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Commons Chamber

Volume 146: debated on Tuesday 16 August 1921

House of Commons

Tuesday, August 16, 1921

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

Private Business

Leicester Corporation Bill,

Metropolitan Water Board (Various Powers) Bill,

North Staffordshire Railway Bill,

Lords Amendments considered, pursuant to the Order of the House of 10th August, and agreed to.

Batley Corporation Bill (by Order),

Lords Amendments considered, and agreed to.

Manchester Corporation (GeneralPowers) (re-committed) Bill [ Lords, ]

Ordered, That Standing Orders 84, 214, 215, 239, and 242 fee suspended, and that the Bill, as amended on re-committal be now considered.—[ The Chairman of Ways and Means. ]

Bill, as amended, considered accordingly; an Amendment made.

Ordered, That Standing Orders 223 and 243 be suspended, and that the Bill be now read the Third time.—[ The Chairman of Ways and Means. ]

Bill accordingly read the Third time, and passed, with Amendments.

Ministry of Health Provisional Orders (Aberavon and Neath Extension) Bill,

Ministry of Health Provisional Order (Stoke-on-Trent Extension) Bill,

Pilotage Provisional Orders (No. 5) Bill,

Lords Amendments considered, and agreed to.

Airdrie and Coatbridge Tramways Trust Order Confirmation Bill,

Read the Third time, and passed.

Grangemouth and Stirling Water Order Confirmation Bill,

Considered; read the Third time, and passed.

Local Taxation Returns (England and Wales), 1919–20, Part I

Return ordered "showing the sums expended and received during the year ending the 31st day of March, 1920, by boards of guardians of the poor and joint Poor Law authorities, including the managers of the Metropolitan asylum district, and the amounts of the outstanding loan debts of those authorities at the end of the year."—[ Sir A. Mond. ]

Oral Answers to Questions

India

Publicity Department, Bengal

asked the Secretary of State for India whether the legislative council of Bengal has reconsidered or will reconsider its decision not to grant the funds required for a publicity department; and whether this subject can again be brought before the council in view of the crying need, to which the Governor has publicly testified, of the propagation of truth as regards matters of current controversy in India?

According to my information, the Council has not reconsidered its decision. And I read the Governor's speech, to which my hon. Friend refers, as indicating that he does not intend to have the matter brought before the council again until it is likely that the council has changed its opinion. He relies meanwhile on private efforts.

Is it not a fact that the Legislative Council for Bengal itself is the best publicity organieation going?

I do not know. I attach the greatest possible importance to the publication as widely as possible in India of the true facts.

Non-Co-Operation Movement

asked the Secretary of State for India whether at the bonfire of imported cloth recently organised by a Mr. Gandhi, a meeting took place at which this Mr. Gandhi and the two Ali brothers both spoke; whether this was in accord with the undertaking given to the Viceroy; and what was the nature of the speeches?

In the accounts which I have received of the occurrence, there is po mention of any speeches having been made.

Defence

asked the Secretary of State for India whether, considering that there were in India and Aden, in 1914, 39 Indian cavalry regiments and 132 battalions of Indian infantry, he will now state what was the number of units of the Indian Army in India on the 23rd March, when he assured the House that no further reductions would be made in the Indian Army pending the result of the inquiry by the Sub-Committee of Imperial Defence; and what is the number of units, cavalry and infantry, respectively, of the Indian Army in India at the present time which are not under orders for disbandment?

I regret that, owing to the constant fluctuation in the number of Indian units in India, due to the return of units from overseas and to disbandments in progress of units raised for the War, I cannot give the information asked for without a reference to India.

asked the Secretary of State for India whether, considering that the total expenditure of Japan on national defence is £108,000,000 and of India only £41,000,000, while the rate of expenditure on this account per head of the population works out at 21 rupees in Japan as compared with only 2½ rupees in India, he will now state what is the ratio of defence expenditure in India to the total gross revenues of India, including the receipts both of the Government of India and of all the different presidencies and provinces?

The figures have, as I informed the hon. and gallant Member on 28th June last, been asked for from India. They have not yet been received.

May I ask whether the right hon. Gentleman noticed in the papers that it is stated that the percentage of expenditure in India is 31 per cent., and, considering that Japan is spending 51 per cent, on national defence, will the right hon. Gentleman represent to the Government of India how very small their insurance for national defence is?

Before the right hon. Gentleman answers that question, will he see that India does not copy Japan in the matter of armaments?

It is an argumentative question, giving the hon. and gallant Member's opinion.

asked the Secretary of State for India what has been the result of the discussion at the Imperial Conference of the question of Empire naval policy and co-operation so far as India is concerned; and what steps will now be taken to give effect to Admiral Jellicoe's recommendations regarding the formation of an India Navy out of the present Royal Indian Marine?

I would refer the hon. and gallant Member to the summary of the proceedings of the Imperial Conference which has been published in the Press, and to which I can add nothing. As regards the second part of the question, the position remains as I described it in my answer to the hon. and gallant Member's question of llth April

Munitions Department

asked the Secretary of State for India whether the charge of fraud on a large scale, in connection with the Munitions Department, brought against two native merchants at the chief presidency magistrate's court, Calcutta, was withdrawn last week by the advocate-general, Bengal, though a large sum of public money had been spent in preparing the case; whether the advocate-general stated that in the opinion of the Indian Government the accused were guilty, but that if the prosecution proceeded widespread commercial and industrial interests would be seriously affected by reason of the association of the two accused with various business concerns, many of a Swadeshi boycott character; and will he state why the Indian Government have allowed political considerations to defeat the administration of justice?

The facts appear to be as stated in the first three parts of my hon. and gallant Friend's question. I am circulating a paraphrase of the telegraphic reports I have now received from the Government of India, from which it will be seen that Sir Thomas Holland, the member of the Viceroy's Executive Council in charge of munitions, authorised the withdrawal of the case on his own responsibility after consultation with some of his colleagues, but not with the Viceroy. As has been stated in the Press, the decision was not known to the Viceroy until the withdrawal had actually taken place. The matter as reported is so serious that I am at once asking the Viceroy to communicate to Sir Thomas Holland certain questions in order to supplement the information I have received. As soon as I am in possession of the replies, they will be brought before His Majesty's Government, who will consider what action, if any, may be necessary. I trust the House will not desire to press the matter further until full information has been obtained.

May we assume that the action has not the approval, as at present advised, of His Majesty's Government?

In the case of a European, who is also implicated in these speculations, will the charge against him be also withdrawn?

I hope my hon. and gallant Friend will appreciate that two wrongs do not make a right. But I would urge that no further questions be asked at this juncture. Sir Thomas Holland is a member of the Government of India, and has earned the widest respect and confidence by his services up to the present time, and I want to be able to furnish the House of Commons with his own answer.

Will the right hon. Gentleman make it quite clear that, in the withdrawal of this case, there was no wish to rehabilitate the value of the shares in the Swadeshi undertakings involved?

Four persons were accused in the Court of the Chief Presidency Magistracy, Calcutta, of conspiring to cheat the Government over the supply during wartime of wire rope of the value approximately of one lakh of rupees. Their names were: Karnani, a prominent banker; J. C. Banerji, a contractor; Waite, formerly Deputy-Controller of Munitions, Bengal Circle; and Stringer, a subordinate official.

As a result of the prosecution there were serious withdrawals of deposits in the Karnani Bank, which endangered its stability. Sir Thomas Holland received information at Calcutta that if the prosecution was continued the bank would fail and it would involve the ruin of more than 120 industrial concerns which Karnani financed. Before that there had already been some public agitation of which the implication was that the Government in prosecuting these persons designed to destroy the credit of a new industrial bank actively engaged in financing Indian industries. There was danger of a great intensification of this agitation so as to cause racial ill-feeling, if in consequence of the continuance of the case several industrial concerns had collapsed, as seemed to be certain to result. Besides this, although the Government's legal advisers considered the case for prosecution sound and the evidence trustworthy, they also pointed out that the accused would be committed for trial to the High Court, that the trial would not be finished for many months, and that it was doubtful whether a jury in a complicated case of this character would convict. It is certain that the defence would have made a point with the jury of the public benefactions made by Karnani during the War. Thus on the one hand a conviction would seriously affect one section of the public, on the other a long trial followed by failure to secure a conviction from the jury would have similar disastrous results, and would appear to justify the feeling of bitterness and intensify it, and give rise to attacks on the Government on the ground that public funds had been unnecessarily wasted in the prosecution. Sir Thomas Holland for these reasons thought it wisest to withdraw the prosecution. Before reaching the decision he had consulted the members of the Government already familiar with the facts. But not the Viceroy, who states that he would not have consented to the case being withdrawn upon the ground stated by the Advocate-General. In the Court the Advocate-General made a statement of the charges in order to establish the fact that the Government were justified in launching the prosecution. The only ground for withdrawal which he stated in Court was that a net-work of industrial and commercial interests would be endangered. The terms of the statement made by the Advocate-General were not known to the other members of the Government who had been consulted about the withdrawal until they appeared in the Press. * It should be explained that certain civil claims had been made for about three lakhs of rupees on account of the supply of

* The telegrams do not give the precise terms of the instructions given to the Advocate-General by Sir Thomas Holland.

munitions by Karnani against the Government. Sir Thomas Holland had frequently been approached by many people influential in business and public life to withdraw the criminal case; but he had informed them that the Government would not consider such a withdrawal so long as these civil cases were threatened. Karnani subsequently withdrew these claims unconditionally. Sir Thomas Holland then took up the question of withdrawing the prosecution and decided as above stated. Of the accused, Waite is on bail in England, and is said to be dangerously ill. The charges against him stand good, but the subordinate, Stringer, has been discharged. The prosecution withdrawn has no connection with the charge against Blackburn and Michael of Spalding and Company, whose extradition from England was obtained last March, and who are now under trial in Calcutta, though Waite is accused in that case also.

Sir Thomas Holland accepts entire responsibility for the action taken. The Viceroy states in explanation of the failure to consult him that Sir Thomas Holland has been very gravely overworked having been in charge of Sir George Barnes' Portfolio in addition to his own since the latter left India, and that means were being sought to relieve the pressure on him before this occurred.

Coal Exports

asked the Secretary of State for India whether the export of coal from India without licence is still prohibited; and whether, in the interest of the Indian export trade and rupee valuation, this interference with trade will now be put an end to?

The answer to the first part of the question is in the affirmative. As regards the second part, I have received a telegram from the Government of India saying that there is as yet no improvement in the situation as regards the supply of coal available. They regret, therefore, that they are at present unable to modify the restrictions on the export of coal.

Is the right hon. Gentleman not aware that the difficulty in regard to the coal is largely due to the absence of trucks for the haulage of the coal; and what steps are the Government taking to increase the supply of trucks so that the mines can compete with the demand?

One of the difficulties against which the Government of India has to contend is the imperfection of the transport system in India which they are doing their best to remedy; but it seems to me to be useless to suggest that coal can be exported when there is not a sufficient supply for the needs of India.

Press Act

asked the Secretary of State for India whether the Government of India has decided as to the action to be taken upon the Report of the Committee appointed to examine the Press Act and other enactments of the like character?

I understand that the Government of India has come to a decision upon most of the recommendations, but I am not at present in a position to make any definite announcement in the matter.

Civil Service (Memorial)

asked the Secretary of State for India what decision has been arrived at by the Government of India on the memorial sent to him by the Indian Civil Service Central Association; and whether he will publish a copy of the comprehensive Resolution on the subject promised by the Government of India?

I regret that the Government of India have not found it possible to issue the Resolution so soon as was hoped, but this will be done at the earliest possible moment, and its contents will be made available to the public here. My hon. Friend will no doubt appreciate the complexity of the issues involved.

Questions

Government of Burma

asked the Secretary of State for India whether his attention has ben called to the statement of the Government of India, in their telegram of 19th November, 1920, that the immediate application of the 1919 Act to Burma was an experiment fraught with great risks, for the consequences of which they could not accept any responsibility: but, in the event of the Secretary of State having finally decided that the Act should be applied to Burma, they urged that this should not be done by way of notification, but that their views should be laid before Parliament, who should express its approval by special enactment; whether this document was submitted to the Cabinet before it was decided to proceed to apply the Act by notification, and without consulting Parliament, against this expressed opinion of the Government of India; and, if not, what was the reason?

The Government are, of course, aware of the statements quoted in the first part of the question, in consequence of "which it was decided to proceed by Bill. But I invite the hon. Member's attention to the telegram dated 19th March last (No. 14 in Command Paper 1194), in which both the Government of India and the Burma Government urged that the principles contained in the Bill should be accepted with the least possible further delay. The recommendation of the standing Joint Committee was to the same effect, and the notification will produce exactly the same results as would have been produced by a Bill. I would also refer to the statement made by my right hon. Friend the Lord Privy Seal on the 9th August.

Are we to understand from the right hon. Gentleman that the Government of India withdrew their former request to have their views brought before Parliament?

The question was brought before the Houses of Parliament by the introduction of the Bill. The situation has been substantially altered by the more recent expression of opinion of the Government of India, and by the discussions of the Joint Committee.

Did not the Government of India say that in any case they would like the views of the Houses of Parliament, and does the right hon. Gentleman suggest that, because a Bill was introduced, an expression of their views was thereby obtained?

Is it not a fact that these matters of granting entirely different constitutions and Governments to the great Dominions of the British Empire ought of necessity to be brought before this House and properly discussed here, and not put through in this hole-and-corner way?

I would remind the hon. and gallant Gentleman that this House and the other House decided by Statute that the new Province might be made by notification, and that is in accordance with the Statute. This Measure was introduced to the notice of Parliament because of a difference of opinion between the Government of India and the Secretary of State for India in Council. That difference of opinion has now been arranged, and it was thought by His Majesty's Government to be unnecessary to proceed with the Statute referred to which would duplicate the Statute on the Statute Book.

Does the right hon. Gentleman suggest that the mere notification of a Bill in this House really takes the opinion of the Houses of Parliament? Does he not realise that it is through the various stages of Measures that we get the opinion of the Houses of Parliament?

My hon. Friend seems to forget that the very introduction of the Bill and its reference to a Joint Committee led from various reasons to the disappearance of all controversy, and that an agreement has been reached by the parties concerned.

