, was in favour of the principle of the Bill. I have risen to put to the Chancellor of the Exchequer three points—one my own and two which I have been asked to place before the House by the Council of the London Chamber of Commerce. In Clause 2 there may be, and I think there is, a very considerable omission. It says the goods first consigned from Germany are to be the goods which are to be subject to this Act, goods not so consigned being goods wholly manufactured or produced in Germany. We know what manufactured goods are and "goods produced" means natural products, such as coal, potash, wheat and so on, but it does not in any way provide for goods which are imported into Germany and re-exported to this country, of which, I suppose, there is a considerable amount. Perhaps some such words could be put in as "or goods imported into Germany for exportation therefrom to this country," so that you notice our re-export trade here but you do not notice or include in "goods" which are to be subject to part payment under this Bill goods for re-exportation from Germany. It does not come under the first part, "goods first consigned to Germany," because they are not first consigned to Germany. They are probably from European countries to the East of Germany which, when things become normal, Germany will import from Russia when Russia settles down, and from the new European States and from Austria and Hungary, and so on, so there may be considerable re-export trade through Germany, and I think that ought to be included under the description of goods which are to be the subject matter of the Bill.

The first point the London Chamber of Commerce asked me to make is this. It applies to contracts which have been made before 8th March. Clause 4 provides for those persons who are liable to accept bills of exchange or make advances in connection with the importation of goods. Those people can go to the High Court and in case of hardship can have matters set right, but under Clause 5 ( c ) the Board of Trade may by order extend the classes of contract to which Clause 4 applies, but only the class of contract. There is one very considerable and important case which will not be covered by any of these words in Clauses 4 or 5, namely, the case where a merchant in this country had entered into contracts before 8th March with Germany to deliver goods coming here and has not paid for them, and which Germany may repudiate, but he has re-sold the goods, either in this country or in foreign countries, such as India. A great deal of trade comes in that way. Of course, most merchants who import goods into this country do not import them for themselves, but to sell again. They are liable, therefore, as the importer, if Germany refuses to deliver the goods under this Bill, which is the fear of so many hon. Members opposite, to damages to their customers to whom they have resold, and also to those to whom they have sold the goods abroad.

The next point is with regard to neutrals—contracts before 8th March made with neutral customers. After the Bill is passed everybody will know that when they buy goods it will be for them to explain to the Customs House the origin of the goods and the country from which they came, if they do not come from Germany, if they wish to escape being hit by the Bill. In the case of contracts already existing, it is rather hard that they should be obliged ex post facto make all the inquiries, which may be very difficult and even impossible to make afterwards, as to the origin of the goods and the country they came from. With regard to contracts placed or made by merchants here before 8th March with neutral countries, can you exempt them from being obliged to satisfy the Customs with regard to the origin of the goods, whether or not they originally came from Germany or whether or not they were partly manufactured in Germany to the extent of 75 per cent., as the case may be?

I should like to say one word with regard to the hon. Member for South Hackney (Mr. Bottomley). He leads an enormous mass of opinion in this country and when he says that this Bill is no use and that we ought to march troops with the French, Italians and Belgians into Berlin, I hope he will not think I am trying to teach him, but will he call to his mind again the fact that the action we are taking now is an action which is justified by the Treaty and as long as we act according to the principles of the Treaty no complaint can be made by Germany, but the very moment we go outside the Treaty and march upon Berlin, that is an act of war. The Treaty is gone—torn up—and even if we succeed in reducing Germany to submission again in a short or a long time we should have to make a fresh Treaty altogether. I hope the hon. Member if he influences as he does such an immense body of public opinion in this country will reflect before he again makes a suggestion which would, if carried out, perhaps result in a very lamentable state of affairs. What good would it do us to go to Berlin and to carry away the furniture from the houses. We could not kill the women and children. We have so often decried that. We could only take away the animals from the Zoo and bring them over here, and also other unprofitable things of that description.

With regard to the Bill, I think the Chancellor of the Exchequer has made out a primâ facie as to the possibility of our getting paid by Germany in this way and the probability of the German Government assenting to the arrangement contained in the Bill as soon as they have agreed to and fixed the total amount of indemnity they have to pay. There are the fears and doubts of merchants which must be protected and which I hope will be fully considered in Committee. I trust that we shall have plenty of time given in Committee to protect their rights as far as possible. I notice that the Bill does not extend to Ireland. Is Ireland included? I see reference only to the High Court of Justice of England and the Court in Scotland. There is nothing said about Ireland being included in the Bill. I do not know what the effect of that may be, but it is one to which attention should be drawn. I shall be glad if the Parliamentary Secretary to the Board of Trade would look at Clause 3 and the last line of the first paragraph and note the words, "shall be deemed to be the purchase price." It is very improper that those words should be used there, because there is nothing about purchase price anywhere else in the Bill; it is all "values." These words would lead to confusion. If you would leave out the words, "purchase price" and insert "value for the purposes of this Act" it would make the whole Bill harmonious. I thank the House for the patience they have shown in listening to me whilst I have put a few practical points.

I wish I could share the optimism which has been expressed by the hon. Member who has just spoken. I was very glad to hear my right hon. Friend (Mr. Thomas) tell the House clearly the position of his party in their attitude towards Germany. I find myself in a position of some difficulty in making any comment on this Bill; but it is only right and proper that every one of us should clearly state our position in saying that we are unitedly behind the Government in their demands upon Germany for an indemnity of some kind. There is no doubt in the minds of any of us that Germany instigated the War, and that but for her action we should have been living to-day in a prosperous and, comparatively, happy world. While that is common ground, this Bill presents certain difficulties which I should like to have cleared up. It seems to me that the sentimental point of view predominates in this Bill rather than the practical. We are living in the cold atmosphere of economic facts, and I welcome anything that would help me towards a solution of this matter in that region. The Chancellor of the Exchequer in introducing the Bill dealt very fully with various points, but the difficulty in my mind, as an ordinary business man, is that we in this country, essentially a commercial nation, are having projected into our commercial system a totally new principle. We have built up a great position amongst the commercial nations of the world by our system of free imports. That was not a fortuitous circumstance. We have built up that system and have taken front rank amongst the commercial nations of the world by deliberately adopting that system as the result of experience and as the fruits of errors in a different direction. We are now giving up that system under this Bill, and although the Prime Minister this afternoon in an eloquent speech assured us that all would go as merry as the marriage bell under this Bill, I confess to having very serious doubts. He told us that the commercial world would fall quite naturally into the new conditions. I do not know whether the Prime Minister himself had any experience of those Government Departments during the War which had to do with industry and commerce. I had a great many such experiences, and my strong feeling is that the more we remove from any interference in industry the paralysing influence of Government Departments, in that degree our industry and commerce will prosper.

What are we asked to do under this Bill? In place of the free interchange between commercial firms in this country and commercial firms in Germany, Government Departments intervene, and through the Customs a very serious import duty is to be imposed upon imports from Germany here. That is all to take place under the description of indemnity. I should be the last to take from Germany one iota of her responsibility either in the direction of indemnity or of any penalties which we could impose, but we must have some regard to the effect of the levying of these indemnities upon our own industries and our prosperity in this country. Let me give an example of what I mean. We demanded from Germany a certain indemnity under the Treaty of Versailles, which was to be paid in coal to France. At the present time France is receiving from Germany something like 2,000,000 tons of coal per month. Our total exports from this country to France before the War amounted to 20,000,000 tons of coal per annum, and the consequence of the payment of the indemnity in coal to France by Germany is reflected in the condition of our mining industries to-day. That market to us is absolutely closed. France, which is receiving the coal from Germany, is not only consuming it herself, but she has a surplus of that coal which she is exporting to Italy at a high price, and the effect is not only that the French market is closed to us, but also part of the Italian market. That is a very serious circumstance. However anxious we are to penalise Germany, we must not in this matter bring into being a boomerang which would hit Germany but will hit us far more. I was one of those who, when elected to this House, were advocates of making Germany pay. I still desire to make her pay, but I am forced to this conclusion, that we should not worry so much to-day about what Germany can afford to pay as about how much we can afford to take. Industry in this country is reviving in some directions, but the equipoise of the commercial machine is very delicate, and we cannot afford, especially in view of the enormous amount of unemployment, to have bur trade, even by the payment of an indemnity, further dislocated than it is in present conditions.

If some means can be devised of extracting payment from Germany, I shall welcome it, but I cannot see that it can be accomplished under this Bill as drafted. It is not that I doubt Germany's capacity to pay. I believe, and I have a certain amount of evidence of the fact, that in many ways Germany is recovering more quickly than some of the belligerent countries. There is considerable internal properity in Germany at present. The Prime Minister referred to this matter to-day and asked why is Germany not exporting more to neutral countries? The reason is obvious. It is not because the neutrals do not wish German goods. If that assumption is made it is a profound mistake. I am informed that to-day Germany is able to dispose of all her productions and could sell more to neutral countries, but up to now the opportunity of a complete re-establishment of German industry has been somewhat restricted. But I have also evidence of the fact that the rehabilitation of German industries is going on at a very rapid rate and we shall have very serious competition to meet before very long. In view of that fact I am exceedingly unwilling to see any restriction placed upon goods coming into this country because there are so many of these goods whose manufacture we can finish so that we can export them to bring revenue to our country. Under the Treaty of Versailles we are doing everything possible to assist German trades and reestablish her commercial position. For this reason. While we ourselves are spending enormous sums on defence and armaments of various kinds we have insisted that Germany shall spend no more in that direction. The consequence is that all her war machinery and resources are being turned on to productive activity. That is a fact which will tell very much in the commercial relations of the various countries in future years.