British Army

Ordnance Store Depot, Didcot

asked the Secretary of State for War what was the total cost of the ordnance store depot at Didcot, including the cost of the land compensation to farmers, expenditure on buildings, railways sidings, and roads; what are the numbers of the present establishment and the total annual cost; how many labourers are employed; what is the weekly wage bill; what accommodation for labourers has been built since 1919; whether other houses are projected; and how much of the material is stored in the open air?

The total cost of the Ordnance depot at Didcot, including the cost of the land, compensation, expenditure on buildings, railway sidings and roads, was £717,524. The present establishment numbers, 1,016, but it is being reduced; and the estimated total annual cost is £191,400. The number of labourers employed is 448. The wages bill for the week ending 5th August was £3,598. These figures include the whole of the personnel at the depot, namely, civilian and military. No accommodation for labourers has been built, but 8 huts were converted into quarters for civilian employés last year. It is proposed to build quarters for 8. officers, 22 other ranks of the Royal Army Ordnance Corps, 8 civilians and 20 police. As regards the last part of the question, there are stored in the open some 15,000 tons of stores (including vehicles), which have been reported for disposal. There are also in the open a number of vehicles which are being retained for use in the service, as well as bridging material, telegraph poles, tent bottoms and poles, for which there is at present no covered accommodation. All of these stores which require protecting are covered with tarpaulins and receive constant attention to minimise the effects of exposure.

Can the right hon. Gentleman give the House any more particulars in regard to the 568 officials employed other than labourers?

Will the right hon. Gentleman also tell the House why are thousands of barrows exposed—people travelling in the train see them—and they are deteriorating because they are not protected?

I cannot answer the question of the right hon. Gentleman (Sir D. Maclean) with out notice as to the exact number of officials—

Certainly, I will do that. With regard to the barrows, they are exposed because we have not sufficient covered storage for them.

But is not the right hon. Gentleman aware that they have been there for nearly five years?

Well, some of them, as I have said in my answer, are retained for Army use, and, for the others, cover will be found as soon as it can be obtained. These others are war surplus for disposal, and I suppose they will be disposed of as soon as possible.

Does the weekly wage bill referred to in the main answer include the fares paid to the daily labourers who travel on a labour certificate?

Chiseldon Camp (Water Supply)

asked the Secretary of State for War if he is aware that the agreement between the military authorities in charge of the water supply at Chiseldon Camp and the Highworth Rural District Council is still unsettled, with the result that delay and expense is being caused in respect to the Chiseldon housing scheme; and if he will give instructions that will expedite matters?

It is anticipated that the agreement between the military authorities in charge of the water supply at Chiseldon camp and the Highworth Rural District Council will be in the hands of the district council for signature during the course of the next few days.

Is the right hon. Gentleman aware that in November last his predecessor informed me that an agreement had been reached in this matter?

:I was not aware of that, but it will be in the hands of the council within a few days.

Infantry Establishment (Surplus Officers)

asked the Secretary of State for War how many majors and captains surplus to establishment are now serving in. the infantry of the line; and whether any of these officers have expressed a wish to retire?

In only nine regiments of the line is there a surplus of majors and captains at regimental duty. The surplus in these regiments amounts to 23 officers, but, taking the infantry as a whole, there is a net deficiency of 126 majors and captains at duty with their regiments owing to a large number holding temporary extra-regimental appointments in Ireland and elsewhere. It is not possible to say whether any of the individual officers actually surplus to establishment have expressed a wish to retire.

Field Officers

asked the Secretary of State for War how many field officers, who were sent home owing to adverse reports on active service, are still serving; and what steps are being taken to retire them?

The war records of all Regular field officers have been carefully reviewed by a Special Committee at the War Office. In cases where the Army Council considered that the record was unsatisfactory the officer has been called upon to retire.

Is the House to understand that a number of these officers are being allowed to remain in the service; if so, is that fair to the others recommended for accelerated promotion?

It is not true to say that any officer remains in the service where the Army Council, having considered his record, accounts it unsatisfactory.

In view of the fact that such officers were unfit for ordinary service in the War, is it now considered that they are fit for service at home?

That would be a wrong deduction from my answer. My answer was that the Army Council bad considered these officers' records, and where they were considered unsatisfactory, the officer was asked to retire.

asked the Secretary of State for War whether, in reporting on an officer at the Senior Officers' School, Woking, his War record is taken into consideration; and whether a field officer badly reported upon at Woking is allowed to remain on in his regiment until attaining 50 years of age?

The Commandant of the Senior Officers' School, in reporting on an officer, is not in a position to take into consideration the war record of the officer. In making his reports the Commandant takes into consideration The reports are considered by the Selection Board together with the annual confidential reports and war records in deciding upon an officers' fitness for promotion to command a unit or retention in the service.

As regards the second part of the question, the action taken depends upon the nature of the report.

War Disabilities (Hospital Cases),

asked the Secretary of State for War how many soldiers or ex-soldiers are still in hospital suffering from disabilities due to the War?

I regret that information is not readily available as to the number of soldiers at present in hospital who are suffering from disabilities due to the War and to obtain the information, with any degree of accuracy, would necessitate the examination of each individual case in every military hospital at home and abroad. The number of such cases, however, must be very small, as under existing instructions soldiers are not retained in the Army after they have been absent from duty, on account of medical unfitness, for more than 12 months. As regards ex-soldiers, I must refer the hon. Member to my right hon. Friend the Minister of Pensions.

Colonel, Royal Artillery, Gibraltar

asked the Secretary of State for War what were the views of the local military authorities at Gibraltar as to the need for incurring the extra £1,594 a year for the new colonel commanding Royal Artillery there; and whether the appointment was made against their advice?

I have nothing to add to the answers on this subject which I gave the hon. and gallant Member on Tuesday last, and which the hon. and gallant Member has apparently misunderstood; there is no additional cost, on the contrary, there is a saving of nearly £2,000 by the arrangement made.

Is it not a fact that there is an additional cost of £1,500 over and above what was being incurred immediately before this officer came to be appointed?

I have told the hon. and gallant Gentleman that the arrangements made have ensured a saving of something like £2,000.

Why does the right hon. Gentleman not answer the second part of my question, whether the appointment was made against the advice of the local military authorities? I asked the same question last week, and I did not get an answer.

Is it not a fact that these officers must be retained in peace time in order to be available for war?

Was this appointment made against the advice of the local military authorities?

All local advice was taken into consideration when the decision was given.

My hon. Friend must realise that it is quite impossible for me to quote the opinions of individual officers.

War Plaque and Scroll

asked the Secretary of State for War whether, in view of his refusal to allow the plaque and scroll given to those who fell in the great War to be given to the relatives of those who fell subsequently, the Army Council will now take into consideration the question of granting, if not the same plaque and scroll, a new one, which can be given to the relatives of all ranks who give their lives for their country all over the world, whether in the United Kingdom or in India, Afghanistan, Mesopotamia, Palestine, Egypt, Africa, or elsewhere, actually fighting against the enemies of the country, whether internal or otherwise; and whether he is aware of the great consolation and solace the provision of these tangible marks of national appreciation are to the relatives of those who have fallen?

I have nothing to add to the reply given to my hon. and gallant Friend on this subject, on the llth instant.

Is the right hon. Gentleman aware that in that reply he was only alluding to the question of the Great War plaque and scroll. The question is whether he will issue a new one for the relatives of those officers and men who fell in the service of their country after the Great War; and, in view of the tremendous sentimental interest and its great value from a patriotic and national point of view, will he really seriously consider this question?

I have not failed to realise that. I informed the hon. and gallant Gentleman on the last occasion what the practice was as regards commanding officers writing to relatives.

Is the right hon. Gentleman aware that in his answer he said that the relatives of all the officers and men who fell after the Great War would receive a letter from the commanding officer; and cannot the nation provide some national tangible certificate of the great services rendered by the officers and men who fell in the service of their country?

Is the right hon. Gentleman aware that they are being issued to officers' widows and the relatives of men who served in India during the War, and yet they are refusing them military pensions?

Questions

Trinidad

asked the Secretary of State for the Colonies whether he has received from Trinidad a memorial from a body, styled the West Indian Confederation Committee, urging that the Governors of the various West Indian powers be empowered to nominate representative delegates from among the legislatures and city councils for a conference in London to discuss the question of representative government; and what steps he proposes to take in the matter?

I have received a memorial from this committee, but as the regular procedure of forwarding it through the Acting Governor was not followed by them, I am unable to say what weight of public opinion in Trinidad may be behind the suggestion. In any case I could not usefully consider a far-reaching proposal of this nature unless it were adequately supported in the other communities affected. I am not satisfied at present that this is the case: but I am referring the memorial to the Governors concerned for their observations.

Has the hon. Gentleman noticed that there are seven questions on the Paper to-day relating to this one colony of Trinidad, and will he represent to the Colonial Secretary the extreme desirability of some enlightened person being sent by the British Government to the West Indies to look into all these matters, so that we may really be well informed?

Is the hon. Gentleman aware that on a former occasion, when this association represented that things were so very bad in Trinidad, inquiry showed that there was really very little behind it?

My hon. Friend who put the first supplementary question will recall that a similar suggestion was made to the Colonial Secretary some time ago. He said at that time that he would consider it, and I have no doubt that he will do so. As to the question put by my hon. Friend (Sir J. D. Rees) I think that was the case.

Would the Under-Secretary suggest that he himself should go to the West Indies during the Recess and then the Colonial Secretary might undertake to answer questions in the House next Session until he returns?

I am not sure that it would be within my province to make that suggestion officially and I might have my own views about it.

asked the Secretary of State for the Colonies whether representative workmen's associations in Trinidad have made demands to the Governor for an eight-hour working day; and what steps are being taken to comply with this demand?

I have no information on this subject, but will ask the Acting Governor for a report.

asked the Secretary of State for the Colonies whether a Commission was appointed to inquire into the conduct of the constabulary during the industrial unrest of 1919 in Trinidad; "whether this Commission has reported to the Governor of that Colony; whether this Report has been published; and, if not, whether he will take steps to have it published without delay?

Such a Commission was appointed and has reported. It is not possible to publish the report in extenso, because many of the witnesses gave their evidence on the understanding that their identity should not be disclosed; but the Officer Administering the Government is being authorised to publish the conclusions at which the Commissioners arrived, if he thinks it advisable to do so.

asked the Secretary of State for the Colonies whether the Trinidad Shop Hours Ordinance Act, No. 45, 1920, provides for the regulation of the opening hours of shops and also of premises licensed for the sale of intoxicating liquors; whether the Governor in Executive Council has power to make closing orders under this Ordinance; in respect of which classes of shops have closing orders been issued under this Order, and what hours were fixed; and whether, in view of the fact that the clerks of provision and rum shops of the town of Port of Spain are employed from 6 a.m. to 9 p.m. and on Saturdays from 6 a.m. to 10 p.m., a closing order has been made, or is to be made, applying to these shops?

The answer to the first two parts of the question is in the affirmative. No orders issued under the Ordinance have yet reached me, but I will enquire of the Acting Governor whether it is intended to make orders relating to the hours of opening of provision and rum shops in Port of Spain.

asked the Secretary of State for the Colonies how many British subjects have been deported from Trinidad during the years 1919 and 1920, respectively; whether these deportees have been declared undesirable by a court of law; and what is the legal procedure under which a British subject can be deported from Trinidad?

As far as I am aware the number of British subjects who have been deported from Trinidad during the period mentioned is three. The deportations were effected under the Order-in-Council of the 26th October, 1896, which empowers the Governor, acting in the interests of public order and security, to order any person to quit the Colony.

asked the Secretary of State for the Colonies if he will state the terms of the Clauses on the recruitment of labour in the contract given to A. H. Cipriani, member of the Legislative Council of Trinidad, for the work of reclaiming the Caroni swamp; and whether the Habitual Idlers Ordinance is to be enforced so as to obtain labour for work on this scheme?

Before the hon. Gentleman answers this question, will he say whether it would not be a good thing to use the Habitual Idlers Ordinance to assist to reclaim this swamp, which, like the habitual idlers themselves, is a great danger to the whole community?

I think the hon. Gentleman will find that his point is met by my reply. No copy of the contract with Mr. Cipriani for the reclamation of the Caroni swamp has reached me, but I may say at once that there could be no question of enforcing the Habitual ldlers Ordinance for the purpose of obtaining labour for this, or any other work, and I am surprised that such a suggestion should have been made. It is improbable that any persons determined by the magistrates to be habitual idlers would be employed upon a contract work, but it is undoubtedly within the discretion of the Governor to employ these persons upon such work as he may consider appropriate to the circumstances of their cases.

asked the Secretary of State for the Colonies, if he will explain the method of making appointments to the Civil Services of Trinidad?

The higher offices of the Government service in Trinidad are usually filled by the promotion of officers already in the Colonial service, either in Trinidad or elsewhere. The lower offices, not requiring professional qualifications, are usually filled locally. Officers appointed from without the colony are either selected by the Secretary of State or engaged by the Crown Agents for the Colonies, according to the class of appointment.

Is it within the hon. Gentleman's knowledge that the members of the West Indian Federation Committee are as numerous as the number of questions which they have inspired to-day?

British North Borneo Company

asked the Secretary of State for the Colonies whether he is now able to state the result of his consultation with the British North Borneo Company on the subject of the number of contracted labourers in the territory of British North Borneo who, since the Ordinance No. 9 of 1916, have been sentenced to the penalty of whipping?

No, Sir; the matter was brought to the notice of the British North Borneo Company in an official letter of the 6th August, to which no reply has yet been received.

Will the reply be hastened, because this is a very serious allegation?

I do not think that there has been any delay. It is only a week ago that he wrote about it.

Emigration to Australia

asked the Secretary of State for the Colonies if he will state how many emigrants approximately have left the United Kingdom for the Commonwealth of Australia during the present year; what special steps are now being taken by either His Majesty's Government or the Government of Australia to induce and enable emigration from Great Britain to the Commonwealth; what is the present state of the labour market as regards unemployment in Australia; and whether any considerable number of intending settlers in Australia have returned to this country during the present year?