9.0 P.M.

I was exceedingly pleased to hear the statement from the right hon. Gentleman the Member for Derby that the Labour party are not going to vote against the Second Reading of this Bill. I support the Bill most heartily. I believe that it is the beginning of what I may call an act of justice to our own people. I do not think that the Member for Derby realised what a continuance of the present position means. We have heard from the hon. Member for Dunfermline (Mr. Wallace) what Germany is doing, though she has not yet got into her stride, in the production of articles of commerce for sale and this and other countries. Competition from Germany has begun in a most serious way and it will continue to increase to such a point that unemployment in this country will be vastly worse than it is unless something is done. If reparation is made in the form of money then our competitor will be weakened, but if this Bill is passed it will be the first act of justice towards our own workers. Having won the War we have passed sentence upon Germany and if the execution of that sentence is not carried out then we and the Allies stand before the world as people who are unable, after passing sentence, to see that it is carried out. This Bill is the first step towards the execution of the sentence. I am glad that at the Conference held in London last week Germany did not accept the terms that were offered, because in my opinion this judgment that we are about to pass by this Bill, plus the Bill which we expect to be introduced by the President of the Board of Trade next month, which will correct foreign exchanges in regard to Germany and which will put a further tax I presume of something like another 50 per cent. against her goods, with a general tariff which we shall then pass on goods from all countries, with preference to our Empire and our Allies, will carry out the punishment of Germany for provoking the War and continuing it.

If we simply say that reparation shall take the form of money payment, I for one do not believe that any moral loss will be felt by the people of Germany, but if we by our actions shut them out from the sea, then we are practically sentencing them, if it is to last for 10 years, to 10 years' penal servitude. The nation which cannot touch the sea, whose goods have not the free course of the sea, is put back far more than she could be by any money penalty. I was much struck by an article written by a former Member of this House a year before the Armistice was signed, in which, in rather a prophetic vein, he put the position of how the reparation of Germany would be easy. She should be cut off from her traffic on the sea. He says:

It is said that our export trade is everything, but our home trade is greater than our export trade, and by many competent authorities is estimated to be five times as much as our export trade. In common justice to our own workers we should see that this unfair competition with Germany is checked in every way possible. I sincerely trust the United States will follow our lead to some ex- tent. In any case she has a huge tariff against German goods. Taking the Allied markets and the British Empire market together, Germany will not have a great field in which to sell her manufactured goods. She covets and envies this market; she wants to sell her goods here and to have the freedom of the seas. When I was travelling up to London today I saw in the newspaper a statement that astonished me. It was that the German shipping which had been handed over to us as part reparation could not find buyers here, and that the Government were thinking of rescinding the Clause in the Treaty and selling the ships to Germany again. I sincerely trust that no such action will be taken. I would rather that these ships rusted away than that they should be sold again to the Germans. It is envy of the sea power of England that is one of the motive forces of Germany. If by this Bill we restrict severely the power of Germany with regard to oversea trade, I believe the people of England would feel that some reparation was being made. I would rather see no money paid but Germany punished, as this Bill will punish her, as other Bills to follow will punish her. It was a German who wrote these words:

As I find myself in disagreement with my hon. Friends on these benches, I do not want to give a silent vote. I am glad to express my support of the policy which I think the Government are pursuing in this matter. Lip service has been paid from all these benches to the need for reparation, and for making Germany pay, but as one great scheme after another has been suggested whereby that reparation can be carried out, it has been turned down first by one speaker and then by another. The hon. Member for Dunfermline (Mr. Wallace) objected to Germany sending coal to France because it was spoiling our market. I do not follow his reason entirely on that question, because, from the little I know of the coal market, if only the world trade was normal the needs of this country for coal are so tremendous and the need in neutral countries so tremendous that we could well afford to take all the coal that Germany could send to France and keep our mines at full work. Objection was taken in the course of the Debate to the ships that have been handed over by Germany, and the suggestion was made that that was throwing out the shipyard workers on the Tyne and the Tees and the Wear. I come from a shipyard constituency, and I venture to say that the turning over of those ships to this country has not affected in the least the output of the shipbuilding of this country. The amount of tonnage afloat, whether under our flag or any other flag, is the measure of the prosperity that is carried on in the shipyards of this and other countries, and therefore it is immaterial whether those ships remain in and with Germany, or whether they sail under our flag, because they affect the total tonnage, and that tonnage at the moment is in excess of the world demand, and therefore we have the depression in shipbuilding, and not because these ships happen to be flying the English flag

Reference has been made to the doctrine of Free Trade. I stand here an unrepentant Free Trader, and I submit with all respect that the principle of this Bill does not run counter to a strict adherence to Free Trade, because the desire of the Bill is not protective, but it is to get reparation in money, and goods, and payment out of Germany. Two things surely will happen—either Germany will not send the goods, in which case it makes practically no difference to this market for the time being, but it ruins her, and under that pressure and the penalty of that pressure the feeling is that she will see the error of her ways and come to reason. On the other hand, she may send the goods, and then it is suggested that we will have to pay the price, but surely the German trader is no fool. Surely to-day the German trader is getting from this market the utmost price he can secure, and, if so, the fact that we put on an addition of 50 per cent. for reparation will not enable him to increase the price of the goods he sells here, because, on ordinary commercial lines, he is to-day getting the highest price he can get out the person in this country, the merchant or consumer, who buys, and, that being so, he will get neither more nor less out of that trader when this Bill passes. Therefore I submit that, realising that all trade is done for the good of each particular participant in the transaction and not out of the lap of charity, all trade being on that basis, this 50 per cent. will not make any difference whatever, except that it will mean, in so far as the goods come here, that we shall recover so much towards our reparation.

It has been suggested that the Germans will find loopholes out of this difficulty, but surely the experience of the last 2½ years has been that she is only too anxious to find loopholes from whatever scheme is put forward. It has been suggested that patience should be shown, but surely the Government and the Allies on this question have been over-patient, and have exhausted all the patience which was necessary if Germany was really willing to play the game and foot the bill, and I am convinced that it is necessary as a demonstration—I think it is more a demonstration than anything else—to show that we as a nation are determined in this matter to see that the Germans stick to the Treaty of Versailles, and that we are not going, as a certain small section in the community and in this House wish, to see that they are let off, and that those who were the losers in the War are going to come out victors in the end. It is not out of any question of vindictiveness, but it is out of the question of justice, and if we want to make sure that this was a war to end war, we want to drive it home to them that they have lost, and that it does not pay for them to engage in war and endanger the peace of the world. If we let them off and wipe out the whole of the debt, they will turn round and laugh in their sleeves and say, "We in the end have come out victors, and not losers" Therefore, I hope the advice to the Labour party will be followed, and that no Division will be taken, in order that we may present a united front to the whole of Germany. [HON. MEMBERS: "Hear, hear!"]

I am not afraid of Tory cheers if they are in a cause in which I believe; even Tory cheers may be in the right cause sometimes. To my mind, it is essential that we should show a united front to Germany in this matter and show that we are determined that they shall honour the treaty which they have signed. No-one can say the Prime Minister has not striven to the utmost to arrive at a friendly settlement, but after all the patience and consideration that have been shown have been turned down time after time, it is time we took our stand, and I believe that this Bill, if carried by a united vote of the whole House, will do more than any one thing to demonstrate that we are determined and really mean what we say.

I want to say a few words and to touch on a point which I have not heard discussed in this Debate to-night. I realise as well as anyone the great difficulty in the way of deciding on the form in which Germany can discharge her debt to this nation, and I certainly stand here determined, so far as it lies in the power of an individual, to exact to the last farthing the amount that Germany can pay in redemption of her debt. I shall certainly support this Bill, because, difficult as the case is, I believe that this Bill will be the best means of making Germany redeem the debt in so far as she is able to do so. I feel convinced of that, and I think it is our duty as Members of this House to see that the Bill passes, and without a division, because I think it will have a far greater effect on Germany if we show ourselves to be—all parties—united in this measure. It is up to all of us to consider what our position would have been if Germany had won the War, and from my knowledge of Germany—and I think I know that country very well—I have a very shrewd idea that we should have had to pay everything that we possessed, all our Dominions would have gone, and indeed all the treasure of this country would have gone, let alone all the invested money which we could show, or which they could find out that we had. This country would have been skinned, and I have not yet heard anyone suggest that the art treasures in which Germany is rich should be left immune. Germany has got in every town that I have ever visited—and I have been through a good many of them—in their museums and galleries priceless pictures, tapestries, porcelain, china, and other works of art. Besides that, in Germany the system of forestry has for generations been carried out on sound and orthodox lines. The land has been planted from time to time, and the timber has been cut in regular rotation when it was ripe and fit for cutting. Germany possesses, I think, a finer supply of timber than any other European country, and certainly more than Russia to-day in the state in which that country is now, and I think we might get a considerable share of the annual indemnity from the timber of Germany, which would be very much appreciated in this country. The question of the art treasures of Germany is really worthy of consideration. They have been such collectors and for so long that the value of their collections is very well worth considering. I know perfectly well that all our art treatures at the South Kensington Museum and in all our museums in this country would certainly have been denuded by the Germans of everything of value. We ought to do exactly the same by Germany as they would have done by us if they had had the opportunity. It is a lamentable thing to hear hon. Members of this House, when this measure is under discussion, showing their affinity with Germany and evidently, by the words they use, wishing to show that they have a fond affection for her, and that they are only anxious to let her down as easily as possible. That is a great mistake, because if it does nothing else it puts heart into the German nation, and they think that they have friends in this House who are only too ready to see that they are let down easily. I want to see the House united, and despite the difficulties that are to be overcome in the method of payment, I want to see all parties put their heads together and see to it that Germany does pay to the uttermost farthing of which she is capable.

The importance of this subject is so great that I feel sure I am expressing the opinions of hon. Members when I say that probably no one will regret that the debate has been prolonged rather beyond the original hour at which it was intended to close it. I totally disagree with the remarks which have just been made by the hon. and gallant Member opposite to the effect that it is lamentable that hon. Members; on this side of the House should indicate, as he put it, their affinity with Germany. I am quite sure that is not our intention, and it is no part of our desire. Our attitude towards this Bill and all kindred measures was accurately summarised by my right hon. Friend the Member for Derby (Mr. Thomas) when he said that we wanted to see Germany pay the fullest possible reparation for war wrongs. That is very different indeed from tying ourselves to a doubtful and dangerous economic proposition. That is really the problem which confronts us in this Debate. From beginning to end of the whole discussion to-day we have been considering the effects of the indemnity and trying to work out a method of getting an indemnity in a way which will not injure the recovery of our own industry and commerce in Great Britain. At this late hour I am going to select only two parts of the discussion, because so far they have not been quite adequately covered, and offer one or two observations for the consideration of the House.