I have been asked to reply. The emigration returns of the Board of Trade are only available for the first quarter of the current year and the figures for Australia and New Zealand are given together. During that period the total number of migrants of British nationality who proceeded from the United Kingdom to those Dominions was 11,111. At present, His Majesty's Government are granting free passages to ex-service settlers who are approved by the Commonwealth Government. The number of settlers who proceeded under that scheme, from the beginning of this year to the end of July, was 6,062. The Commonwealth Government are also granting assisted passages to certain classes of settlers from this country. As regards the present state of the labour market in Australia, whilst in one or two States there is unemployment in certain industries, there is an unlimited demand for men upon the land and for women in domestic service. The answer to the last part of the question is in the negative.

Which class of labourers are being assisted by the Commonwealth Government at the present time?

I cannot give a precise answer, but they are largely those nominated by relatives or friends who are already in Australia, and mainly of the class for whom employment is available.

Palestine (Jewish Immigeation)

asked the Secretary of State for the Colonies, whether immigration of Zionists into Palestine is at present stopped; how many Zionists have been imported into that country; and whether he has any information as to meetings of Zionists expressing discontent with their conditions in Palestine?

Immigration of Zionists and other Jews into Palestine, which was temporarily suspended as a result of the recent disturbances at Jaffa, has now been resumed and is proceeding under close supervision. With regard to the second part of the question, I would refer my hon. and gallant Friend to the reply given to the hon. Member for Eastbourne on the 8th of August. I have no information as to the last part of the question.

Kenya Colony (Labour Ordinance)

asked the Secretary of State for the Colonies whether, subsequent to the publication of the compulsory labour ordinance of Kenya colony, the convention of associations decided to reduce, and have succeeded in reducing, the wages of the natives; and whether, if this is, as stated by him, due to an excess in the supply of labour over demand, the recently increased taxes upon the natives will now be reduced and the Ainsworth and other circulars, designed to stimulate the supply of labour, repealed.

As regards the first part of the question, I would refer the hon. and gallant Member to the reply which I gave to the hon. Member for Barnard Castle on the llth August. As regards the second part, I understand that owing to trade depression there is a temporary surplus of native labour in Kenya, but I would remind the hon. and gallant Member that trade depression increases the difficulty of reducing taxation; and I am not aware that any reduction in native taxation is proposed I am, in conjunction with the Governor of Kenya, giving careful consideration to the question of compulsory labour generally, but I am not yet in a position to make any statement.

Lunatic Asylums (Visiting Committees)

asked the Secretary of State for the Home Department whether, in view of the fact that at least half the inmates of county lunatic asylums are women, he will take steps to get the Lunacy Laws so amended as will enable county councils to co-opt women as members of the visiting committees of those institutions, as can be done in the case of committees under the Mental Deficiency Act, but which they are prevented doing in many instances now owing to there being no women members of the county council and, as the law stands at present, there being no power to co-opt non-members?

The point shall be borne in mind when the amendment of the laws in regard to lunacy is proposed.

Side-Caes, London

asked the Home Secretary whether, in view of the success which has attended the introduction of the side-cars plying for hire in cities such as Paris and in towns in this country, he can state why they are prevented from being introduced into London?

I have no fresh information since that given in my reply on the 22nd February last to the Noble Lord the Member for South Battersea. In view of the recommendation of the Departmental Committee on the Taxation and Regulation of Road Vehicles, dated the 6th January last, that it was not desirable that licences should be granted to side-car taxicabs to ply for hire in the London area at present, it is too early, I fear, to reopen this question.

Scotland

Corn Production Act

asked the Secretary for Scotland who is entitled to the £4 per acre for oats, under the Corn Production Act, in the case of a change of tenancy, the incoming tenant taking over the 1921 crop by valuation on the fiars prices of March, 1920?

I would refer my hon. and gallant Friend to the replies to questions on this subject given by me to my hon. and gallant Friend the Member for Dumfries on the 25th July and 9th August, and to the provisions of Subsection (1) of Section 3 of the Corn Production Act, 1917, which governs the matter.

Regimental Colours

asked the Secretary for Scotland whether, on the 1st November, 1919, he received a deputation from representative national bodies in Glasgow and Edinburgh, bearing a petition for presentation to His Majesty the King, praying His Majesty to accord to Scottish colour-bearing regiments the right to carry the banner of St. Andrew, the national flag of Scotland, with His Majesty's crest for Scotland on the colour pike as a second or regimental colour, in the same manner as the banner of St. George, the national flag of England, with His Majesty's crest for England on the colour pike, is borne by certain English regiments of the British Army; whether the petition has been presented to His Majesty; and whether he can make any statement on the subject?

The answer to the first and second parts of the question is in the affirmative. With regard to the third part, I am in consultation with the War Office, and hope shortly to be in a position to make a statement on the subject.

Will the right hon. Gentleman communicate this to the authors of the deputation?

Agrarian Offences (Convictions)

asked the Secretary for Scotland whether he is aware that several ex-service men who were convicted of agrarian offences some months ago were arrested last week and conveyed to Inverness, there to undergo a sentence of 60 days' imprisonment; whether at Inverness station they were cheered by a large crowd; and whether, seeing that they quietly submitted to arrest and in view of the generally high character of these men, their services in the War, and the length of time elapsed since their conviction, he will now regard the law as sufficiently vindicated and order their immediate release?

I am aware that the sentence of imprisonment is being enforced in the case of eight men who were found guilty of breach of an interdict granted in the Sheriff Court at Lochmaddy. These men were sentenced each to pay a fine of £5, with the alternative of 30 days' imprisonment, and to find caution to the amount of £10 that they would obey the interdict for 12 months. Although several months have elapsed since the sentence was pronounced, the fines have not been paid. The position therefore was either that the Order of the Court should be disregarded with impunity, or that the sentence should be enforced. I regret that I cannot accept the view that the law is sufficiently vindicated unless there is reason to anticipate that it will be obeyed. A definite undertaking by the men concerned that they would in future observe the terms of the interdict might, however, influence the attitude of the Court on this aspect of the matter. I should be glad were I placed in a position to bring such an undertaking to the notice of the sheriff for his consideration.

In view of the fact that crofters have been planted on the land and that a reclamation of them would be a breach of the interdict, will that be taken into consideration in any undertaking of that sort?

I am quite willing to take into consideration any relevant arguments in regard to these men.

Is the right hon. Gentleman aware that the dispute in regard to this land is in process of settlement and that the whole dispute is now closed?

I hope my hon. Friend will use his influence with these men to give the undertaking to which I have referred. If that be done, I think peace may be restored.

( by Private Notice ) asked the Secretary for Scotland if his attention has been directed to the cases of Angus Macaulay and Donald Macdonald, two of the eight ex-service men who have been arrested and imprisoned in default of payment of fine for unlawfully settling upon the Balranald Estate, North Uist, in the absence of any provision being made for them by land settlement authorities; if he is aware that these two men were arrested while serving their territorial training with the 4th Camerons; that they in common with the other six men were refused an adjournment in order that they might secure legal defence and were dealt with summarily, have been at liberty for several months and have only recently been arrested and imprisoned, and whether he proposes to take measures to institute a rigid inquiry into the cases and liberate the men pending such inquiry?

I would refer my hon. Friend to the reply which I have given to-day to the question by my hon. Friend the Member for the Western Islands (Dr. Murray). As the men referred to were arrested and imprisoned in respect of a sentence already pronounced I do not think that any question of adjournment or of the provision of legal advice arises. The facts of the cases are well ascertained, and I do not therefore see that any useful purpose would be served by an inquiry.

Will the right hon. Gentleman bear in mind that one of the salient facts of this case is that men were refused, at their original trial, an adjournment in order that they might procure legal defence, and therefore there is the strongest possible presumption that the whole proceedings against them are illegal, because they have not been in proper form. There was a misapplication of the law in refusing these men an adjournment, and under the circumstances does not the right hon. Gentleman think the whole case ought to be more closely inquired into?

The whole case has been very closely inquired into, and according to my information, which is full and precise, the procedure throughout was entirely regular. I am well aware of all the circumstances to which the hon. Member refers, and I beg of him, as I did of the hon. Member (Dr. Murray), to induce these men to give the undertaking I have referred to, in which case I am quite certain the court will take a merciful view of their position.

Post Office

Telephone Service

asked the Postmaster-General whether he has received representations from agricultural authorities asking that in every village the railway station or the post office shall be provided with a public call office; and whether he is taking this or any other means of providing the rural population with telephone facilities comparable with those of their competitors in other lands?

I have received representations on the subject and am ascertaining what additional rural call offices can be provided at small expense. An active canvass is also being made for rural party line subscribers.

Is it not the fact that every public call office with a 3d. call is a loss to the Post Office?

Postcards

asked the Postmaster-General whether, in view of the diminution in the number of postcards requisitioned for sale at post offices, he will consider the desirability of restoring the former practice of selling postcards at the face value of the stamps embossed upon them?

The practice of selling postcards at the face value of the stamps was discontinued about four years ago on account of the increased cost of manufacture. My right hon. Friend does not see his way to restore the former practice so long as manufacturing costs remain at their present level.

Does the right hon. Gentleman realise that this is almost the only country in Europe in which you cannot buy a postcard at the face value of the stamp printed on it?

Yes, and I realise also that the cheapness of the stationery sold by the Post Office has always been a very great grievance of the stationery trade.

Continental Postal Rates

asked the Postmaster-General whether any account or estimate is kept by his department of the postal matter posted in this country to France, Austria, and Germany, and also of the postal matter received from the same countries for delivery in this country; and can he state, approximately, whether, under the international postal argreement, this country gains or loses in its postal revenues in connection with these three countries?

Statistics of weights of mails exchanged between countries of the Postal Union were taken during the first 28 days of May last, and these show that the Mails despatched from this country to France, Austria and Germany in each case exceed in weight those received from the countries in question.

Circulars Posted Abroad

asked the Postmaster-General whether his attention has been called to circulars issued by an established advertising firm in the City of London and posted in Ostend, Belgium, to other firms in the City of London; whether these circulars have to be de livered free by the British post offices here; whether on such circulars posted in Belgium the British Post Office do not receive a farthing of revenue; whether the cost of delivering such circulars to thousands of different addresses in this country is a great charge on post office expenses; and whether he can state if there is any postal revenue received in this country for postal deliveries in Belgium that in any way balance the cost of circulars and other matter now being posted in that country to Great Britain?

Under Postal Union Regulations the country of destination receives no payment for the delivery of correspondence received from abroad; but as the weight of printed papers, etc., sent to both France and Belgium is normally much greater than that received from those countries, there is no adverse balance against the British Post Office.

Will not that very shortly be altered if these Regulations continue to exist?

asked the Postmaster-General whether his attention has been called to the fact that the Oatine Company, in consequence of the new postal rates, circularise their 8,000 customers in this country by sending the letters in bulk to their agent in France who posts them back to England; whether he is aware that in a circular letter to their customers they say by doing this they effect a saving of £16 each time they circularise the said customers; and whether he can take such steps as are necessary to prevent the loss to his department of this large amount of money?

The sending of letters in bulk to an agent abroad to be posted by him is an offence under the Post Office Act, 1908; and if evidence be obtained of such infringement of the Act a prosecution will be undertaken.

Will the right hon. Gentleman accept from me a letter from this firm in which they make a boast of doing this. Is this not an incentive to others to follow their example?

Would it not be better to revise the postal rates so as to enable people to post their letters in England?

Ex-Service Men

Post Office Savings Bank

asked the Postmaster-General whether there are now employed at the Post Office Savings Bank, Blythe Road, West Kensington, 1,195 temporary women clerks and only 282 ex-service men temporary clerks; and what is the reason for the small percentage of ex-service men employed?

I would refer the hon. Baronet to the reply given on the 10th instant to a question put by the hon. and gallant Member for Willesden West.

Can the right, hon. Gentleman assure the House that the Lytton Committee's recommendations are being put into force by his Department, and that women and temporary clerks who did not serve in the War are being got rid of in favour of ex-service men?

Yes. It was stated in the answer referred to that

"1,538 temporary clerks are employed in the Savings Bank Department, of whom 281 are ex-service men. The remainder, with the exception of seven non-service men, are women, and include 250 part-time clerks. Most of the women are employed on women's work. There is a Substitution Committee at the Savings Bank Department, and since the date of the first Lytton Report over 100 temporary female clerks have been substituted by ex-service men. The Committee is continuing its functions."—[OFFICIAL REPORT, 10th August, 1921; col. 461, Vol. 146.]

Government Departments

asked the Prime Minister if he can give an assurance to this House before it rises that instructions have been given to all Departments of the State to give preference in employment, wherever possible, to ex-service men; and that, when reductions of staffs are necessary, the dismissal of ex-service men should as far a possible be postponed until after the dismissal of others who have not served?

Instructions to this effect have already been given to all Departments.

Questions

North Eastern Railway Company

46 and 47.

asked the Prime Minister (1) if the Government is in possession of a copy of the agreement made in 1912 between the North Eastern Railway Company and their deputy manager, the present Minister of Transport, under which a sum of £50,000 was paid to him in 1918 out of the taxpayers' money; if so, will he lay it before the House of Commons;

(2) if the money liability under the 1912 agreement between the North Eastern Railway Company and their then deputy manager, the present Minister of Transport, only became payable in the event of the nationalisation of our railways?

I have nothing to add to the reply given on this subject by my right hon. Friend the Prime Minister yesterday.

As I have not had an answer to either of these specific questions, may I ask whether nationalisation of our railways was one of the conditions of the payment of this £5,000? If the right hon. Gentleman wishes us to believe that he does not know, may I ask him whether the Attorney-General had this agreement before him when he advised the Government that it was a Government payment, and, if so, does he consider so little of these questions, which have been going on since 1920, that he does not even take the trouble to answer specific questions dealing with the terms under which this payment was made to one of his own colleagues?

I do not know whether the right hon. Gentleman is going to reply?

The right hon. Gentleman has given the answer that he has nothing to add.

Am I not entitled to an answer to the supplementary question I have put to the right hon. Gentleman?

I had not put this question to him before, and therefore it cannot be that he has nothing to add in answer to a question which was not previously put. May I have an answer to that question?

I was rising to reply when the hon. and gallant Member for Central Hull rose.

I gave way to the hon. and gallant Member in courtesy, and he should not reproach me now. I did not rise later, Mr. Speaker, only because you yourself had intervened. I have not seen this agreement, but all relevant considerations were before the Law Officers when they advised the Government, and the Government acted upon the advice which they received from the Law Officers.

As that is not an answer, I shall ask leave to move the Adjournment of the House.

How is it that the right hon. Gentleman, as Leader of the House, and therefore responsible to the House for the Cabinet decision, can say now that he personally has never seen that agreement, when a few days ago he said to me that it was within the knowledge of the House?

The hon. Gentleman imputes to me again to-day a statement which, as you, Mr. Speaker, pointed out from the Chair the other day, I have not made. I did not say that the House had seen this agreement. I did not say that the agreement between the North Eastern Railway Company and their former deputy general manager was within the knowledge of the House. I said that the agreement between the Government and the railway companies was within the knowledge of the House, and that it was in pursuance of advice received from the Law Officers as to the. bearing of that agreement on this payment that it was accepted as a proper charge for working expenses.

Is it not the case that when we took over these agreements this agreement must have been within them, and therefore within the knowledge of the House? What is the use of quibbling?

Greece and Turkey

asked the Prime Minister whether there is any restriction on the types of munition's which British private armament firms may supply to the Greek and Turkish armies during the present war; and whether the export of poison-gas shells is being permitted?

The answer to the first part of the question is in the, negative, but His Majesty's Government intend to prohibit the export of poison gas shells to either belligerent.

asked the Prime Minister whether any blockade of the Turkish coasts has been declared by either Greece or the Allies; what is the extent of the coast blockaded; and whether the British Navy is being used to protect British merchants engaged in the arms traffic, to either the Greek or Turkish forces, from molestation?

Is the right hon. Gentleman aware that unless a blockade has been proclaimed and is enforced, no British ship nor any other ship can be stopped by Greek warships? Is he aware that a munition ship was stopped this week by Greek warships, and will the law be enforced?

I would prefer not to answer without notice questions bearing upon international law.

My question is, if no blockade is enforced, will the British Government see that the law is maintained and that British ships are not interfered with?

The hon. and gallant Member makes his statement as to what international law is in the form of a question. If he will put it on the Paper, I shall be better able to judge of the completeness and correctness of his information.

Secretary of State for the Colonies (Title)

asked the Prime Minister whether he is aware that, in answer to a question on 10th August, 1916, it was officially stated by the then Prime Minister that he had no evidence that any of the Dominions desired a change in the title of the Secretary of State for the Colonies; whether the evidence of such a desire is now at the disposal of the Government; and whether any decision has been arrived at?

The answer to the first part of the question is in the affirmative, and to the last two parts in the negative.

National Expenditure (Business Committee)

Members and Terms of Reference

asked the Prime Minister whether he can now give the names of the Members of the Business Committee which is to advise the Treasury respecting the national finances?

asked the Prime Minister whether he can state the terms of reference and composition of the Committee to be presided over by the Minister of Transport; whether a special staff will be required, and, if so, at what cost; whether this Committee will take evidence; and whether the evidence taken by the Committee, as well as the Report, will be available for the Estimates Committee of this House?

The Committee will be composed as follows:

The terms of reference are as follow:

"To make recommendations to the Chancellor of the Exchequer for effecting forthwith all possible reductions in the national expenditure on supply services, having regard especially to the present and prospective position of the revenue. In so far as questions of policy are involved in the expenditure under discussion, these will remain for the exclusive consideration of the Cabinet; but it will be open to the Committee to review the expenditure and to indicate the economies which might be effected if particular policies were either adopted, abandoned, or modified."

The Treasury organisation will be employed in the ordinary course for the purposes of the Committee's work, and some other members of the Civil Service will be seconded for service in the Treasury under the Committee.

The Committee will be provided with all information requisite to enable it to perform its task, but I do not anticipate that they will find it necessary to take formal evidence. The question of publishing its Report will remain for consideration.

Can the right hon. Gentleman say what is the size of the staff that will be attached to this Committee, and also what salaries are going to be paid to them?

The size of the staff attached to the Committee for purposes of investigation will not, I anticipate, be any larger than would have been the size of the staff supposing that I personally had been undertaking the whole inquiry myself. They will be officials of the Civil Service whose experience and knowledge are regarded as fitting them to the best advantage for the work. So far as expense is concerned, there will be no extra expense.

If the Committee does not take evidence, will the same information as is supplied to them be supplied to the Estimates Committee of the House?

The question which my hon. Friend asks me is quite obviously founded upon a misapprehension. The Estimates Committee of the House are appointed to investigate such Departmental Estimates as they see fit to examine, and to report to the House upon the particular Estimates which they do examine. The purpose of this Committee is a far wider and greater one. We want the whole expenditure of the country to be examined with regard to all the Departments, and not merely a fitful examination of any particular Department. We wish the matter to be taken into account as a whole, having regard to the revenue that the country may expect to have. As my hon. Friend will see, the purposes of the two Committees are entirely different. So far as the Estimates Committee is concerned, it will still have its function to perform with regard to any Departmental Estimates that it sees fit to examine, because, after this Committee has advised the Chancellor of the Exchequer, it will still be necessary for the Departmental Estimates to be prepared, and such Departmental Estimates as the Estimates Committee desires to examine will become the subject of its particular investigation.

With regard to the composition of the Committee, how is it that there are two Members of the other House of Parliament—which is not specifically charged with the care of taxes—and only one Member of this House of Commons, and he a recent Minister, there being no Private Member of the House of Commons at all?

I take full responsibility for the selection of the Committee, and I hope the House will remember that it is upon my shoulders that that responsibility lies. It may be that I am wrong in my selection, but I have selected the names of these gentlemen because of the particular experience that they have had in business. After all, it is not enough to refer to Lord Inchcape and Lord Faringdon as being Members of the other House. They are men of very eminent capacity, as is well known, and this House has so often complained that the Exchequer has not taken sufficiently into account the business methods of people outside that I think it can scarcely complain of the selection I have made.

When will the right hon. Gentleman tell the House whether the Report will be published or not, it being a most important matter, and also, are not two of the gentlemen whose names he has mentioned as being members of the Business Committee over 70 years of age?

Of course it is only extreme youth that has the right! As was said long ago, youth is not always infallible, and age sometimes has experience. So far as the date is concerned when I shall afford information, I hope the House will realise that this is a Committee upon which the Chancellor of the Exchequer will rely for advice and guidance. Accordingly, it will be for consideration afterwards, at the end of the time when they have completed their investigations, whether the material is of such a character as should be published or not. At least we must take time to consider that.

Is there any obligation on the right hon. Gentleman to follow the recommendations of this Committee?

Of course there can be no obligation to follow the recommendations, because that would be to put into the hands of the Committee the powers of Government, and no Government could surrender those powers.

May we take it now that the right hon. Gentleman the Member for Cambridge is no longer Minister of Transport, but a private Member presiding over this Committee?

Of course, as the hon. Member knows, the present Minister of Transport is demitting his office. That is not definitely determined, but if the suggestion made is that he will not be in a position to perform his duty as chairman of the Committee, then I, as the person responsible, take a different view from the hon. Member.

In view of the great difficulty of discussing this matter by question and answer, subject to your discretion, Sir, I give notice that it will be raised on the Consolidated Fund Bill to-day.

asked the Chancellor of the Exchequer if the Advisory Business-men's Committee will consider the waste incurred in the maintenance under 12 Government Departments of separate public medical and nursing services with separate institutions and personnel, separate means of recruitment, separate purchase of stores and equipment, often overlapping, often in peace-time redundant, to meet needs which to a large extent are the same, and on active service were often discharged by mutual assistance; and whether in any such consideration they will be assisted by persons having direct experience of such services?

Pending detailed examination of the Departmental replies to the Treasury Circular of 13th May last, it would be premature for me to express an opinion with regard to the alleged duplication of machinery, but the matter will be carefully investigated.

Questions

Irish Republican Army (Requisitions)

asked the Lord Privy Seal if he is aware that forced requisitions are being levied in Ireland by the Irish Republication Army, with threats to burn and destroy property if the money demanded is not paid, notwithstanding the truce; if these proceedings are in accordance with the terms of the truce in Ireland; and, if not, what steps it is proposed to take?

Forced requisitions of arms or money for the equipment of the Irish Republican Army would certainly be regarded by His Majesty's Government as being contrary to the terms of the truce agreed with the Sinn Fein leaders, and inquiries are at present being made in a number of cases in which such demands are alleged to have been made.

Unemployment Act, 1905

asked the Lord Privy Seal why the Unemployment Act of 1905 is included for renewal in the Expiring Laws Continuance Bill; whether its utility has ceased owing to later legislation; what were the establishment charges of the London central body and of the distress committees under this Act from July, 1919, to June, 1920, and from July, 1920, to June, 1921; what staff is employed in connection with the various bodies brought into existence by the Act; how often have either the London central body or the distress committees met; what is the record of their work during the last 13 months, when more people than ever before have been out of work in this country; and whether, under the circumstances and in the interests of public economy, the Act can be allowed to lapse?

The policy in regard to measures for dealing with unemployment which has recently been adopted by the Government has not included the payment out of public funds of any grant towards expenditure incurred by bodies constituted under the Unemployed Workmen Act, 1905, and it is not at present contemplated that there shall be any change of policy in this respect. In view, however, of the existing state of unemployment, it has been thought advisable, as a measure of precaution, to continue for a further period the machinery provided by the Act. As regards the questions of detail asked by my hon. Friend, the answer is somewhat long, and I will circulate it in the OFFICIAL REPORT. But I may say that the net expenditure amounts to only a few hundred pounds.

The following is the answer:

I have no complete information as to the extent to which the Local Distress Committees have recently been exercising their powers under the Act, but, with two or three exceptions, they appear to have been almost, if not entirely, inactive. As regards the remaining points in the question, I am informed by the Central (Unemployed) Body for London as follows:

(1) The gross establishment charges of the Central Body from July, 1919, to June, 1920, and from July, 1920, to June, 1921, are, respectively, £2,700 9s. and £2,338 13s. 3d. Against the gross expenditure there has to be placed revenue derived from the collection of emigration loans, bank interest, and other sources amounting to £2,034 18s. 3d. and £1,560 1s., leaving the net expenditure on rate fund account £665 10s. 9d. and £778 12s. 3d., respectively. The gross expenditure during the present financial

(2) The Central Office staff consists of three officials.

(3) During the two periods the Central Body has met on two occasions and one occasion, respectively. In addition, the standing and other committees have meton 24 and 19 occasions, respectively.

(4) The record of work performed for the last 13 months consists primarily of financial and administrative duties in connection with the maintenance and supervision of Hollesley Bay Colony, which is administered on profitable lines with every regard to economy, in the conservation of the interests and resources of the Body, the collection of emigration loans, and various official and routine duties.

North Eastern Railway Company

I beg to ask leave to move the Adjournment of the House for the purpose of discussing a definite matter of urgent public importance, namely, "that the present Minister of Transport should not continue as Chairman of the Chancellor of the Exchequer's Business Committee while the Government refuses to disclose the reasons for the payment by them to him, while a Member of the House and the Cabinet, of £50,000 out of the taxpayers' money under an agreement made in 1912 between him and the North Eastern Railway Company, which agreement is not within the knowledge of the House."

This is not a matter' which comes under the Rules as to definite matters of urgent public importance. The facts have been before the House for quite a long time. No new-matter has arisen. So far as the other part of the Motion is concerned, it can be discussed in the course of to-day on the Consolidated Fund Bill.

We cannot get the facts. The Government absolutely refuse to tell us anything about the document.

May I respectfully submit to you, Mr. Speaker, that the real point of my hon. Friend's Motion for the Adjournment is to get the Government to publish documents which they claim are of an official nature, and which they refuse to publish? May I suggest that no Debate on the Appropriation Bill would compel them to produce the documents, whereas an Adjournment Motion might possibly induce them to do so?

Is not the whole point in favour of urgency the fact that at the present time it is suggested that it is suggested that the right hon. Member for Cambridge (Sir E. Geddes) should act on a Select Committee to inquire into expenditure, and is it not essential that before that can be considered we should know what this agreement was of which hitherto we have had no knowledge? The matter of urgency, I submit, comes in, seeing that we are to debate, either to-day or to-morrow, the question of this Committee on Expenditure, and we shall be answered and obstructed in that Debate by ignorance in regard to this agreement. Therefore, I submit that it is appropriate that we should have the Adjournment to-day in order that the agreement may be produced.

Is it not a matter of urgent importance that we should know and see the documents on which the Government say they have paid over £50,000 of public money to a certain individual? Are we not entitled as a House of Commons to see that document before the Debate takes place?

A great many questions are being put on points of Order which profess to be based upon statements of fact. I only wish to put in a caveat that I am wholly unable to accept as accurately stated the facts as given in these questions.

May I make an appeal to the Prime Minister, who, I know, is very careful in these matters, that he will look into this question and let the Members of this House have a chance of inspecting this agreement on which public money has been paid?

Is not the point at issue whether the £50,000 was properly debitable to working expenses, and has it not been shown that if that debit is disallowed a similar debit must be disallowed, whereby the taxpayers gain £105,000, and is it not extremely urgent that £55,000 should be left in the taxpayers' pocket which they would lose if this Motion is carried?

In the Debate this afternoon I will try to observe the hon. and gallant Member for Holborn (Sir T. Remnant).

On a point of Order. I respectfully submit that a document which involves the payment of £50,000, advanced by the Exchequer, becomes a public document, and it has always been the custom to submit such documents for the inspection of Parlia- ment, unless it can be shown that there is some danger to the public service by its publication.

I cannot admit that at all. If it were an official document, of course I should at once allow the Motion.

If you rule that it is not an official document, is it not definite and urgent that we should know why £50,000 has been spent on an unofficial document?

Local Legislation Committee

Special Report brought up, and read.

Special Report to lie upon the Table, and to be printed.

Minutes of Proceedings to be printed.

Shops (Early Closing) Act (1920) Amendment Bill,

"to extend the hours during which sweets, chocolates, or other sugar confectionery, or ice cream may be sold to the public," presented by Sir WALTER DE FEECE; supported by Captain O'Grady, Mr. Clement Edwards, Sir John Rees, Mr. Kiley, Captain Gee, Sir Arthur Shirley Benn, Sir Kingsley Wood, and Mr. Newbould; to be read a Second time To-morrow, and to be printed. [Bill 212.]

Orders of the Day

Consolidated Fund (Appropriation) Bill

Order for Second Reading read.

Motion made, and Question proposed, "That the Bill be now read a Second time."