There is, first, the position of neutrals. I believe that the difficulty of the possible diversion of trade through neutrals has been both exaggerated and underestimated in the course of this Debate. There cannot be the slightest doubt that if, under the terms of this Bill, it appeared to Germany that she could make her position easier by diverting trade through neutrals, she would try to do so. The two facts that we require to keep in mind regarding the position of neutrals during the War are, first of all that, by the very circumstances of the War itself, a very great deal of European commerce was directed through neutrals and, in the second place, it is greatly to the interest of neutral countries at the present time to get as large a measure of continental trade as they possibly can, or any kind of trade at all, because of the economic conditions with which they are confronted. A great deal of the commerce of Europe that was diverted through neutrals during the War will remain substantially in those channels, and I am therefore compelled to ask whether one of the indirect results of this Bill will not be to keep that trade in those channels and in the long run to injure our position as the great carrying nation of the commerce of the world. Under the second head it seems to me that hon. Members have not quite estimated at its full strength the desire of many of the neutral countries at the present time. Many hon. Members have spoken as if all neutral countries in Europe had done well out of the War; that they had made very large profits indeed, and that there was no particular desire that we should be tender where they are concerned to-day. It is quite true that neutrals have done well, but it is a remarkable fact that there is hardly any neutral country in Europe which has not a tremendous burden of debt, and it is striking from many points of view that the position of many non-belligerents and strictly neutral countries is far more difficult economically in some respects than the position of some countries which were actually at war. That is borne out by most of the official reports of the time, and we must be very careful now in regard to the effects of this Bill in the possible diversion of trade through neutral countries. I still feel that it will be to the aid and certainly to the interest of Germany to get as large a measure of direct trade as she possibly can. If, however, she has the slightest chance of taking advantage of any neutral countries, and some of the neutral countries would be only too keen to oblige her, then we may find in the last resort that this Bill does not confer upon us the advantages which many Members hope to-night.

A further consideration of an important character in this debate is this. Suppose we agree, as I think practically all hon. Members are agreed, that Germany must make reparation, the problem which immediately faces us is the establishment, as I would put it, of such a Germany as can pay within the shortest possible limit of time. I have never met any student of economics, or, indeed, any hon. Member of this House, who took the view that this country had anything to gain by spreading an indemnity to be paid by Germany over 40 or 50 or a very long period of years. That can only contribute not merely to the economic but also to the moral degradation of a great people. It is not to our advantage, and certainly not to the gain or profit of any indemnity we expect to reap to adopt that course where Germany is concerned. What we want to do is to give Germany the maximum chance of recovery now in order that she may make reparation. The position of Germany has been described by some hon. Members as one of prosperity and by other hon. Members as one of despair. I prefer in this Debate to-night to fall back not on any German statement of the position. I am perfectly prepared to take the last published report of our own Overseas Trade Department, which dealt with the economic conditions in Germany as recently as December, 1920, and that report indicates that, while it is quite true that certain firms are enjoying prosperity in Germany, while they are paying comparatively large dividends, these firms are for the most part in rings, cartels or other forms of trust operation, which you cannot take as a fair test of German industrial power, because they represent a very large monopoly in the German State. Remuneration at large in Germany is terribly depressed. Any hon. Member who counted upon a low cost of production from that point of view is surely under the gravest error at the present time. It is no gain, and it can never be any gain, to this country to have a depressed industrial population in any part of Europe, and, what seems more important, it is perfectly plain that, even in existing conditions in Germany, there is a determined movement, as in other countries, in favour of the establishment of a standard rate, and before many years are over that movement will be carried to a state of completion which will establish, probably, uniform conditions so far as a large part of European labour is concerned. I trust, therefore, that no hon. Member will attach undue importance to these considerations. Again, some hon. Members have said—and I was, if I may say so with respect, amazed at the statement of the Chancellor of the Exchequer on that point—that Germany has not imposed taxation to anything like the extent to which taxation has been imposed in this country. I confess I am utterly unable to understand that statement. In our own Official Report of the Overseas Trade Department referring to December last, there is a specific statement that, in the current financial year, after certain steps have been taken, the total national income of Germany will be taxed to the extent of 43 per cent.

That statement in our own Report was actually much higher than one of the most recent statements made by Dr. Simons, in which he dealt with the question of taxation in Germany. All these things go to show that, while there is a certain measure of prosperity of a more or less fictitious kind in Germany, there are also great trade difficulties, and I am very doubtful indeed whether, even if they set themselves to do so, the German traders will be able to surmount the handicap of the 50 per cent. deduction. If this Bill were a method of obtaining payment of the indemnity, which, in my judgment, would not hinder our own commerce or trade, or the course of employment in Great Britain, I should be the first to welcome it, as I want to see the indemnity paid. My conviction, briefly and simply stated, is that over a course of time, since the Armistice was concluded, we have lost great opportunities of arriving at a clear and definite decision as to what Germany should pay. I am willing to admit that, where you have Allies banded together, with perhaps rival or conflicting interests, it is very difficult indeed to get a decision, but the course which probably recommends itself to an increasing number of minds in this country to-day is that we should first of all clearly define the amount, that we should, in the second place, ask Germany to pay within the next five or seven years a sum which investigation shows to be within the limits of her capacity, and that we should then defer for settlement later, after examination at the end of seven years, the other portion of the indemnity, which must be forthcoming before we are able to say that Germany has made good the wrongs she inflicted upon mankind in the War. That I believe to be a far sounder policy than that contained in this Bill. It is a policy which I recognise requires far more time and consideration than we are able to give it to-night. I only recommend it now because I feel that it is the one that the circumstances require, and because I am satisfied that, even if this Bill brings a certain proportion of revenue, it will only bring that revenue to Great Britain at a cost to our trade and commerce out of all proportion to the reparation we get.

I have listened to a most interesting Debate, and I have seldom listened to one where the commencement of the speeches has been so much in harmony, and the end seems to raise so much doubt. My hon. Friend the Member for South Hackney (Mr. Bottomley) is too late with his proposal. I think the time to have entered Berlin was the time of the Armistice. Having said so, I think he is a little bit out of time in suggesting that we should go there now, because the cost is beyond all computation, and, so far as the suggestion of the hon. Member is concerned, even on that account, I would not be prepared to support him at the present time. I have risen more particularly to present a point of view which, I think, has been ignored in most of the speeches to which I have listened.

I do not think there is a single Member of this House who would say, honestly and fearlessly, that he is in love with these proposals—[HON. MEMBERS: "Hear, hear!"]—but those who cheer are the most destitute of anything to carry out their pious intentions. Not even the loudest who cheered a moment ago dare get up in this House, and say that he is prepared to forgive Germany her debt to this country, or as much as she can pay towards it. It is all a question of degree and methods. With reference to the proposals themselves, I am glad to hear that the Labour party, that is, the official Labour party, are not going to divide upon this. My reason for being pleased is that because, on the last occasion, I was in considerable doubt why some of their spokesmen seemed to use this particular question as a method of jeering and sneering at France. while they offered to Germany honeyed and sweet words. I was amazed at the right hon. Gentleman the Member for Derby (Mr. Thomas). He asked, was this a French peace or a British peace? The Prime Minister said it was neither, but that it was an Allied peace. I remember the speeches delivered by the right hon. Member for Derby in the days of the War. No man was louder in his denunciation of Germany and her atrocities than the right hon. Gentleman. Yesterday I took the trouble to read some of these speeches, and, incidentally, to glance over a report of the International Conference at Berne. I somehow got a glimmering of this tenderness of the right hon. Gentleman for Germany, because I discovered in reading the report—and there were various nationalities there who had been engaged in the War, enemies and others—that the only delegate of any nationality who received the praise and thanks of the German delegates was the right hon. Gentleman the Member for Derby (Mr. Thomas). He made a statement which, when I read, simply flabbergasted me in the light of his war speeches. He said:

Yet we have this spokesman of that group attending the last Conference at Berne, and telling the Germans, as well as the French, that the responsibility for the events of the last four years may be well left to the historian of the future. Herr Müller was the German delegate, and he offered his thanks for the words of conciliation and reconciliation of the right hon. Gentleman.

But there happened to be another, M. Thomas, of France, there, and with all due respect to the right hon. Gentleman opposite, he knows more about the Internationale. He was a respected member of the old Internationale long before the right hon. Gentleman the Member for Derby was even in politics. M. Thomas was closely allied with the Internationale, and was one of its trusted and most respected leaders. What did he say? He did not say that the matter would be left to the judgment of history. He said, "My confidence in. you is not yet complete." He was speaking to the Germans; so that I can well understand now, having listened to the speech of the right hon. Gentleman opposite, and having read his speech at Berne, at the encomiums thrown at him by the Germans, and the opposition of the French, why he has come forward and seems to assume that France was responsible for these proposals, and must take the blame for whatever happens.