Paris Conference

Prime Minister's Statement

I think it is the view of the House of Commons that I should, at the first opportunity the rules of the House permit, give the purport of the decisions taken at Paris last week, at the meeting of the Supreme Council.

It was in many respects the most important meeting held since the declaration of peace. There were questions there which menaced the solidarity of the Alliance. I feel, and I am certain that feeling will be participated in by every Member of this House, that the unity of the Allies is a guarantee for the peace of Europe. If we were to break up, each seeking his own, without reference to others, the dangers of conflict would be multiplied, the incentives to accommodation would be weakened, and the perils for the peace of the world would be incalculably enhanced. That is why the meeting last week was one of the most momentous which has been held, and it is a matter of great gratification that at the end of it a Resolution was passed, not merely that the Alliance should continue, but that the spirit of that Alliance is as strong as ever.

Upper Silesia

The question which gave us the greatest anxiety was the question of Silesia, in many respects one of the most delicate and dangerous questions that have yet been raised, but in itself comparatively one of the easiest problems that came up for solution. Settled on its merits geographically, economically, statistically, it never seemed to me, nor to any of my associates, to present any insuperable, or even any very great, difficulties; but it was complicated by the introduction of other elements which converted it into rather a menacing problem. There were large sections of French public opinion who believed that the taking away of the coalmines, the zinc mines, the iron works of Germany is essential to the security of their country. That I believe to be a delusion. Then there were questions of arrangements which had been made for working the mines, and these rather complicated the problem, which in itself was by no means a difficult one.

4.0 P. M.

Silesia is not a Polish province. Four-fifths of the population is German. Out of a population of 5,100,000, some 4,000,000 is German. My history has been challenged in respect of Silesia, but those who have some doubts about it I would refer to that very impartial authority, the "Encyclopædia Britannica," which was written long before the Peace Conference, and long before there was any dispute with respect to Silesia. It is admitted that the population is overwhelmingly German, and, as happens in these countries which are on the frontier, the nearer you get to the frontier, the more mixed the population becomes; and near the Polish frontier you have a very considerable mixture of Poles. In the first draft of the Peace Treaty, the whole of Upper Silesia was given to Poland. This was sent to the Germans with a view to elicit their comments, and to hear their criticisms and their reasons for criticisms. They challenged the provisional decision of the Allies on the ground that Upper Silesia was German in population. That was doubted, but we felt that a sufficient case had been made, at any rate, for referring the question to the decision of the people themselves. That, it is true, was due to the action of the British delegation.

The British delegation met in Paris. It consisted of almost all the members of the British Cabinet, representatives from all the Dominions, and a representative from India. After very careful consideration, they felt that a case had certainly been made for referring the matter to the decision of the population of Upper Silesia. That was accepted by the Allies. The total votes cast were 1,190,000. Out of those, 707,000 voted for Germany and 479,000 voted for Poland. Roughly, seven-elevenths voted for remaining in Germany, and four-elevenths voted for Poland. The voting was unevenly distributed. Some districts were overwhelmingly German and some were overwhelmingly Polish. These presented no difficulty. There was complete agreement between the Allies that the Western part of Upper Silesia was overwhelmingly German, and, on the other hand, there was complete agreement among the Allies that Pless and Rybnik, which voted Polish, should be assigned to Poland. The importance of that lies in the fact that the future development of the coal measures is in the direction of Pless and Rybnik. They run South, or, rather, South-East, in the direction of these two places, and the development will be in that direction.

The dispute centered round the very important industrial triangle wedged in between these areas. The towns were German; the villages Polish. The nerve centres were German; the direction, the engineering, the planning—that was German. The skilled workmen were German. On the other hand, the unskilled workmen were Polish. The miners were divided. A good many miners came from German areas, and left for the weekend, going good long distances; but, taking the areas as a whole, the substantial majority was German. In this area, the industrial development, the capital, and the population were German. So that, upon the old principle of one vote one value, or one man one vote, it would have gone to the Germans. According to the same value of the skilled to the unskilled and of the capitalist to the worker, the majority was German.

The Italian Commission agreed with ours, and afterwards, when we set up a Committee of experts, the Italian experts agreed with our experts that this area ought to be accorded to Germany upon the basis of population. It was quite impossible to tear the villages from the towns, or the towns from the villages, because they were part and parcel of the same great scheme of industrial organisation, and it would have been quite impossible to create islands. Therefore, you had to decide where the whole should have gone, and the British and Italian delegates were of opinion that it ought to have gone according to the majority of the population.

On the other hand, the French experts took a different view. We had no interest in the matter, neither the Italians nor ourselves, except one, that of doing justice between the parties. The French had exactly the same interest, except that they were undoubtedly moved by the other factor which entered into their judgment, namely, the increase of French security by taking the mines and the zinc and the iron away from Germany, and handing it over to Poland. That was not a consideration which was included in the Treaty. There were most explicit directions as to what we were to consider. We were to consider the population, we were to have regard to economic and geographical considerations. The other was not one of the directions, and therefore we regarded it as being outside the purview of our considerations. If an injustice had been done, it would have rankled, and it would have provoked conflict perhaps in the near future, and certainly in the remote future, and there would have been no permanent peace in Europe.

It will be within the memory of the House that an attempt was made by Poland to anticipate the decision of the Council. There was a Polish insurrection in these territories, which bore a very remarkable resemblance to similar movements that had already taken place in Vilna and on the Russian frontier; and when it happened here we felt that if these things were tolerated without protest, the reign of international law would come to an end, and force would become supreme in the decision of these great frontier questions. That would have been fatal to peace. It would have been the establishment of a system of brigandage in Central Europe, in substitution for law. That was the reason why I took the very strong step here, in the month of May, fon entering an emphatic protest against recognising what was done as a fait accompli.

It was essential that warning should be given that, as far as Great Britain was concerned, however successful that insurrection was temporarily, we would not recognise it, and that there was only one decision which would govern the fate of Upper Silesia, and that was the decision of the body created by the Treaty of Peace, acting upon the principles laid down by the Treaty of Peace. Unfortunately, our High Commissioner's health broke down, but we were very fortunate in securing the services of a very able Indian administrator, Sir Harold Stuart. He has acted with great judgment, with great firmness, with great tact, and, largely owing to his services, acting in conjunction with the other High Commissioners, the insurrection in that area has been liquidated, and Allied authority has been re-asserted.

There was some delay in calling the Supreme Council, and it was soon apparent, after some discussion, that complete unanimity was quite impossible. There was always the complication of that element of security. You always felt that you were not discussing questions of statistics and geography or economic questions. There was always that other element which was paramount in the minds of our Allies Therefore, France would not have agreed to any recommendation acceptable to the other Allies. Under those conditions, we agreed, quite unanimously, to refer the question to the Council of the League of Nations. It may be said that it could have been done earlier. I do not think so. It certainly could not have been done earlier without the matter being a complete failure. In the first place, I am not sure that all the Allies were ripe for it. There was another difficulty which we had experienced after referring a similar question to the League of Nations—the question of Vilna. You had, first of all, to get rid of the insurrection. You could not have landed the League of Nations with that problem. They had not the equipment to deal with it. The Supreme Council were the only body who could really deal with this attempt by force to wrest the position, and the insurrection had to be cleared out of the way before you handed the question over to the League of Nations. I am certain that the proposal came at the only moment when it would have been acceptable, and at the only moment when it was likely to succeed.

It is not for me, and not for anybody else, to dictate to the Council of the League how they are to deal with the problem, but I am assuming that they are not going to pretend to deal with it themselves, to sit in judgment and hear evidence, and decide it for themselves. I am assuming that they will refer it either to a committee of jurists or to an arbitrator, and there is a provision for both in the Treaty. But it is very important that, before anything has happened, France, Italy, Japan, and ourselves are pledged to accept the decision of whatever body may be nominated by the Council to deal with it. It means that the parties will undoubtedly appear before the judicial tribunal appointed by the League. It will be tried just like any other frontier question upon the document, the basic document. There will be the evidence, there will be the documents, there will be all the considerations relevant to the trial of the case, judgment will be given by the arbitrator or by the jurists in the ordinary way, and all parities will accept it It is the most important question that has yet been referred to the League, and, undoubtedly, the reputation, the position, and the influence of the League will be considerably enhanced should it successfully deal with this most complicated problem.

The only other observation that I should like to make about it is this. Now that it has been referred, the whole question goes there, and not a part of it. I mean that they are not bound in the least by any proposals or counter-proposals made either by the French, by the Italians, or by ourselves with a view to effecting an arrangement. There were a good many things proposed with a view to a compromise. The French are not in. the least bound by any suggestion which they made with a view to meeting us. On the other hand, the Germans are not bound by any proposal made by the Italians or by ourselves, and the whole question of Upper Silesia will be dealt with on the basis of the Treaty, and will be heard by this tribunal. Owing to the delay which is inevitable, though I hope it will not be very great, because all the facts are there—there are no new facts to be elucidated, but still there will be some delay—it may be necessary to send reinforcements to prevent a recurrence of anything like the incidents which disturbed the peace of Europe in the early summer. We have agreed to contribute whatever may be necessary in that respect, that is provided that it be necessary. So much for the question of Upper Silesia.

Then there was another troublesome question as to the sanctions. The sanctions were those imposed by the Conference of London upon the Germans, when they failed to carry out two or three of the most important obligations under the Treaty. The sanctions were economic and military. No doubt the economic sanc- tions which are on the Rhine, especially the Customs sanction, were irksome and injurious, and could only be justified if Germany refused better arrangements. She accepted better arrangements. She is doing her best to carry them out with respect to reparation, and the Allies felt that to prolong these irksome Customs barriers on the Rhine, after Germany's acceptance of the other arrangements, would be unfair, and they agreed to terminate them. With regard to the military sanctions, the French felt that there were some of the Clauses of the Treaty which had not yet been carried out, notably those with regard to disarmament, and they proposed that the military sanctions should be kept for some time longer. But, at any rate, the matter is to be referred to the Military Committee sitting in Paris, and it is proposed to deal with the matter at the next meeting of the Supreme Council.

There was a general feeling that the time had come for a gradual reduction of the military burdens imposed upon Germany, in the matter of occupation and in the matter of controls. The expense absorbs resources which are just as much an interest to us as they are to the Germans themselves, for we have a direct interest from the point of view of reparation. Up to the present, the costs of occupation and the various controls in Germany have absorbed almost the whole amount which ought to be available for reparation; and, in addition, there is no doubt that they are a source of constant irritation. The sooner Europe settles down to normal the better. Germany is now exhausted and languid, but, as she recovers her vitality, military occupation and controls will become more and more irksome, and there will be a danger of episodes. We have decided gradually to reduce some of these commissions of control to the narrowest possible limit, and, with regard to the cost of the Armies of Occupation, we hope to be able to perfect an arrangement which will be more satisfactory to everybody all round.

As to the security of France, I quite understand the nervousness of the French people. There have been very distressing episodes within living memory which make it very difficult for France not to feel a legitimate apprehension of what may ensue if Germany were to repeat or to renew her attacks But the real security of France depends upon three things. The first is disarmament—I mean the disarmament of Germany. That is why the British Delegation at every meeting of the Supreme Council have always insisted on placing that first. They pressed at Spa for this, and they pressed it in London. We felt that it Was impossible to create an atmosphere of peace until France felt free from the menace of that great army which had inflicted such hurt on her within the last few years, because once those armies are dispersed it is impossible—I do not care what anybody says to the contrary—to build up great armaments in secret. It takes a long time. It always gets out. There was nothing that was done with regard to the big fleet of Germany which was not known to the Allies. There was not a ship laid down of which we did not know. There were no big guns of which we did not hear. We had an over-whelming superiority in big ships. That was what mainly concerned us. I venture to say that the same thing applied to France, whose main concern was about the army. You cannot build up these great armaments in secret. Anything which takes time is bound ultimately to come out, and therefore Germany could never build up anything which was comparable to her overwhelming superiority in armaments before the War, without its being known long before it had become a menace.

That is the first consideration for France. The second is this. The security of France and of Europe depends secondly upon the German's recollection of the ruin which the great war has brought upon their own country, and the third is this. It depends upon the knowledge which every aggressor must have that you bring the world down on you, and that initial success in the end only aggravates the ruin, by increasing the cost of defeat and the ultimate penalty which is imposed. Those are the real securities, one the disarmament; the second the knowledge which this generation will have as long as it lives of the ruin imposed upon their country by a war which they provoked; and the third the knowledge that whoever provokes war wantonly brings the whole world upon him, that mere initial success is not enough, and that in the end the greater the initial success the greater the disaster that will fall upon the aggressor. But I would like to say this. A nation which is exasperated by incessant provocation will not reckon the cost, and it is the knowledge that, if there were a wanton attack, the world would come to the rescue that is the real security for France. The other question which has been discussed was the financial one, but I will leave that to my right hon. Friend the Chancellor of the Exchequer (Sir K. Home). All I say is that there are substantial German payments which will inure to the advantage of this year's revenue in this country.

Asia Minor

I come now to another very difficult problem, that is the problem of Asia Minor. I would like first to give a short summary of the events which led up to the present position. The basis of the Treaty of Sevres was that the parts of the Turkish Empire which were Turkish should remain Turkish, those that were Arab should be Arab, those that were Armenian should be Armenian, and those that were Greek should be Greek. I will not deal with the Armenian or the Arab question, because they do not arise at the present moment, but I will refer first to the question of the dispute with Greece. Commissioners were appointed by the Allies to investigate questions of frontiers, questions of population, and, to a certain extent, to go into the history of these countries. The Commissioner appointed by Great Britain was Sir Robert Borden, the Prime Minister of Canada. There could not have been an abler, a more impartial, or a more judicial Commissioner. He represented the British Empire on the Commission to investigate these three questions. By his report, and the reports of the various experts assisting him, Smyrna and Thrace were assigned to Greece. This was accepted by the Supreme Council. The French experts came to exactly the same conclusion. There was danger of anarchy and its consequences in these various areas. So France occupied Cilicia, with a view largely to protect the Armenian population. The Italians occupied Southern Anatolia, from Adalia up to Scala Nuova, for the same purpose, and the Greeks were invited by the Supreme Council to occupy Smyrna and Thrace. If any part of those territories had been assigned to us for protection, it would have cost us scores of millions.