I would willingly join with any section whom I thought were honestly seeking the peace of the world. But I have definitely come to the conclusion that the mentality of Germany has not changed one iota. At Stockholm the German delegates tried to throw the blame for the War, not upon the German nation, but upon others. Even at the Berne Conference they were reluctant to admit, in fact all the quarrel at that Conference amongst the former enemies and Allies centered round the question of who was responsible for the War. I have got some statements here which I will read, showing that at the present moment Germany does not believe she has been defeated. She is disappointed. She thinks she was cheated out of victory, and her present frame of mind is as brutal and tyrannical as it was in 1914. I have here, I say, some of the methods of German propoganda. Every hon. and right hon. Gentleman, I daresay, has received a copy of this matter dealing with Upper Silesia. We find in these documents where the German to-day has the power of inflicting wrong. We have recorded the methods whereby Germany is trying to prevent a fair plebiscite upon the question, and endeavouring to seduce and tyrannise the people of the territory in voting for the secession of Upper Silesia to Germany. This method is only this week being fortified by trainloads of out-voters who are leaving Germany to take part in the plebiscite that is taking place in Upper Silesia at the week-end. What is her attitude towards that? Is it that of a vanquished nation, of a nation which is sorrowing for its sins of omission and commission? Not a bit of it. They have got a new Hymn of Hate in Upper Silesia at the present time. This new Hymn of Hate will probably please the smiling gentleman opposite, who seems to think more about his German comrades than his suffering British friends. I hope this will please him, for this is the new Hymn of Hate that is being spread broadcast throughout the length and breadth of Upper Silesia by the agents of Germany, who are sending their trainloads of out-voters to take part in the plebiscite this week. He has got a musical voice, and will be able to repeat it perhaps better than I can: whelming proofs of Germany's innocence are within your reach. Will you followers of Christ summon up sufficient courage, sufficient moral and mental honesty, to defy the immoral maxim: "Right or wrong, my country!" It goes on to appeal to the churches of this country, showing the bitterest spite that ever could come from one nation to another. And yet we are asked by certain gentlemen to deal leniently with Germany. So far as I am concerned, I think the burdens we are imposing are exceeding light. I wish they were heavier. The hon. Member who spoke last gave some statistics as to the burden of taxation. He gave us percentages, and I asked him for the amount per head of the population. He was unable to give it. I believe the figures are that at the present moment we are being taxed £22 per head, or thereabouts, while Germany's weight is £2 6s. per head of her population.

We are at the present time as a nation called upon to pay in the neighbourhood of £500,000,000 for war damage and the misery caused by the great conflict, while the total amount that is being asked from Germany is £176,000,000. I say to my hon. Friend that when Germany's individual taxation approximates to £22 per head, as it does in this country, instead of £2 6s., it will be time to say a good word for that country if one is then needed. I want also to refer to the difference of language that is being employed by the Germans to-day and by the Germans when they thought they were going to be victorious. In November, 1914, Maximillian Harden, who was certainly a great propagandist of Germany's claims, said: "We do not stand before the judgment seat of Europe. We acknowledge no such jurisdiction. Our might shall create a new law in Europe. It is Germany that strikes." In March, 1921, Herr Ebert spoke in a different key. He said:

"We are defenceless. Nevertheless we can call out so that all who recognised the voice of righteousness may hear. Right is being overwhelmed by might."

Those two extracts are both from Germany. One of them shows the truculent German who thought that victory was coming to his country. The other shows the whining German who thinks that by putting on the spirit and temper of Uriah Heep he can delude the British and allow his countrymen to escape their just responsibility for the crime they have committed against this country. I am indeed glad that we are going to have, I hope, a united vote. Everyone who reads the papers knows that Germany by her present attitude is trying to sow the seeds of disunion between the Allies. Division amongst the Allies is Germany's opportunity. If I wanted to confirm that statement I could refer to the letters of one of the greatest internationalists, from the Socialist and Labour standpoint, that this country has ever had—Adolf Smith, who for 30 years was the official reporter for every Labour and Socialist conference. He has declared in some of his recent letters to the "Times"—and he has been in France as well as in Germany—that the German of to-day is the German of 1914. Before the War the German trade unionists came to the International Conferences, and said, "Do not ask us to vote on questions against war, because if you do the German Government will sequestrate our funds and break up our union," and, believing in the honesty of the German trade unionists, they were relieved from the obligation of voting for the strike against war because of the penalties which they said would fall upon them. But as soon as war was declared the Germans marched as one man at the call of the Prussian military system and with one or two exceptions stood by the Government. He added—and he knows the mind of Germany better than the new students who have come into international politics within the last year or two; he goes back 30 years with an accurate knowledge of the mental attitude of the German—that the attitude of Germany in 1914 is the attitude to-day. If we accept their policy we shall have lost the War, the peace will be on the side of Germany, and we shall have to suffer all the penalties of the struggle. This is a complicated Bill. I would that there were some man—I care not on what side of the House he sits—who could give us proposals that would meet the complications of the situation. The Government has asked statesmen on both sides. They have asked the leader of the Liberal party, and he stands helpless. He can only express his fears and his doubts. They have asked the leaders of the Labour party, but they also stand in the same dilemma. While they may oppose the Government's proposals there are no alternatives, with the exception of that of my hon. Friend the Member for Hackney (Mr. Bottomley). As I mentioned, it is my honest conviction that his proposals are too late. I think that the only proposals that hold the field at the present time are the proposals of the Government, and I solemnly believe that if there is a Division in this House upon those proposals it will be a message to Germany: "Go on dallying and hesitating. The longer you do so, the more you will divide the Allies. You will be victors although you have been conquered on the field."

If I differ from the hon. Gentleman who preceded me, I hope the few remarks I am going to make will be heard with patience. Nearly two years ago in this House I rose at about this time and moved the rejection of the Bill dealing with the Treaty of Versailles. I was not the only Member to vote against it. I think seven of us went into the lobby. I think it is recognised now by all parties even in the French Chamber that the Treaty of Versailles has been unworkable. Recent negotiations in Paris between the British and French Governments have proved that this was so, and the proposal in this Bill drives the proof further home. The Treaty of Versailles was, as I say, unworkable. Every economist of note admits that. And I make bold to prophesy that this Bill will be unworkable. I will not use my own arguments to support this view. I will take a remarkable passage from the Prime Minister's speech of the 17th February. The Prime Minister made a very important speech in answer to a Motion of my hon. Friends of the Labour party on unemployment. The speech struck me as so remarkable that I supported the Government on that occasion. I think I was the only Member on the Opposition who did so. The part to which I wish to draw the attention of the House is this: I wonder how many hon. and right hon. Gentlemen who spoke to-night would go down to a meeting of unemployed in one of our great cities and tell these hungry, desperate, sullen men of the great things to be done by this Bill in making the Germans pay. I venture to say that in most cases they would be howled down, and rightly so. Do for heaven's sake let us get down to practical politics. The discussion to-day has filled me with utter despair. I do not wish to detract from the eloquence of hon. Members. As the hon. Member who has just sat down (Mr. Seddon) said, there has been no alternative suggested, and hon. Members much better qualified than I am have demonstrated the unworkability of this Bill. We have had hon. Members speaking for the commercial community pointing out the great disadvantages which this Bill will confer upon British trade and commerce. The next passage from the Prime Minister's speech to which I ask the attention of the House is this: mics, hard facts, realities, falling trade, financial stress in this country, and consequent misery among a million families, many of the heads of which fought in the War and helped to win this great victory, which is turning out to be like Dead Sea fruit in our mouths. This Bill, with its system of licences, espionage, Customs regulations, commercial attaché reports, and consular reports from abroad will hinder and hamper business men in restoring that opportunity so absolutely necessary to our national well-being. The Prime Minister went on to describe the system of bills of exchange that kept the wheels of industry and commerce going. When he was Chancellor of the Exchequer at the beginning of the War—

We are always asked, what are our alternatives? I spoke last week and ventured to put forward some alternatives. In the first place, I do not think we can get large sums from Germany. I wish we could. I would like to see the widows and orphans of merchant seamen who lost their lives in the War receive recompense. They were told that they would receive first attention the moment Germany made reparation, but although Germany has paid over several hundreds of millions they are still waiting. The alternatives I put forward are, that the most suitable reparation the Germans could make is in the form of labour in the Communes of Northern France. That would be the most beneficial form of reparation we could get, if Germany sent her workmen into those desolated areas and re-built the roads and railways and towns which they destroyed.

It will not help us. We are not going to get much more help. Coal and ships we have received from Germany, but they have done more harm than good. I feel most strongly of all for France. We ought to forgive the French their debt to us. That would be generous. It would do something to relieve the financial situation in France and it would relieve Northern Europe generally, and ultimately relieve this country. It is a practical, solid suggestion that I put forward as an alternative. I hope there will be another conference as soon as possible. I have no belief in this Bill. I believe the commercial community will insist on its being so modified that it will only probably exist on paper. I do not think the commercial community are going to stand another system of licences, and that will lead us to a new conference, and when the new conference meets together I hope we will really try to come to some arrangement with Germany for getting rid of this great problem by consent. It is no use treating them any longer as criminals in the dock. Von Simon and his colleagues are not the people who made the War. The Imperialists who made the War are out of power, but if they ever come back it will be because of Bills of this character and speeches such as we have had to-night.

I have risen for the purpose of expressing the point of view of the working classes so far as this question of Germany is concerned. Hon. Members who talk about exacting reparation from Germany are not miles removed from those who occupy these Benches, except that we are bound by the comradeship of suffering to at least claim on behalf of those who have to produce the wealth that will pay the reparation a minimum standard of decency and comfort. I am aware that big businesses in Germany are declaring big dividends. But what speaker in this Debate has ventured to deal with the state of starvation to which working men are reduced in that country? Do hon. Members expect they are going to get a continuous effort from German working men with any degree of skill to pay this indemnity while they are subjected to the conditions which are now imposed upon them? We on these Benches believe you will get greater return if you make some real effort to penalise those who are profiteering in Germany, while you give those who are willing to produce a decent measure of subsistence for the service they are rendering. Are hon. Members aware that although the cost of living in Germany has gone up 15 times, wages have only risen five times? Are they aware that out of every £25 earned by the German working man he pays 10s. in taxation? Are they aware that the highest grade workmen in Germany are earning 12,500 marks per annum, whereas, according to official statistics, 15,000 marks are required to maintain a minimum standard of decency and comfort? Do hon. Members believe that skilled working men will continue to work in order that the indemnity may be paid when condemned to live on a standard 3,000 marks below what is admitted to be the proper minimum standard?

It is all very well to twit the right hon. Member for Derby (Mr. Thomas) with expressions he used at recent Socialist conferences. But at that time those who were responsible for the War were in power in Germany. It was repeatedly declared that the Allies would not discuss terms of peace with those then in authority. The German people thereupon overthrew the existing Government and those who are in power to-day are miles removed in outlook and general points of view from those who were in power at the outbreak of war. The latter have gone never, I believe, to return, and in their place you have a body of men backed by the working classes who, if treated with the consideration to which they are entitled, will see to it that their rulers do pay an amount which they regard as a just reparation for the crimes committed. But you will not get the workers of Germany to work for the next 40 years under conditions of starvation such as would not be tolerated for a single day in this country. There men are going to work in the bowels of the earth on four slices of bread and dripping for the day's work. Meat they get on only one day a week. Do you think you are going to get a good return under these circumstances? Obviously you will not. You must go for the big business men, you must get at their profits, reduce them if you like to an absolute minimum, but whatever you do exact from the nation be sure that, in the first place, proper provision is made so that the workers who are producing the money shall have at least a minimum standard of decency and comfort These vicious exponents of revenge fail in their objective because of their very viciousness. You formed the Labour Section of the League of Nations, and you embraced every country except your greatest industrial rival, so that, whilst we are committed to a 48-hour working week, our greatest industrial rival, being excluded from the League of Nations, is not bound, as regards either her men or her women, to the labour conditions of that League, and they can work 50 or 60 hours a week; and you think you are doing good business. If the advocates of industrialism and private enterprise have no better conception of how to exact from the workers of Germany the best possible method of reparation, it is time that they turned to other sources.

I should not have taken part in this Debate if it had not been for the speech of the hon. Member who has just sat down. I think that a Debate of this description ought not to close on quite that note. My mind goes back to the day, in the early part of August, 1914, when the Foreign Secretary, Sir Edward Grey, made his speech in this House. I remember the feeling of disgust and shame that passed over the House when we heard that, with the remarkable unanimity of opinion that was behind her Government, Germany had defied all Treaties, had invaded the territory of Belgium, and had begun her policy of mutilation of France. If one could only have transposed one's self from the one period to the other, and have heard the two speeches to which we have just listened, one would have wondered whether one were in the same world, let alone in the same country. We are told that there is an alternative, but the alternative is worse than the proposal. The best that the hon. and gallant Gentleman the Member for Hull (Lieut.-Commander Kenworthy) can suggest is that we should force the German Government to supply France with labour.

It is a moral certainty that that could only be done under some form of compulsion, and, although the hon. and gallant Gentleman may advocate it, I am extremely doubtful whether the official Labour party would support the compulsory service in a foreign country of labour taken from another country. Therefore, we may take it for granted that that is quite out of the possibilities of the situation. I would ask the House to consider for a moment the broader issue. I am not going into the petty details, that are only brought forward as catchwords to trip up the Government in the case that they are making, but the broad, salient feature of the case is that we, a country with an Army not big enough decently to police our Empire, with a peaceful population, no compulsory service, no extraordinary preparation for war—a community living by trade and almost entirely devoted to the pursuits of industry—we were threatened, five or six short years ago, with practical extermination by a State that is now called upon at least to make some slight reparation for the damage that she has done and the crime that she has committed; and to pretend that the mere exclusion of the Kaiser from the throne exonerates Germany from the consequences of her acts is absolutely absurd. We attended trade congresses and peace congresses at Berlin and Geneva and The Hague and in France, and practically all over the world, and tried to persuade Germans that their Government was really aiming at war and the domination of Europe. We got some half-promises from the Socialists and Labour movement of Germany, but the moment the Kaiser decided to move his legions the most fanatical supporters of the German Government were the men whom we thought our friends. The German Government could not have carried on without their support. The only reason that I and my friends ever entered the War and donned the uniform again was that we knew perfectly well that these people for 40 years at least had for planning the military domination of the whole of the States of Europe, ourselves included, and if Germany were to escape responsibility for her deeds now, if it were known that a great State could plan and scheme to destroy and dominate its neighbours and then when she has failed and we alone have a million dead, all that is required is to trot out some idea of Christian principles and brotherhood and "let us be friends together," that is merely giving an incentive to the next ragamuffin to come along and do the same. There is not the slightest doubt about it. If Germany escapes the responsibility of her acts in this great world drama through which Europe has recently passed, would it not be almost an invitation to another set of men of similar character to repeat the offence? While not wishing any injustice done to the German people themselves, there is nothing upon which one can fasten in the public agitation or the propaganda of Germany at present, not even amongst the German working classes, that shows that they have the slightest feeling of regret for the crime they have committed on the human race. Therefore under these circumstances, whether I agreed with these commercialists who have criticised the proposals of the Government or not, I would not care a rap whether they can put it into practice or not, but just as we stood behind the Government in resisting force six years ago, so it is our duty as Britishers to stand behind them now when we demand that the criminals at least shall give some recompense to humanity whose action and whose position they have outraged.

Question put, "That the word 'now' stand part of the Question."

The House proceeded to a Division.

Lord Edmund Talbot and Mr. Dudley Ward were appointed Tellers for the Ayes, and Lieut.-Commander Kenworthy was appointed Teller for the Noes; but no Member being willing to act as the Second Teller for the Noes, Mr. Speaker declared that the Ayes had it.

Bill read a Second time.

Bill committed to a Committee of the Whole House for To-morrow.—[ Mr. Chamberlain .]

Supply

Considered in Committee.

[Sir E. CORNWALL in the Chair.]

Civil Services and Revenue Departments Supplementary Estimates, 1920ߝ21

Revenue Departments

Post Office

Motion made, and Question proposed,

"That a Supplementary sum, not exceeding £2,672,500, be granted to His Majesty, to defray the Charge which will come in course of payment during the year ending on the 31st day of March, 1921, for the Salaries and Expenses of the Post Office, including Telegraphs and Telephones."

The original Supplementary Estimate was for £33,000,000—

Are we to have the advantage of the presence of the Postmaster-General during the discussion of this very important Estimate?

I regret to say that my right hon. Friend has been ill for some time and cannot be present to-night. The original and Supplementary Estimates for salaries, wages and allowances were £33,859,838. The revised Estimate is £34,997,338, and the additional sum required is £1,137,500. The principal item in this total is an additional sum of £1,000,000 required for provincial establishments. This is due partly to the growth of work of which there was no accurate knowledge when the Estimates were framed owing to the suspension of the annual counts of correspondence, partly to improvements which have been effected in the attendances of the staff by reducing the number of separate attendances during the day's duty and partly to the return of men from the Army being slower than was anticipated, with the result that the civil pay of men serving with the Colours continued during the early part of the year as well as the payment of their substitutes at home. These factors together account for about £800,000, and the increase, though large, represents only 3 per cent. of the total. It must be remembered that when the Estimates were framed in December, 1919, some 15 months ahead, it was impossible to forecast with accuracy the volume of business during the year 1920–21. Trade and industry were still in the transition stage from war to peace, and trade activity in the earlier part of the year was higher than was anticipated. The remaining £300,000 is due principally to the provision of pay for a large number of the smaller classes. Negotiations were continued for a long time with regard to the amount of pay in reference to these various classes, and, therefore, when the original Estimate was made it was impossible to know exactly what amount was required. Under Sub-head C, "Rent, Office Fittings, etc.," the original and Supplementary Estimates were £553,200, and the revised Estimate is £593,200. The additional sum required is £40,000. This is partly due to an increase in the price of fittings with regard to gas and electricity since the Estimates were framed. With regard to Sub-head E2, the original amount was £1,070,000, and the revised is 1,170,000. The additional sum required is £100,000. This refers to the conveyance of mails by road, by horse and motor. As everyone knows this has increased in price. There is a large number of these contracts. They are on very short notice, and it is hoped that in a short time the charges may be reduced considerably. Sub head E3, "Packet Services at Home," shows an increase of £40,000 from £158,450 to £198,450. This is due to the payments to be made to the Macbrayne Company for the steamer service to and from the Western Islands.

I think that that does cover the Western Islands. There were long negotiations, and there were repairs due over several years. With regard to Sub-head G1, the original and Supplementary Estimates wre £677,600, and the revised Estimate £740,000; and the additional sum required is £63,000. This is composed of two items in particular. One relates to bicycles and motors, £36,000 and £20,000 respectively, and is due to delay in delivery. The Post Office had great difficulties in regard to deliveries, and similar difficulties have been experienced by a large number of trades throughout the country. The balance is due to rises in prices not being provided for correctly. The Estimates now are 10 per cent. above the 1919 price, and in some cases the increase has been as high as 38 per cent. The balance, about £7,000, is due to the purchase of mail bags from the Prison Commission. On this there will be a saving next year. The bags were delivered unexpectedly early, and the Commission asked us to take delivery of them. With regard to sub-head G 2, the original and Supplementary Estimates were £630,500, and the revised Estimate £750,500; and the additional sum required is £120,000. Of this total £66,000 is due to deliveries being delayed for 1919–20 on account of abnormal trade conditions. The balance is due, principally, to the cost of tailoring, which rose to a great extent. It was quite impossible to foresee the rise. With regard to G 3, the original and Supplementary Estimates were £261,335, and the revised Estimate was £373,335; and the additional sum required is £112,000. £90,000 of this is accounted for by payment of delayed claims in respect of allowance forms, forms for the Admiralty and War Office for pensions. The balance represents an increase in the cost of the manufacture of stamps and stationery and postal orders, which was greater than had been foreseen, under Sub-head I 1, the original and Supplementary Estimates were for salaries, wages and allowances, £4,073,120, and the revised Estimate was £4,343,120, and the additional sum required is £270,000. The arrears of maintenance of the telegraph and telephone systems were considerable during the War, and it will take some time to make them good, but although the sum appears to be considerable on the Estimate, it is comparatively small having regard to the necessary amount of expenditure for this particular item, which is a matter of very great importance, as everyone knows. In regard to Sub-head L 4, the original Estimate was £212,000, and the revised Estimate is £312,000, the additional sum required being therefore £100,000. This is principally due to the increased poundage of the rates due to the local authorities for rates on wires, etc.