Then came the Treaty of Sevres, followed by the Nationalist insurrection. The Greeks were anxious to deal with it immediately, but were held back by the Allies. What has happened since shows that Venizelos was quite justified in the view which he took that he could have disposed of that insurrection without the slightest difficulty, because since then the Nationalists have gathered their forces, and in spite of that the Greeks have not encountered up to the present any serious difficulty. The Allies attempted mediation, but unfortunately the Sultan and his Government have lost control and authority; and when we made certain proposals with a view to compromise, unfortunately both parties refused to accept them.

I want to put to the House the dilemma with which the Allies were faced. The Greeks and Turks refused the compromise suggested by the Allies. There were two alternatives before us. The first was to compel both, because you could not compel the one without compelling the other. Two questions came before us at once. How? Whom? How are you to compel, and whom are you to compel? You might say you would compel the Greeks by threatening to bombard their towns, but what about the Turks? Is there anyone who would have suggested that we should have sent an army up to the mountainous areas of Asia Minor, to quell the Turkish insurrection, and to force the Turks to come to terms, to chase them from Eskishehr to Angora, from Angora onward, wherever it might be? It was an utterly impossible proposition. Therefore, the first alternative—compulsion—was ruled out. There was only one other alternative, and that was to leave both of them to fight it out. Some say we might have referred the matter to the League of Nations. What would have been the use of that? That would have been an unkindness to the League of Nations. How could they have dealt with it? They had only the means which the Allies could have placed at their disposal, and there was no Allied Power which would have sent an army for the purpose of enforcing a decision. Therefore, you had to leave both of them to fight it out.

Certainly, that is so. We have not given them arms, neither of them.

There is not a single gun, rifle or shell which has been supplied to either side—not one. These battles have been fought without any assistance from us either way. I am sorry to say that not only do I think that that was the only course, but I am afraid it was the best course. I will tell the House quite frankly why I think so. One is a reason that applies to the Turks, and the other a reason that applies to the Greeks. I will take the Turks first. The Mustapha Kemal Turks undoubtedly had an exaggerated idea of their own prowess. They conquered Asia Minor very easily. They gained some very easy victories in Cilicia, and they had a very exaggerated view of their own prowess, and a contemptuous estimate of the Greeks' military capacity. Their realisation that they were wrong in both those instances will make them none the worse neighbours for Greeks or Italians or Frenchmen or British. The Turk accepts a fact in the end when it is really driven into his mind.

I come now to the Greeks. There are Greek enthusiasts, on the other hand, who, I have no doubt, will realise soon that there are limits to what Greek resource and Greek valour and Greek skill can accomplish in the fastnesses of Asia Minor. War has one merit in that it does in the end teach a respect for facts. I think both these races will be easier to deal with when their own limitations have been brought thoroughly clearly to their minds. That is what is being done. The time for mediation has not arrived. When it does, I have no doubt that the Treaty of Sevres will have to be reconsidered. You cannot expect a country which has waged a successful war to be satisfied with the same terms as a country which is prepared to forego its full claim, in order to avert the terrors and risks of war. May I say this, as one who has never in the least concealed the fact that at any rate he was not hostile to the Greeks? I sincerely trust that the Greeks will not make the mistake which Bulgaria made in 1913, when, after a series of very brilliant victories which dazzled her people, and blinded the vision of some of her statesmen, she insisted upon exaggerated terms, and put forward extravagant claims which raised for her a host of enemies, antagonised old friends, and ended in her downfall.

As a sincere friend of Greece, I trust that Greek statesmanship will not repeat that error. If it does, I am certain it will end in disaster to Greece. Moderation in victory is not less important than victory itself. I go beyond that. I think moderation in victory is more important to a nation even than victory itself, for there are so many tragedies written across the page of history which have arisen from victory turned to a bad use, a victory immoderately used, and it would have been better for those nations had they never won their victory. I, therefore, almost entreat Greek statesmanship not to put its claims too high, but to show its quality by displaying a temperance in victory which will win a greater respect for them and for their country, greater renown for their native land as well as for themselves, and greater security for the country itself, than the most dazzling victory which they could win.

Russian Famine

I come now to another and a much more distressing topic, and that is the topic of the Russian famine, which engaged the attention of the Supreme Council. Here I fear that we are faced with the most terrible visitation that has afflicted Europe or the world for centuries. It is difficult to get news, but I am sorry to say that such news as we have received points to a most appalling catastrophe. We have just received a telegram from our trade representative in Moscow, and I will summarise the information which is sent us. He says that in the districts bordering the Volga, which are normally the richest in Russia, the crops have completely failed. The crops in the neighbouring districts are barely sufficient to satisfy local needs The estimated population affected is continually increasing, as reports from various areas come in. His calculation is that 35,000,000 people will require relief.

From Mr. Hodgson, our Commissioner in Moscow. He has one sentence which gives a terrible picture of what is happening. He says that "the inhabitants of the famine- stricken districts, seeing there is no possibility of help reaching them in time to prevent starvation, are moving in large masses in different directions. They are travelling to Turkestan, to Siberia, to Poland. Many are travelling through the Steppes. There are no food supplies and no shelter, and they appear to be doomed to annihilation. Of these migratory bodies, only some 20 per cent. are able-bodied, and more than 30 per cent. are children. The condition of these last is piteous. Many of them have been abandoned to their fate by their parents. The people are eating grass, rats, roots and other rubbish."

That is the account which he gives, in an official despatch which we have only just received, of the appalling condition of things in this district. It is almost impossible to know what to do or what to say—it has come so suddenly. As far as Europe is concerned, it has come without warning. We made various suggestions as to relief for immediate suffering, and as to the provision of seed for next year. A great appeal is made for food supplies, particularly milk and flour, and waterproof material for temporary shelters at concentration points, and there is an urgent demand for medical supplies. Of course, there is no doubt at all that this will end in one of the greatest scourges that ever afflicted Europe—pestilence on a gigantic scale. Of doctors there are not enough, as a very considerable number were killed in the War.

This is so appalling a disaster that it ought to sweep every prejudice out of one's mind, and appeal only to one emotion—that of pity and human sympathy. I wish to put another point. This area of the Volga is the area that put up the last fight against the Bolshevists. Even those who hate the Bolshevists, in fact, the more they hate the Bolshevists the more they think that this is due entirely to the Bolshevist regime. [HON. MEMBERS: "It is!"] I am trying to avoid controversial matter—those who believe that it is due entirely to Bolshevism—although that cannot be, because it is the drought that is responsible—even those who believe it is due entirely to Bolshevism, must admit that this area, at any rate, is not responsible for Bolshevism. They fought Bolshevism right to the end, and were only overcome by force of arms. In fact, the first fight with the Bolshevists was in this area. Whatever the view of hon. Members may be, I ask the House to remember that this area is beyond controversy in that respect, and that it demands the smypathy of men, whether they be pro-Bolshevists or anti-Bolshevists, or whether they are men who are indifferent to both. We therefore were confronted with the problem of what was best to be done. We decided to create an International Commission—not an inter-Allied Commission, but an International Commission—to study the possibilities of rendering immediate aid to the starving population in Russia. On that Commission we have appointed three men. I will give the reason why they were appointed later on, and why each of them was chosen, because it is an indication of the lines upon which we thought assistance should be given One is my hon. Friend the Secretary to the Overseas Trade Department (Sir P. Lloyd-Greame); another is Sir John Hewett, a man of great Indian experience; and the other is Mr. Wardrop, who was Consul in Moscow for some years, and has a thorough acquaintance with Russia.

I shall now tell the House something of what is being done. There have been suggestions of relief from organisations in America, from the Red Cross, and from private benefactors, all valuable, especially those from bodies who propose-to send doctors, and medical supplies, and any bodies who can help to prevent the children from dying. But I am sorry to say this is such a gigantic catastrophe that it has to be dealt with upon a much bigger scale, and it was the feeling in Paris that there must be a great international effort. There are two problems with which we have to deal. The first is the problem of transport. There is hardly any transport. I think there are a few hundred locomotives and a few hundred wagons, more or less broken down, but as a matter of fact the whole economic organisation of Russia—I do not want to say anything more about it—is in an appalling state. This is not the time to dwell on that side of the question. We have got to deal now with a great problem of humanity Transport has broken down, and in the parts of Russia where the peasants have corn, they decline to part with it, except in return for commodities. The currency of the country has no value whatever in the country, and, therefore, they decline to part with the corn unless you give them such articles as boots or clothes or agricultural implements, or something else that they need. That is the second point.

The third point is the organisation of the famine area. With regard to this third question, it is very difficult to know how to deal with the situation. No one in Paris wanted to introduce the political element. Whether you are for trade with the Bolsheviks, or against trade with the Bolsheviks, whether you are for recognising or against recognising them, there was not a word said in Paris which would justify the belief that anyone was anxious to make use of this famine for political purposes—not a word from any quarter. There was only the one sole desire—how to save these millions of people and, of course, how to prevent the spread of the epidemic which must inevitably follow.

I have indicated that although the action of the Red Cross and of Mr. Hoover's Committee and of private benefactors are very valuable as an immediate relief, they must be manifestly inadequate to deal with 35,000,000 people. You have got first of all to induce the people who have corn in the neighbouring areas to bring it in. You cannot do that unless you organise some means by which the peasants can be induced to part with the corn. You instantly come up against the question of how you are to get the peasants to do so. It will only be met by an organised exchange of commodities. That is one of the reasons why my hon. Friend the Secretary to the Overseas Trade Department has been put on this Committee—in order to see whether anything can be organised on that basis.

There is also the question of organising in the famine areas. There is no country in the world that has had the same experience as the British Empire in organising relief for great famines due to drought. Our Indian officials have coped more efficiently and successfully with famine problems than any officials in the world. There have been great areas of Asia swept by famine, and there has been practically no effort to deal with them on a great and an adequate scale. But in India famines affecting 50,000,000 and 60,000,000 of people have been successfully dealt with, and with hardly any loss of life, at any rate, with no loss of life comparable to the great affliction that had visited the country. We decided to put Sir John Hewett, who has had very considerable experience of famine, as one of our representatives on the Commission with a view to bringing his experience to bear. Lord Curzon, who was Viceroy of India when one of the greatest famines fell upon that country, and when 60,000,000 people were affected, said that one of the most important things in dealing with famine was to prevent these great movements of the population. If you have great masses swinging about from one area to another, it is quite impossible to cope with them. You have to get an organisation which will keep them in their areas, and deal with them there. That is one of the elementary principles in regard to which those accustomed to deal with Indian famine will be able to assist whoever is organising relief in connection with this terrible visitation in that part of the world.

We can only do this by complete co-operation with the Government machinery in that area, and we must have the most definite guarantee that whatever relief be given shall go to the people who are suffering. Those who organise the relief must themselves see to that. Nobody wants to govern the Volga. We do not want to set up committees in the Volga to govern; but, at any rate, the people who have the experience and the only people who have the resources must, to that extent, have the control of the administration of the relief which they dispense.

There is another point I should like to make. The best service which the Soviet Government can render at the present moment would be by an act that would, at any rate, partially restore confidence in countries outside Russia. They know perfectly well that we can only save these areas by organising supplies which are on the spot. You cannot bring supplies from outside. There are just one or two inlets,—Novorossisk and Petrograd—through which to send stores. [An HON. MEMBER: "The Red Army will get them!"] I have already dealt with that. We shall see to that There must be guarantees that they do not go to anybody except those in distress. That is essential, and I hope no word will be said which will make it difficult for people to give of their uttermost to help distress. That is not the point which I wish to make now. What I desire to emphasise is that the supplies must come from areas which surround the stricken districts. You can only do that by inducing the peasants to part with their corn, and you can only induce them to part with their corn if you give them supplies. Those supplies have to come from outside. You cannot get the supplies from outside, unless the Soviet government will recognise their obligations—the obligations which have been incurred for supplies already sent to Russia. I am not putting that because I want to take advantage of the famine, in order to get recognition for debts that have been incurred. Merely to use the famine for that purpose would be diabolical. I put this because I know it is the shortest road to relief. I do not say for a moment that the Soviet government should recognise these governments, because that is a question which can be settled between the countries. But it should be remembered that people have given of their earnings, that there are thousands and tens of thousands and hundreds of thousands in France who have given their last penny to help Russia in one crisis or another in past years, and there are many in this country. There are many in this country who sent their goods there, who invested their capital there, and who have given their everything.

If the Soviet Government want to create confidence, if they want to get the trading community to come in to assist them at this juncture, they must say they will recognise all these obligations. I hope it will be believed that I do not want to take advantage of this dire calamity for the purpose of obtaining acceptance of this principle; but I know this is the best way of dealing with the matter. I have gone into it very carefully, and have found that this stood in the way. They themselves admit that you must get the peasants to part with their corn, and they admit that there is only one way of doing so, that is by giving goods. I say there is only one way of getting the goods there, and that is by restoring that confidence among the trading community that will make the trading community feel that they can send their goods there without any danger of their obligations being confiscated in the future. I put that very sincerely to the House, and very earnestly, with the desire to relieve this terrible famine.

5.0 P.M.

I have only to say one word in conclusion. If anyone wanted to know what war meant, just one week of the Supreme Council last week would have been sufficient. My colleagues and I went from a country with a debt of £8,000,000,000, with a heavy burden of pensions for the crippled and the widows and children of the fallen, from a country with millions of unemployed, because our world-customers were impoverished by the War. We went to a country whose richest province is still devastated, who is unable to make her Budget meet in spite of all the thrift and industry of her population, because of the obligations she has assumed in the war.

We met representatives from Italy who were in the same position. We had to discuss what was to be done with distress in Austria, and we were confronted with the problem of 35,000,000 people dying from starvation in Russia, with the gaunt spectre of pestilence in that land, and with the danger that it would sweep oevr a Continent too exhausted by war to resist it. The Disarmament Conference at Washington comes not an hour too soon, and even that will not suffice, unless there be a constant vigilance of federated nations throughout the world—whatever form that federation may take—to make sure that ambition and folly and greed shall never again plunge the world into this quagmire of wretchedness.