There is one other item of importance which I should mention, and that is in regard to the purchase of the Direct United States Cable Company's cable This cable was laid in 1874ߝ75, and its total length is 3,197 miles, of which about one-half has been replaced by new cable. The Direct United States Cable Company, which is, as the Committee no doubt knows, a British company, leased its cable to the American Western Union Company in 1911 for 99 years, but difficulties have arisen with the latter company, and the cable became interrupted in 1917, and the Direct United States Cable Company was unable to effect a repair in the 19 months allowed by the lease. Therefore it fell through. The Western Union Company thereupon exercised their right to terminate the lease. After they had had some litigation in regard to the matter, we had very long negotiations, and on the 4th November we purchased the cable for £570,000. This sum did not only cover the cost of the cable itself, it also covered the stock of spare cable, worth more than £100,000, and the three cable stations, with apparatus and furniture. I daresay the Committee would like to know what was the reason for the purchase of the cable. It was felt absolutely necessary that we should have a reserve line for the Imperial cable, out of which there is a very substantial profit being made. It was realised that there was serious risk in conducting this important service with only one cable, and a new cable would cost more than £1,000,000. Therefore we bought this cable for £570,000. We considered it was a very wise purchase. In these circumstances we purchased it from this company to which I have referred. The cable was transferred to the Post Office on 4th November last, but as the Imperial cable can carry the traffic in cables for which it was intended we let this cable to the Western Union Company for a shorter time for a rental of £57,000 a year. There is every reason to believe that this purchase will be very satisfactory and profitable to this country I have endeavoured to give a short and frank statement in regard to these items, and I shall be very glad to answer any questions any hon. Member cares to address to me with regard to them.

The Post Office Vote is an important and big Vote. As the Committee are aware, this is a nationalised service, run by the State in the interests of the nation. That being so, I know that hon. Members are rather chary of criticising certain aspects of the Post Office Vote. [HON. MEMBERS: "No, no."] I am, for a good reason. I remember a certain number of years ago when I was in this House that I criticised certain aspects of this Vote and the wages paid. There was an election shortly after. At that election it was an understood thing between my opponent and myself that our election addresses should go out on the same day. They were posted on the same day, but mine were delivered two days late because, I suppose, I had attacked the Post Office. [HON. MEMBERS: "Shame!"] This evening, at any rate, I am going to venture again to drop a few criticisms on wages and other items paid to the staff of the General Post Office. I have taken the trouble to turn up the Post Office Estimates for 1914–1915. I find that in 1914–1915 under headings Al, A2, A3—which is left out here—it was only a small sum, £19,590—A4 and A5, the total sum the country then paid was something like £15,000,000. Now we have to find something like £35,000,000, and if we add, as we ought to add, a sum of practically £8,000,000 in bonus, we are paying £43,000,000. That is to say, pretty nearly three times as much under these establishment items Al, A2, A4, and A5 as we were paying in 1914–1915. I daresay that other hon. Members like myself got the other day from Mr. Stuart Bunning, who, I think, is a great man at the Post Office, a long circular setting out why the Civil Service had the right to war bonus and more than war bonus. Even supposing that all those employed in the Pest Office were civil servants in the strict sense of the term, that is to say, supposing they were men who say, "Under no circumstances will we strike or create trouble, but because we do that you must give us better terms than you would give to the ordinary workman," there would be something in it. As a matter of fact, we now know that in the Post Office itself there is a very great movement on the part of certain sections to have the right to strike. Therefore that excuse or appeal for sympathy is taken away. We find that we are paying three times the salary, but the cost of living has not gone up by three times, and I want to ask the right hon. Gentleman if he does not think the rank and file of the Post Office are not being overpaid.

I would like to call attention to uniform. The price of clothing is taken into con- sideration in arriving at the Board of Trade figures of the cost of living. As these people get a uniform, that is something in the nature of an extra bonus. There is an enormous rise on item G 2 (uniform clothing), which has risen nearly three times since 1914–15. I would like to get the reason, at any rate, for the great increase in wages.

I should like to congratulate the Assistant Postmaster-General on his speech and also congratulate the Post Office on having the right hon. Gentleman to speak for them. A short time ago the Postmaster-General informed this House that the telegraphic traffic had decreased, and I would like to know whether there has been a corresponding decrease in the expenditure of the Post Office. A business firm, when it finds that its income is reduced, reduces its expenditure, and I would like to know whether the Post Office is following that example. Are the right hon. Gentleman and the Post Office satisfied with the rate of despatch of telegraphic messages? I have met sometimes angry Members of the House of Commons who have denounced those who turn out newspapers for not publishing their words of wisdom.

The point I want to make is that we are not getting value for what we are asked to pay to-night.

I will take the subject of uniform for telegraph boys. Personally, I think a good deal of the money that is spent on that might be more usefully employed for the speeding up of the service of the Post Office generally. We are spending money on bicycles. Anyone who wanted to do the work of the Post Office could do it on crutches. The Postmaster-General informed us the other day that the Post Office system of this country could not be improved. If that incurable optimism exists in the Post Office, it is hopeless to expect any progress. I should like to ask, for example, with regard to the postal establishment in Ireland—

The hon. Gentleman is just a little premature. The main Estimates, which will come on subsequently, will be the hon. Member's opportunity.

I should like to ask the right hon. Gentleman whether any of this Suplementary Estimate is really used for Ireland? For example, is any part of it being used for the purchase of bicycles, which are used in the martial law area in Ireland? Are these things being used, not for the purpose of the Post Office, but of helping the rebels in Ireland? Bicycles, uniforms, and everything else for which he is asking are being used in Ireland as well as in Great Britain, and yet those of us who live in Ireland know the greater part of the expenditure is being used for the purpose of assisting the rebels and not for the purpose of doing the legitimate work of the Post Office.

This Supplementary Estimate is for the purpose of paying the salaries and expenses of the Post Office, including the telegraphs and telephones, and I should like to say a word or two about the telephones. As the Assistant Postmaster-General knows, there is an intense feeling to-day on the telephone situation.

The Supplementary Estimate is the only question before the Committee—the figures set out on the Paper which the right hon. Gentleman has explained to the Committee. It is not in Order to discuss what would be in Order on the main Estimates.

I thought I was in order in talking of the telephones on the item on the Paper. Let me say that we quite realise that these payments are necessary, and that therefore the Supplementary Estimates are necessary. What I want to ask is: Can the right hon. Gentleman not, instead of increasing the rates under the new system, add a percentage to the present rates to cover the extra cost of wages until the Select Committee reports? Also could the right hon. Gentleman not arrange for the pre- sent form of contract to go on until the Select Committee reports?

Under heading K—engineering materials—increase £120,000—I want to ask a couple of questions. Would it not be possible to save some of that increase if the Post Office utilised some of the telephone and telegraphic instruments sent oversea in the later period of the War—new material which has not been used at all, and which has since been found to number some thousands in the various dumps, and ready for sale as old material? I have first-hand information as to the large number of perfectly new unused instruments which have been scrapped and valued at 10d. or 11d. per instrument. Was it not possible to use some of these and so save the increase due to the cost of material? In addition, what must amount to thousands of tons of telegraph wires have been found in these dumps, and I wish to ask whether it would not have been possible to recover a great deal more of that material, even if it meant keeping it in stock, rather than scrapping it. I cannot help feeling that an ordinary business man would have thus saved some part of the £20,000.

I want to call the Assistant Postmaster-General's attention to a correspondence I have had with him for the last 12 months concerning the need of certain constituents of mine connected with branch telephone establishments. In one instance an individual wants an exchange line, and is told that he cannot have it, and in another case somebody wants a private line and is told that he cannot have it. This has been going on for 12 months, or even more, and there are only a few hundred yards between the two places. When the right hon. Gentleman speaks of the impossibility in 12 months of making a connection between premises a few hundred yards apart, he leads me to suppose that there is something radically wrong with the staff, and it is because the Assistant Postmaster-General is applying for a large sum in respect of staff that I am suggesting to him that instead of giving an increase to the staff he should shift the individuals responsible to some other district and put new men in their place. I think that in that case my constituents would be better served, and would get a connection which has been badly wanted for so long. I suggest that this would not cost a great deal, and would give great satisfaction as far as I am concerned.

I want to raise a question which is not always in order, but which I think must be so on this occasion. I refer to heading E3, the Cost of Packet Services in the Hebrides. I am surprised that some Member of the House has not been complaining of this item of £40,000 in the Supplementary Estimates. I do think that the Post Office has not got value for its money. It has been a surprise for me to hear from the Assistant Postmaster-General that £190,000 is being spent upon the services, of which this £40,000 is a part. I wish to make one explanation. I think a number of hon. Members, including the hon. Member for Montrose, do not realise exactly why I raise this question. They think that I have got into the habit of doing so entirely on behalf of my constituents. As a matter of fact it concerns the west coast of Scotland and the constituencies of three Members of the Government, and the reason I speak so often is that though these three Members of the Government have as much interest in the matter as I have, their tongues are tied. I have mercifully escaped being a Member of this Government, and therefore I can speak on their behalf as well as my own. As a matter of fact I am dealing with an immense area of country, the West Coast of Scotland. If you take in the sea and roll out the hills you will have an area equal nearly to the whole of England, and so it is not such a small matter as people imagine. What I want to point out is that the Post Office, in spending £190,000 upon the West Coast of Scotland, did not get value for their money. The service now is worse than it has been for the last 50 years. If the Post Office had some shipping expert they would be able to deal with McBrayne's people much better than they have done. I think the Post Office has been had. In view of the extra amount of money which they spend upon this service, they ought to get a much better service than they are doing at the present time. In the principal part of the West of Scotland, that is to say, the Island of Lewis, which has the largest number of inhabitants of any island except, perhaps, Ireland, there has been a daily service with the mainland for over 40 years. The whole economic life of the island has been built round that daily service, and the industry there is of such a nature that a daily service is absolutely necessary. For the money the Post Office are paying they ought to have a service all the year round. I am not asking for anything new. I am merely asking that we should have as good a service now as we had in the dark ages 40 years ago. I know the Postmaster-General is sympathetic, and I know he has got to fight with the wild beasts of Ephesus at the Treasury, but I do hope he will take up a strong line in this matter. He should consult the Report of the Committee appointed by the Secretary for Scotland three years ago. That report demands not only the restoration of the pre-War services but an improvement upon them. It is a disgrace that an important community such as the Island of Lewis should have a packet service only half what it was forty years ago when the business has increased ten times. If I were speaking for dwellers in Mesopotamia I would get millions for establishing postal services, railways, canals, steamers and all that sort of thing Here I am speaking for men who did not tear up your railways and did not massacre your men as these Arabs did, but for men who fought for their country from the beginning of the War. I do ask the Postmaster-General to take a sensible view of this question. All I ask is to restore the service to what it was and to get value out of Messrs. McBrayne. I hope that at any rate during the summer the daily service will be resumed. All I can say is that the service was better in the days of our grandfathers than it is to-day.

I understand that about 150 temporary postmen employed in the London area are under the Regulations to be discharged at the end of March and the first week in April. A deputation of the men waited upon the Controller and asked if they could be kept on until other employment could be found, and were informed by the Controller that the Post Office had no authority in the matter, but that they were acting on an order from the Government. Will the right hon. Gentleman agree to receive a small deputation of these men before the dismissals actually take place? I hope that he will.

I want to raise a question as to the Western Union Cable. Is there any likelihood of our getting back to pre-War conditions and rates? Now the charges are three times what they were before the War, and as the Imperial Service deals with all Imperial cables surely some relief could now be given to users?

In reply to the hon. and gallant Member for Enfield (Colonel Newman) who is, I know, a great authority on dress, I can only say that the extra charge on this head is of course largely due to the extra cost of labour and material. I only once took part in the selection of dress for the Post Office and was then asked to choose a riband for girls to wear. I chose one which I thought very pretty and suitable and then was informed that it had also been chosen by the Red Cross, which organisation had consequently to alter its selection. With regard to the wages question the Postmaster-General and myself do not deal with it: it is dealt with by arbitration. There has no doubt been a large increase of pay to many sections of the staff and it has been due mainly but not altogether to the cost of living. In the telephone service the charge has gone up from £2,800,000 to £8,000,000. That is due partly to the cost of living, but also it has arisen from the necessity to obtain efficient service, because during the War considerable sections of females resigned from the service of the Department and we were left with a very large number of girls with practically no experience.

Can the right hon. Gentleman explain how it is some of the increases of wages have been made quite recently?

They were given to Post Office sorters and to boys. The original Estimate was £33,000,000, and this revised Estimate is for £34,000,000. That is a difference of only 3 per cent., and it is impossible, in all the circumstances, and especially at a time like this, to estimate with absolute accuracy in regard to these matters. With regard to the strictures of the hon. Member for Wood-vale (Mr. Lynn) on the telegraph service, I think there is very little complaint with regard to the telegraph service in this country at the present time. I have re- ceived practically no complaints with regard to it for the last six months. We have difficulties sometimes, and as an illustration of an exceptional difficulty I may mention that the other day a man purposely put six telegrams out of eight into the wrong envelopes and sent them out. The Committee will realise what that would mean if those telegrams had been sent to Members of Parliament. If my hon. Friend will bring to my notice any difficulties with regard to the telegraph service in Belfast or any other part of Ireland, I shall be pleased to look into them. I am sorry that I have not been able to meet his wishes on all the occasions on which he has raised such points. With regard to what was said by the hon Member for Plymouth (Sir A. Shirley Benn), the Postmaster-General could not say that he would agree to make any change in the policy which he adumbrated the other day in regard to the new rates, but as regards the question of finding some automatic arrangement for keeping a register of the number of calls, I shall be very glad of any information as to any system by which that can be done. Great efforts have been made in America and in other countries to find some practical system for dealing with this question, but, as far as I know, no method has been found by which one would be able to tell the difference between an effective call and a non-effective call.

I am sorry to say that that has not been found possible. Anyone who listened to the evidence given before the Committee over which the hon. Member for Lewisham (Sir E. Coates) presided will realise that the Post Office are quite as anxious as anyone else to find a way of meeting this difficulty. As far as charges are concerned, no one could expect the old rates for the telephone to be continued, any more than they could buy any other commodity at the old price. I am aware of the point mentioned by the hon. Member for Central Middlesbrough (Mr. T. Thomson) with regard to the equipment which has been found in France. I received a letter from one of the hon. Member's constituents and wrote to him in reply that I should be very glad to arrange for the inspection of samples of the articles sent from the dump in France, whether wire or instruments, and that matter is being dealt with. This question has been ventilated in the Press, but no intimation came to the Post Office before the letter from this gentleman, whom I have known for the last 20 years. With regard to the request made by the hon. Member for Whitechapel (Mr. Kiley), I should be glad to meet his wish if possible. He has written me a number of letters in regard to many questions, and I forget why this one was not attended to, but I shall be very glad to look into the matter. I have replied on many occasions to the point raised by the hon. Member for the Western Isles (Dr. Murray) whose constituents are to be congratulated on having a Member who is so anxious to look after their interests. The hon. Member always forgets one fact when he takes up the question of charges, and that is the increased costs. When he talks about 40 years ago and the ratio between charges then and now, I think he is rather inclined to forget the costs. As far as that part of the Post Office is concerned, I can assure him we try to make the very best bargain we can in regard to these matters, but it is not so easy to get accommodation in the Western Isles as in some other parts of the British Empire. In reply to the hon. Member for Monmouthshire, I sympathise quite as much as any hon. Member in regard to this question of temporary postmen. In my constituency the other day I was requested to receive a deputation of them, and if I saw any possibility of meeting their requests I should be very glad to meet a deputation. I will take the matter up with the authority of the Post Office and mention what the hon. Member has said to me to-night. If there is any way of meeting this very difficult situation, I shall be only too glad to be of service in the matter.

Question put, and agreed to.

Resolution to be reported to-morrow; Committee to sit again to-morrow.

Supply

Report [10th March]

Order read for resuming Adjourned Debate on Question [12th March],

"That this House doth agree with the Committee in the Resolution, 'That a Supplementary sum, not exceeding £10, be granted to His Majesty, to defray the Charge which will come in course of payment during the year ending on the 31st day of March, 1921, for the Salaries and Expenses of the Lord Advocate's Department, and other Law Charges, the Salaries and Expenses of the Courts of Law and Justice, and of Pensions Appeals Tribunals in Scotland.'"

Question put, and agreed to.

Second Resolution,

"That a Supplementary sum, not exceeding £11,500, be granted to His Majesty, to defray the Charge which will come in course of payment during the year ending on the 31st day of March, 1921, for the Salaries and Expenses of the Offices in His Majesty's General Register House, Edinburgh."

Considered, and agreed to.

Report [12th March]

Resolutions reported;

Civil Services and Revenue Departments Supplementary Estimates, 1920–21

Unclassified Services

1. "That a Supplementary sum, not exceeding £100, be granted to His Majesty, to defray the Charge which will come in course of payment during the year ending on the 31st day of March, 1921, for the Salaries and Expenses of the Ministry of Shipping."

2. "That a sum, not exceeding £275,000, he granted to His Majesty, to defray the Charge which will come in course of payment during the year ending on the 31st day of March, 1921, to meet charges arising out of the assimilation of certain existing grades of Civil Servants to new grades."

Revenue Departments

3. "That a Supplementary sum, not exceeding £880,000, be granted to His Majesty, to defray the Charge which will come in course of payment during the year ending on the 31st day of March, 1921, for the Salaries and Expenses of the Inland Revenue Department."

First and Second Resolutions agreed to.

Third Resolution read a Second time.

Motion made, and Question proposed, "That this House doth agree with the Committee in the said Resolution."

I wished to safeguard myself and to be able to move a reduction if the right hon. Gentleman's explanation was not satisfactory, but as I can only speak once I will make a few observations on the Vote which includes the salaries of assessors and collectors of taxes and of the revenue staff generally. The tax clerks have a very genuine grievance. They perform a duty which has become much more complicated and onerous in recent years for reasons of which hon. Members are only too painfully aware. If these tax clerks were paid by results on a percentage of the amount of money that passes through their hands they would have no cause for complaint of their salaries not having been increased to any appreciable extent except by war bonus. I am referring particularly to the salaries of the junior grades which are still shamefully low. I asked a question on the 10th of this month, how many inspectors of taxes are in receipt of a salary, exclusive of war bonus, of less than £85 a year, and I hope the House will be as shocked as I was to hear that no fewer than 900 of these very responsible officials, inspectors of taxes, are in receipt of a salary of less than £85 per annum. The work which these gentlemen do is very complicated and it will not be good economy to underpay them. If they are suffering from a sense of grievance and hardship we cannot get the best out of them. At the present time, when it is absolutely essential that the Treasury should be able to get every penny of taxation which this House permits them to raise, it is very important that the men who do the spade work, who have to inspect the books of small businesses, and who really raise the bulk of the money, should get a living wage. They have not a living wage. A wage of £85 a year for an educated man in the position of an inspector of His Majesty's taxes is altogether inadequate. The Treasury have admitted this, because, owing to the stress of work in recent months, they have taken a number of ex-service men as unskilled tax clerks, and these men are actually paid a higher salary than the skilled tax clerks. They have received £90 a year pre-War, with bonus. Many scores of tax clerks are only receiving £70 a year exclusive of war bonus, for which sum very few of us would be able to engage a man servant. These are gentlemen through whose hands many thousands of pounds come to swell our immense revenue. No section of the Civil Service responded more readily to the call to the colours than the tax clerks, and they are deserving of better treatment than is being meted out to them. The chief inspector and deputy-chief inspector of taxes with comparatively good salaries have had increases to £1,500 and £1,200. I regret that so far the Treasury have not seen their way to improve to any extent the pay of the junior ranks. What these gentlemen say is that the whole work of tax collection to-day is a highly skilled one. Many of us who take an interest in financial matters know that the taxes are highly complex. These gentlemen ask to be put on the grading of skilled accountants, skilled clerks. My right hon. Friend will be the first to admit that it does not pay the Treasury to have underpaid discontented servants doing this really responsible work.