The Prime Minister has covered, naturally and necessarily, a very wide field, and most appropriately, I think, just before the House is prorogued, he has given a comprehensive survey of the actual situation. I am not going to follow him through the whole of that diverse and interesting area, but I am glad to say, and I say it at the outset with full conviction, that I think on the whole it is the most satisfactory statement we have received on the international situation since the time of the Armistice. There are one or two points with which I will deal at the outset and on which I am sure there can be no controversy at all. The first is that which formed the subject of the last part of the Prime Minister's speech, namely, the appalling catastrophe with which Russia is threatened. I agree with him that it is not relevant or appropriate—indeed, it is in the highest degree inexpedient—to discuss at this moment how far this impending calamity is due to, or has been created or aggravated by, the follies and crimes of the Russian Government. Take it as a whole, it must be regarded as one of those terrible, unforeseeable visitations of nature which no human foresight could anticipate or the most skilfully devised statesmanship could altogether avert. There it is, a scourge which, so far as these populations are concerned, is only comparable to those which we read of in old days as inflicted by conquerors like Tamerlane and Genghis Khan. Happily, it has moved the compassion, the humane sentiment, of the whole civilised world, and I am very glad to hear, and we are all very glad to hear, from what the Prime Minister has told us, that measures of a practical kind are contemplated.

If I may summarise my own view of the matter, I would say that, first of all, we are in complete agreement with him that the best contribution—apart, of course, from generosity in the expenditure of money and the purchase of necessaries—which the British Empire can render in this almost unparelleled situation is to utilise to the fullest extent the unique famine experience of our own great Anglo-Indian Administration. There is no other country in the world that has had to face this problem in so acute a form and upon so large a scale as we have in India. I have seen a succession of these Indian famines, sometimes on an appalling scale, even greater, so far as the number of persons affected is concerned, than what now threatens Russia, and nothing has been more remarkable, even in the splendid annals of Anglo-Indian Administration, than the growing efficiency and skill with which they have dealt successfully with these visitations. I am delighted to hear that Sir John Prescott Hewett has been selected by the Government for this purpose. There is no man in our Anglo- Indian Administration with greater experience and knowledge of these matters, or who could bring them to a larger accumulated store of practical suggestions.

The other thing in relation to that matter which I should like to add—and here again I am only emphasising what the Prime Minister has said—is that you must depend in the long run, in the situation thus produced, on the co-operation of the local authorities in Russia It may be a very difficult thing to secure. The barriers are too obvious to need description, and indeed it is not desirable to describe them, but, whatever motives or incentives can be brought to bear on those who are responsible for the conduct of affairs in Russia, to make it easy for the Western world to convey, as they are only too willing to convey, everything that they can in the way of commodities and medical stores to the distressed areas, in the interests of their own country and of their own future, I hope they will do all they possibly can in this direction.

I pass from that to another topic on which I was very glad to hear, and I think the people of this country will be very glad to hear, the declarations made by the Prime Minister to-day. I mean the sanctions which have been imposed upon Germany in order to secure the discharge of her obligations in the matter of reparation and disarmament and in other respects. I think the Supreme Council have, if somewhat tardily, pursued in their latest determination a wise policy. The so-called economic sanction, that is to say, the maintenance of a customs barrier, I understand, will disappear at once. Is it at the end of this month?

I rather think it is after the 31st August but, in any case, we may take it that it is coming to an end. The military occupation of some parts of German territory, which formed a part of the sanction, or body of sanctions, is not for the moment, or not so quickly, to be got rid of, but I hope that that also, within a very reasonable distance of time, will follow the economic sanction. We recognise, as we all must, and as it is only fair and just that we should, the peculiarly acute susceptibilities of the French in regard to their future security. After all, they are close to the menace, or the contingently menacing force, which stares them in the face, from whose terribly destructive operations they are even now, after two years of reparation and reconstruction, suffering in the most heartrending way, and I think it is a very foolish and shortsighted policy not to try and enter sympathetically into the views of the French in this matter. But I venture to say—and here again I am re-echoing the spirit of what the Prime Minister has said here to-day—that there are two great securities. The first is the living and abiding memory—and nowhere can it be more deeply engraved than in the minds of the population of Germany at this moment—of the unspeakably disastrous consequences of an aggressive war. The other is the hope, I will go further and say the prospect, the assured expectation, that the nations of the civilised world are going collectively, without exception, without hesitation and with unanimity to enter upon for themselves and, so far as they can, by argument and example to impose upon others, a policy of disamament, which means not merely the reduction in number and in offensive and aggressive character of such machinery of destruction as still remains, but the prevention of the recurrence of anything in the nature of competition in armaments between the various nations of the world. These are the real securities which France—and every other country for that matter—has against dangers which it is easy for us at a distance to minimise, but which, even at this day, press strongly on their imagination.

There are only two other topics referred to by the Prime Minister on which I should like to say a word, and I will take them in the reverse order to that which he adopted, and say a word first about the position of things in Asia Minor and the relations between Greece and Turkey. Of all the loose ends and ragged edges left by the War, this, I think, is perhaps the most difficult to handle and to patch up again.

The Treaty of Sevres is there, an unratified, unrecognised, and inchoate international instrument, which, I think it is safe to predict, will never become, in its present form, part of the public law of Europe. I make that prediction with some considerable confidence, and I rather think, from something that fell from the Prime Minister, that he is of the same opinion, but it must be admitted that the Treaty of Sevres is a dead letter. The question is, What are you to do? Are you to coerce them? I entirely agree that military and naval coercion is out of the question. I am certain there is nobody in this House of Commons—and I expect the same would be the case if we could transport ourselves in imagination over to the French Chamber—who would give his sanction to a proposal of the Government to expend £100 of the taxpayers' money to coerce either Greece or Turkey to put them in a reasonable frame of mind. I would vote against any proposal of the kind, and I do not believe there is a Member of this House who would not follow me into the Lobby. On the other hand, if you are not going to apply coercion, there is but one practical alternative. Of course, I agree it is no use inviting the Powers to an academic interview with the League of Nations. They have not reached the stage by which that method or machinery is appropriate to the settlement of their dispute. I wish they had. In my view—I agree it is a painful alternative—the only thing is to leave them to fight it out between themselves. That we should give either one or the other anything in the nature of overt or covert support—or any of the other great Powers represented on the Supreme Council or the League—is, I think, an altogether inconceivable hypothesis. It is horrible and disappointing that this ancient cockpit of secular feuds should, after three years of so-called peace, and after the hideous experience the world has had of war, once again be the scene of an internecine conflict between warring ambitions and covetousness, for that is what it is.

I am an old friend of Greece, like the Prime Minister, and I have often championed her cause in her darkest days. But do not let there be any disguise. This is a conflict which is not going on for world purposes, or anything in the nature of great ideals. It is a blot, and I would almost say a scandal to the world, in any sense in which we use that term in describing the community of nations, that this should be going on day after day, and week after week, in a constant, a growing and an aimless expenditure of treasure and of life. As for the competition in atrocities, the less said about that the better. It seems to me a melancholy and an impotent conclusion that the great Powers of Europe should be unable to do anything practical to stop this endless effusion of blood and temper. For the moment, I confess I have nothing more to suggest than that we should be rigidly neutral, and that, so far as we can, we should restrain and contract the area of conflict within the narrowest possible geographical limits.

It is a more agreeable thing to contemplate what has happened, and what is likely to happen, a little nearer home, in Upper Silesia. I am afraid I cannot assent to the view put forward by the Prime Minister that what is now being done, and wisely being done, in the invocation as arbiter of the League of Nations, might not have been done sooner with better effect. I see no reason myself why the Allied Powers, who alone have the force, should not have done what they now contemplate, that is, keep the peace between the Germans on the one side and the Poles on the other while the matter was being calmly, impartially, and dispassionately discussed by the machinery of the League. But what I want to make clear is this. In the first place—and I shall be corrected if I am not accurately interpreting the decision to which the Supreme Council has come—I understand the whole matter is to be referred to the League without prejudice, and without any of the parties concerned being compromised by proposals in one direction or another, which, for the sake of peace, they might have made in days gone by. The next point I would like to notice is this. Are what I may call the litigant Powers—the Germans upon the one side and the Poles upon the other—to have the opportunity of presenting their case, with any relevant evidence which they may have to produce in support of it, to the tribunal, whatever that tribunal may be?

It is really their case, and not ours. We were simply sitting in judgment upon it, and it is, therefore, really for them to present the case, and not us.

It is not an un-important point, but it is very un-desirable that we should go into the merits of the case here.

May I ask whether the Germans will be placed exactly in the same position, notwithstanding the fact that they are not members of the League of Nations, as are the Poles?

I do not see how that could affect it. In a dispute between two parties, one of whom is a member of the League of Nations and the other is not, it is quite clear that the one which is could not be an arbiter in the dispute. I do not think the hon. Member need be alarmed about that. But there has been, of course, an enormous amount pf expert investigation, and, I gather, considerable conflict of expert view, and I think it is most desirable that the League of Nation—I do not know what machinery the League of Nations can set in motion—should have a free, impartial, and first-hand investigation of the whole dispute. There is not only a reasonable but an excellent chance of their decision being accepted, as I understand it will be, by the great Powers. The right hon. Gentleman told us that they have bound themselves in advance to accept the decision, whatever it may be, to which the League of Nations arrives, and not only them. The same obligation should be laid on what I may call the interested litigant parties themselves. That, I think, is a great step in advance. It is the most gratifying and hopeful indication that we have yet seen of a real, whole-hearted desire and determination on the part of the Allied Powers to give to the League of Nations the kind of authority, and to enable them to discharge the sort of functions, which it was the object of the Covenant to entrust to them.

I will summarise the conclusions to which, it seems to me, we can reasonably come in this general survey of the situation, by saying, first, that it is of the utmost importance to contract, curtail and bring as soon as possible to an end, these provisional and artificial sanctions as between the Allied Powers on the one side and Germany on the other. As soon as you are satisfied, and have every reason to be satisfied, that Germany has an honest intention to fulfil her obligations, the sooner you ought to remove causes of irritation and obstruction to free intercourse. The next conclusion of importance is that there is a prospect now that the Supreme Council, which, after all, is an instrument of war, or at least for winding up or liquidating the results of war, will see the time has come when it may more and more devolve its functions upon the League of Nations, which was created really for that purpose. The third and last conclusion, and what is most important of all, is that the great step which has been taken by the President of the United States of America and his country—not a member of the League of Nations—a step in strictest consonance and harmony with the ideals of the League, and the spirit with which it was created, inviting a general conference on disarmament for the first time, gives us a real hope, a solid and an assured hope, that the world is going to escape from the old devastating regime of international animosity and competitive forces, and enter upon a regime of mutual international adjustment.

The House will, I hope, forgive a feeling of pride on the part of the only old Indian Civil Servant in the House at hearing the Prime Minister refer in terms of praise to my brother officer, Sir Harold Stuart, who is gathering laurels in Central Europe, and to hear that my brother officer, Sir John Hewett, is to take an important part in the relief of famine in Russia. To nobody could this be more gratifying than to one who, while serving in India, qualified in Russia as a Russian Interpreter. But there was one omission in the Prime Minister's absorbingly interesting speech. He did not refer to the method in which relief was to be provided. He said transport had broken down in Russia. I do not think Russian transport at its best could have done much to cope with such a famine. The problem in India, where, as he said, famine has been treated with such extraordinary success that a famine does not mean death or sickness from starvation, is chiefly a transport problem. There is plenty of grain in India in the height of the greatest famine to feed all the multitudinous inhabitants of that country. The sole problem is to get it from the places where it is to the places where it is not, and in India, owing to the development by the British Government of transport, you can now get the grain from the places where it exists to the places where it does not exist, and you may say that the British Government has abolished famine in India. When you see famine reported in India, it only means that the price of grain has reached such a point that the famine code comes into operation, and relief is given which prevents people who have not got the money to buy grain from suffering from famine. Now, in Russia the problem is a totally different one. The people there cannot be treated in the same way.

The Prime Minister said nothing about finance. In India, for a few pennies, a family can be fed. Yet in dealing with the prevention of famine in India millions have been spent. But in Russia whence are these millions to come? I have a question on the Paper, which now I can take off, to ask whether only such relief was contemplated as was voluntary. I take it that at the present moment, or indeed at any time, to play any important part in feeding tens of millions of famine-stricken subjects in Russia is wholly out of the power of the already heavily taxed British subjects; yet I do not know myself what is intended quite from the speech of the Prime Minister. I did not gather that more was intended at the expense of the taxpayer than the despatch of doctors and medicines. I think a good many doctors might very well be spared from the Ministry of Health who would be able to perform more useful functions in Russia at the present time than here. I confess that for that reason I am in much doubt as to what exactly is to be the function of the distinguished and able gentlemen who are going to provide the means of preventing the movements of the population, but they have a terrible problem there, because there will not be the means of preventing the movement of the population, such as habitually exists in India in times of scarcity, where you have the army, the police, and a naturally law-abiding population, who have learned from experience that the British Government and its officers would strain every nerve, and have already successfully dealt with distress, and will prevent them suffering from famine.

In Russia the framework of society was broken down when Czarism—as it is called here—but which was really quite a benevolent form of Government, if it had only been known—fell. When the Russian autocracy was broken up the framework of Russia fell to pieces. I do not know how Sir John Hewitt and his able brother members of this Committee are going to be able to prevent the movements of population which there will not be troops or police to restrain. They will also have to deal with the naturally impulsive Slav temperament, which once its routine and its ordinary restraints are relaxed is apt—certain indeed—to overflow every possible restraint, which it did when the Russian Revolution broke out with consequences so disastrous to the world. These are points, and especially the point in regard to the financing of this relief, to which I desire to refer. If relief funds are opened, as they will be, and have been in the past, the people of this country, even in their distress, will contribute largely towards the relief of far greater distress in Russia, but I cannot think it will be possible for them to do anything which will really to any large extent mitigate this terriffic calamity; and I should like to know to what extent, if at all, relief at the expense of the taxpayer is contemplated. I for one—and I am sure my feelings towards Russia must be at least as friendly as those of any other Members of the House—there are many reasons why they should be more so—cannot understand how the British taxpayer can at present be called upon to find funds to deal even with a calamity of this intensity in a foreign country.

Anxious as I should be to enlarge upon this subject, I will not say more, but will come for the moment to the question of the Treaty of Sèvres, that brittle and broken instrument. The Prime Minister and the right hon. Gentleman the Member for Paisley (Mr. Asquith) both in the course of their speeches said: Why should we dissemble the fact we were actuated—this is practically what they said—by our traditional friendliness towards Greece, which—these are my words now—which has no doubt been characteristic of British statesmen, Gladstone and others, and up to the present. Well, it is not for me to express any dissatisfaction, or indeed to criticise the remarks of such distinguished Parliamentarians as the Prime Minister and the right hon. Member for Paisley.