Yes. They are the younger men up to 23 or 24 years of age. They have lost time by serving with the colours, but they are permanent servants. Later on their pay is better, but in the junior ranks the grievance is most felt. Their pay is inadequate, and I hope that my right hon. Friend will hold out some hope that this deserving class of important public servants will have their condition improved.

My hon. and gallant Friend I think is aware that the process of grading among the classes in which he is specially interested is a very complicated and difficult one. It is going on now, and I hope that before very long a solution will be reached which may be satisfactory to all parties concerned. The administration of the Inland Revenue, which has to be expanded so much in these days to meet the enormous demands on that office, has been and is being thoroughly overhauled, and I have little doubt, with my knowledge of the officers who are concerned in that Department, that when they have reached a solution of this question it will be a satisfactory one. With regard to the Vote itself it is only right to put before the House the cause of the increase in the sub-heads on this Vote, as owing to the fact that the Committee stage was taken late on Saturday the Committee allowed the Vote to be taken without the examination that would have been given to it had it come on earlier in the day. The sum for salaries, wages and allowances is accounted for directly by the increased work that has been placed on the Board of Inland Revenue, largely owing to the Finance Act of last year.

A new duty, the Corporation Profits Tax, was imposed; the limit of Super-tax was reduced, which has meant a far larger increase of Super-tax payers than I for one expected—no less than from 30 to 40 per cent.—and for the first time the Inland Revenue have had to deal with an entirely novel system of graduation, which was introduced as a result of the Report of the Royal Commission on Income Tax. That has increased the detailed work in every office in the country, and the additional staff employed now over that employed on the last 1st April is no less than 969. I am afraid that those figures may yet have to be increased. Of course, there is no doubt that the greater care the Department is able to give in the examination of accounts the more money is brought into the Exchequer. The next item is for bonuses to the assessors and collectors. Assessors and collectors, whose duties will be familiar to Members of the House, are in the main part-time officials who have some work of their own, apart from the work they are doing in preparing returns, and in some cases, in collecting for the Revenue, and they number between 4,000 and 5,000. The bonus paid to them has been calculated on approximately the same scale as the Civil Service bonus, but it is rather less, having regard to the fact that in the main they are not whole-timers. It is only fair to say that such bonus as has been given does not go entirely to the assessors and collectors, because in many cases they have to make some allowance to their own clerks, who are not established, and they have had to pay higher standing charges in the conduct of their businesses because the rents of their offices have been raised. The rise in cost of the manufacture of currency notes is owing to the general rise in prices that came during the course of last year, and represents an increase of price paid to the contractors, Messrs. Waterlow and Sons, for the manufacture of the pound and ten-shilling notes. The prices they were obtaining a year ago were 13s. 4½d. per 1,000 of the pound notes and 11s. per 1,000 of the ten-shilling notes. During last year the paper used for the pound notes rose 2d. per 1b., and that for the ten-shilling notes 6d. per 1b., and wages in that class of work have risen by no less than 25 per cent. The contractors asked for a certain increase, but we had their accounts carefully examined, and we made a payment of an additional 1s. per 1,000 notes for both the pound and ten-shilling notes, and for the time being that rate is considered satisfactory. The last item is the one that, probably, has aroused most interest amongst Members. I confess it aroused curiosity in me. I am ashamed to confess that, until I came to look into this Estimate, I had no idea there was a Stamp Duty on bank notes. The explanation of the Vote is this. At the outbreak of War there was a very serious alarm in Scotland and in Ireland as to the shortage of currency, and the Government, almost immediately on the outbreak of War, by the Currency and Bank Notes Act, which was passed, I think, in August, 1914, gave permission to Scottish and Irish banks to issue notes in excess of what they were allowed by Statute to issue. For five years that excess of currency was permitted. By Proclamation, the privilege, if I may call it so, was withdrawn in the course of last year, and now they have only, as the English banks, their statutory right of issue. It was felt by the Government that it would have been unfair to have thrown on the banks the expense of making this excess issue, and so on all the excess notes they are being refunded the duty which they have paid. We had no power to grant an exemption. They had to pay the duty as they went along and issue the notes. It was not considered desirable to repay them by small Estimates year by year. It was thought much better to take it altogether when that particular form of issue was over, though, for some reason with which I am not familiar, the Bank of Ireland was refunded during the War. That was done before I took office. There were 14 banks concerned, that is, all the note-issuing banks of Scotland and Ireland, except the Bank of Ireland, and the sum to be paid refunding the Duty they have already paid amounts to to about seven-eighths of the figure under Sub-head K.2. The rest of the amount is the cost of the printing and the issue of those notes. The duty pay- able on a £1 note is 5d., and on a £5 note 15d., and, assuming all the notes were £1 notes—and most are in Scotland and Ireland—it will account for an issue within that period of £18,000,000. I hope the explanations I have given may make the matters under this Vote clear to the Committee.

I should like to ask a question about K.1. I understand the right hon. Gentleman is calling in all the £1 notes printed on Bank of England note paper that we used to have in the early part of the War, and 10s. notes were printed in red instead of green. I have had several complaints in my own constituency from poor people who have been in possession of the old notes. They have been refused at the post offices, and they cannot get rid of those old notes. They want to know whether the Government are making default and are not going to cash their own notes. I should like some word of explanation which would tell these people, when they have an old note which is being called in, how they are to get the money which is legally due to them.

I wish to ask my right hon. Friend if any interest was paid to the Scottish and Irish banks, and which would be included in the £445,000 under sub-head K2.

No. With reference to the point which the hon. and gallant Gentleman (Colonel P. Williams) has raised, I have had no complaints.

Is it the fact that these men about whom the hon. and gallant Member for Hull inquired are on the permanent staff and full-time men, and are only receiving £85 a year, or are they part-time men?

I am afraid I cannot answer detailed questions about the various grades of staff, because the Inland Revenue staff is an enormous one. What I alluded to in regard to re-grading was the tax clerks, but I have not got in my mind the various salaries they receive. In any case, it is very difficult to form any conclusion on a matter which you just hear mentioned in the House. With regard to the basic rate, the actual earnings are what the man gets—the basic rate—plus the war bonus. The war bonus will be discussed at some length on Friday, and if there is any information my hon. and gallant Friend would like to have on any particular grade, I will get it for him.

Question, "That this House doth agree with the Committee in the said Resolution," put, and agreed to.

Report [11th March]

Resolutions reported,

Civil Services and Revenue Departments Supplementary Estimates, 1920–21

Class V

1. "That a Supplementary sum, not exceeding £10, be granted to His Majesty, to defray the Charge which will come in course of payment during the year ending on the 31st day of March, 1921, for the Expenses in connection with His Majesty's Embassies, Missions, and Consular Establishments Abroad, and other Expenditure chargeable to the Consular Vote, including certain Special Grants."

2. "That a Supplementary sum, not exceeding £45,000, be granted to His Majesty, to defray the Charge which will come in course of payment during the year ending on the 31st day of March, 1921, for sundry Colonial Services, including certain Grants-in-Aid."

Class Vi

3. "That a Supplementary sum, not exceeding £22,700, be granted to His Majesty, to defray the Charge which will come in course of payment during the year ending on the 31st day of March, 1921, for Superannuation, Compensation, Compassionate, and Additional Allowances, and Gratuities under sundry Statutes, for Compassionate Allowances, Gratuities, and Supplementary Pensions awarded by the Treasury, and for the Salaries of Medical Referees."

4. "That a Supplementary sum, not exceeding £320,000, be granted to His Majesty, to defray the Charge which will come in course of payment during the year ending on the 31st day of March, 1921, for the Expenses of setting up and maintaining certain Organisations for supplying the Necessities of Life during an Emergency."

Unclassified Services

5. "That a Supplementary sum, not exceeding £100, be granted to His Majesty, to defray the Charge which will come in course of payment during the year ending on the 31st day of March, 1921, as the British Share of the Advances to be made in respect of German Coal Deliveries."

6. "That a sum, not exceeding £120,000, be granted to His Majesty, to defray the Charge which will come in course of payment during the year ending on the 31st day of March, 1921, for claims by British, Allied, or Neutral third parties against ships or cargoes condemned or detained as Naval Prize."

Resolutions agreed to.

Ministry of Munitions (Inquiry)

Motion made, and Question proposed,

"That it is expedient that a tribunal be established to inquire into a definite matter of urgent public importance, namely, the allegation that on a recent occasion an official of the Ministry of Munitions instructed certain persons employed in the service of the Ministry to destroy material documents or to conceal them from the Exchequer and Audit Department; and to inquire into and report upon the circumstances surrounding this alleged instruction."—[ Colonel Sir R. Sanders .]

Can the Attorney-General say whether this will be a public inquiry, or will it be left to the tribunal itself to say whether it will or will not be public?

I am not sure that my hon. Friend was here when this matter was discussed, but it was then agreed that this Motion should be carried without any discussion. The Bill under which this Resolution is put before the House provides that the matter the hon. Gentleman now mentions is in the discretion of the tribunal itself.

Question put, and agreed to.

Health Resorts and Watering Places Bill

Read a Second time and committed to a Standing Committee.

The remaining Orders were read, and postponed .

It being after half-past Eleven of the clock, Mr. DEPUTY-SPEAKER adjourned the House without Question put, pursuant to the Standing Oder.

Adjourned at Three Minutes before Twelve o'clock.