But when they say they are actuated by friendly feelings towards Greece, I am sorry that it was not said as an aside at least, that they are equally actuated by friendly feelings towards the Mohammedans. For myself, as a small Parliamentarian following the example set me by great Parliamentarians, I say outright I am actuated by infinitely more friendly feelings towards the Mohammedans than towards the Greeks. I do not attach much importance to the pictures we receive of persons mutilated by Greek soldiers. I have received some of these to-day. I have enough experience to know how easily such things are faked, and how these photographs on either side are of no account whatever, and how difficult it is to get at the facts as to whether atrocities have really been committed. This, however, I will say, as an earnest inquirer, that there are as many atrocities committed against the Mohammedans as by them, and now we have the right hon. Gentleman telling us that the Government—rightly, as I think—have arrived at the conclusion that it must leave the Greeks and Turks to fight this quarrel out themselves. Seeing the Government have arrived at that conclusion—and I almost ventured to interrupt the Prime Minister this afternoon—I hope it will be understood—for I think that it was merely a passing oversight that he did not say it—that the friendly feelings to which he has confessed towards the Greeks in no way impaired those friendly feelings he possesses towards the Turkish Mohammedans, who always speak with the utmost respect and reverence and awe of the sacred figures of our own religion, and profess themselves a faith which is that of the greatest number of the King's subjects—except only the Hindus—and by a very large number of the inhabitants, perhaps nearly a quarter, of our Indian Empire.

For my part, I own I cannot see how the Turks can be expected to sit down contentedly when their greatest port, Smyrna, the greatest really of Turkish Asiatic ports, has been placed in possession of the Greeks, and with the Greeks in the saddle in Thrace. I hope when the Treaty of Sèvres is reconstructed something will be done to redress the balance in this respect, and that we shall not be led astray by that false sentiment which attributes all the virtues in the world to the Armenians, because, while they have, unfortunately, a greater habit of being subject to atrocities than anybody else, they, at any rate, understand better than anybody else how to make their sufferings known and to magnify them to the exclusion of the sufferings of others at their hands, which are probably not inferior to their own. In the course of my lifetime the whole of the Armenian population has been many times exterminated, and yet it is now very nearly as numerous as it was when these exterminations commenced. I therefore hope and pray that the House will remember what is our position towards the Mohammedans, and not be led astray by false sentiment or by the intensely able propaganda, the pecuniarily well-supported propaganda, which carries all before it in this country, and naturally excites the bitter resentment of our Mohammedan friends in and out of India.

There is one other subject upon which I wish to touch. The League of Nations has been mentioned several times. The right hon. Gentleman the Member for Paisley was glad indeed that in its early childhood it had not been given a difficult problem like that of the Greeks and Turks to settle. I also am very glad. My hon. Friend the Under-Secretary of State for Foreign Affairs has reproved me several times for my attitude towards the League of Nations and I have submitted to his rebukes with becoming resignation, and now I wish to say that I do feel that the League is coming into its own. Now that President Harding, that great man, has really set about doing that which the League was created to do, namely, to limit armament and to promote peace—President Harding and not, as it happens, President Wilson!—something is now by way of being accomplished. I hope and believe that the League of Nations will be amalgamated or assimilated, and that this new body, or Conference, will breathe its spirit into the League of Nations, and that it will now become, as the reference made to it must make it tend to become, what it was really intended to be, and what until lately it showed such small signs of ever becoming. I think the day of the League has dawned. For my part, I am exceedingly glad of it, and if I have ever criticised it for its devotion to trivial and trumpery subjects, phosphates and such like things, I, at any rate, am as anxious as anyone in this House, or anyone who goes about the country preaching about the League, to see it really become a great force for the promotion of peace and the reduction of armaments, which owing to this action of President Harding, and of our own Prime Minister, it is likely to become.

My last word is only to express my satisfaction at the resolution at which the Imperial Conference in London has arrived as regards the status of Indians within the Empire. It is an all-important subject which has been treated with the utmost ability by that distinguished Madras statesman, Mr. Srinivasa Sastri, whose Privy Counsellorship I noted with the utmost satisfaction, which satisfaction, I am sure, will be universal in India. The resolution at which the Conference arrived will be profoundly acceptable in India. It is in itself quite satisfactory, and if no effort is made to upset it, I believe Indians will show that restraint and good sense, which would induce them not to press immediately for its too literal performance, regardless of other conditions, which have grown up in Kenya, for instance, and perhaps other countries. If they show now some restraint and a spirit of accommodation to Europeans, and the Europeans show the same spirit of accommodation to them, which on all occasions I own they have not done, I believe this extremely difficult problem will be solved. If it does not reach a satisfactory solution now, it is likely to prove one of the most serious things with which our Empire will have to deal. I believe, however, that there is a fair prospect that being in good hands it will be settled, which will be most, satisfactory, to myself as a friend of the Indians, and I earnestly hope in a manner not harmful to the European settlers in Africa, towards whom also I have naturally and properly the friendliest of feelings.

I desire in a very few words to submit to the House the views of our party on the very important statement of the Prime Minister. One thing that has emerged from this Debate is that the House, for the first time, finds the hon. Member for East Nottingham (Sir J. D. Rees) a supporter of the League of Nations. If he had not been so emphatic this afternoon, I am sure the House and the country would have misunderstood his position. Some of us have had very grave doubts as to where the hon. Member stood with regard to the League of Nations. We have always assumed, judging from his attitude and questions, that he looked upon it as a sort of necessary nuisance. Having praised it to the extent he has this afternoon, I am sure he will be the first to feel proud that at last we look upon him as a supporter of this very useful institution. I am not sure whether his blessings on the Armenians were not equal to his professed blessings on the League of Nations. The Prime Minister rightly says that he has availed himself of the first opportunity to acquaint the House with the Paris decisions. I believe that difficult as has been foreign policy, and difficult as some of the questions the Prime Minister has been compelled to deal with during the past two years have been, there is no question ever raised upon which he has spoken with so united a people behind him as he did on the question of Upper Silesia. I believe that, regardless of party, and regardless of any political consideration, the attitude which the Prime Minister adopted in connection with that matter expressed the overwhelming feeling of the great mass of the men and women in this country, not because we are anti-French, not because we do not appreciate French feeling, not because we do not understand the sufferings and horrors that France has experienced, but because we believe that that view of a crushed and down-trodden Germany is a view contrary not only to the best interests of our own country, but contrary to the best interests of the future peace of the world.

I beieve that whilst the Prime Minister took a very strong and definite attitude that he not only has the overwhelming sense of the British people behind him, but simultaneously I believe in referring the matter to the League of Nations, at last we are in a position to say that that League has been given a fair opportunity to perform some useful work. Up to now the League has been treated somewhat contemptuously, and it is no good disguising that fact. It is impossible to assume that the League of Nations could function with the Supreme Council continuously in existence. The Supreme Council was undoubtedly continuing the work that ought to have been the work of the League of Nations, and I am delighted to know that this matter has been at last referred to them, thus giving them some real and useful work to do, but what is more important is the binding agreement and understanding that all nations are prepared to accept the verdict, whatever it may be.

I associate myself with the plea that the Prime Minister made with regard to Russia, but I am sorry that he made any reference whatever to Russia undertaking any obligation with regard to her debts, not because I do not think that Russia ought to admit her debts, because I have frequently in this House stated that I believe that one of the first things the Bolshevik Government ought to have done was to recognise Russia's obligations, but I regret that that matter should now enter in any way into the grave human appeal that is involved in the problem of the famine in Russia at this moment. I believe that we must dissociate any political opinions, and we must clearly keep in mind that this is a great human cry which must appeal to all human beings. I believe it is only in that spirit that we ought to approach this question. I believe it is in that spirit that the great mass of the British people will approach it. I agree that so far as relief is concerned it must not be used for political purposes on our side, and equally it must not be used for those purposes on the other side. In short, I believe the appeal is to humanity over and above any political consideration.

The only other point I desire to deal with is that I hope the Government will clearly understand the views of the people of this country with regard to sanctions. We have heard the admission that sanctions are bound to fail. We never hesitated to point out that economically they were unsound, and that the application of them would prove disastrous. The Prime Minister has admitted to-day that those sanctions have cost more than the benefit we are getting out of them. There is a moral side as distinct from a financial side to that question. Everyone who has discussed the matter with people who have been out in Russia are unanimous in declaring that this is a standing danger and menace, and they are of opinion that not only the economic, but the military sanctions should be immediately removed.

Speaking generally, I think we have heard this afternoon the most satisfactory statement with regard to foreign policy that we have heard for a long time, and most significant of all was the closing sentence of the Prime Minister when he asked that the lessons of war should not be lost on the people. It is useless to talk about Germany disarming without we ourselves and France and other countries are prepared to set an example. We are already clearly understanding that the price of victory is a dear price even to the victors, and I believe that the sentiments of the Prime Minister in that direction are the general sentiments of the country. For all these reasons we associate ourselves whole-heartedly with the human appeal that the Prime Minister made, an appeal that we hope will be reciprocated elsewhere.

I rise as one whose lot it was to sign the Peace Treaty in Paris, and just in two or three sentences I wish to express my sincere gratification at the speech of the Prime Minister to-day, especially in regard to Silesia. When the Prime Minister was talking this afternoon the scene came back to me of a discussion by the British Empire Delegation of the conditions which had been tentatively agreed should be pressed upon the Germans. I remember especially one Sunday evening when we met in the rooms of the Lord Privy Seal, and what struck me this afternoon looking back upon that event was the part played in it by the late General Botha. We met on the 19th anniversary of the Treaty signed in South Africa following that war. Bather singularly Lord Milner happened to be sitting next to General Botha, and when this matter of Silesia was under consideration General Botha touched Lord Milner on the shoulder and reminded him of a meeting of a similar character 19 years before on that very day.

He reminded Lord Milner that upon that occasion he had been pleading for moderate terms to be imposed upon, as he was then, the enemy. On this occasion, on the 19th anniversary of that great event, he was in Paris pleading for like generosity to animate those who were meeting as victors over Germany. Therefore it was with special satisfaction that my mind travelled back to that time, because I was one of those who, with General Botha and others, induced the Prime Minister to try and induce those he was meeting daily to reconsider this question of Silesia amongst other questions. As the right hon. Gentleman rightly said, the settlement which was then reached was that the fate of Silesia was to be determined by the free vote, so far as it could be ascertained, of the people living there, modified only by geographical and economic considerations. I think it is a matter of some little pride that our Prime Minister, not only now, but last May, has stood for square to all the opposition from Frenchmen or anybody else for the strict maintenance of the agreement which was then arrived at. I congratulate the Prime Minister, the House and the country upon having taken, through the right hon. Gentleman, a part which is entirely honourable to ourselves, and, as my right hon. Friend the Member for Derby (Mr. Thomas) has just said, the Prime Minister has behind him in this action the full concurrence of the great mass of the people of this country in standing strictly for the maintenance of the terms of that Treaty.

6.0 P.M.

This is not only a question of the maintenance of treaties, but it is necessary for the good of the world that nothing should now be done that would leave a sore in Europe which might lead to further war. We all appreciate the position of the French who, twice in living memory, have had to go through the experiences of aggression by the Germans with all that means; but after all, after making every allowance for that, it would be suicide to repeat the error of 1871 because we should be fostering another sore that might lead to another war. The greatest chance of safety for France lies not in essaying the impossible task of crushing Germany, but in making a world friendship. I know that here I come in contact with my hon. Friend the Member for East Nottingham (Sir J. D. Rees), but I believe that the greatest possible chance of a world friendship lies in a better international organisation of all nations through a League of Nations. At all events, safety does not lie in trying to crush a people whose numbers are rapidly increasing by a country whose population is gradually diminishing in numbers. I believe France has a population of 39 millions while Germany has about 66 millions, or at all events it is a great many more than France, and the probability is that before many years are over the population of Germany will be double that of France. It seems to me pretty obvious, if you have a country like Germany full of a virile people twice as numerous as another people close to their own borders, the other people must look to something else besides trying to crush out those who are double in number for their own safety. Therefore I am glad that the Prime Minister has stood strictly for the maintenance of the Treaty. This also carries with it these other considerations, that Treaty having been altered largely as a result of the pleading of that great man, General Botha, who, having been down himself at one time, pleaded two years ago for those who were down at that time. I heard the right hon. Gentleman for Derby (Mr. Thomas) say something about a famine in Russia. I agree with him that we ought to have in our minds above all, and even to the exclusion of all else, the succouring of people in such dire need. But I do not follow him in his observations with regard to the bringing in of the need for the Russians admitting themselves under an obligation to pay their debts. It is true the Prime Minister said that that was a secondary matter, but, although secondary, it still seems to me of importance. If you are going to get the people of this and other countries to send stuff to Russia, you have to appeal to their pockets. That may be regrettable, but it is a fact. And over and above that fact, ought we not to have some little regard for our own people who have been ruined by the Russians not paying their debts?

I myself know a lady who at this moment day by day is selling her furniture because all her money is in Russia, and, although she may have a barrowful of Russian paper, yet in order to live this poor person is actually selling the furniture in her own home. I had that lady in my mind and I thought to myself there might be thousands of other people in like predicament. Therefore it seemed to me that the Prime Minister, in speaking up for the Russians admitting their obligations in regard to these debts, and therefore leading to goods being willingly sent to Russia, was also speaking out for something which incidentally is going to benefit our own people. Unlike my right hon. Friend, therefore, I was rather glad that the Prime Minister put that as one consideration—he did not put it is the first consideration, which was going to block or ought to block the flow of sympathy and help to the Russian people, but he put it as something which might help to produce that flow. I was glad he brought it in as one of the considerations to be borne in mind. That is all I have to say. I had not intended to speak, but having regard to the fact that I heard the Prime Minister's speech throughout, and that it was my lot to be one of the signatories to the Peace Treaty at Paris, I thought I might just say in a few words how glad I Was that the Prime Minister has so loyally, not only to-day, but in times gone by, and manfully, stood for the implementation of the bargain made in Paris two years ago. Incidentally in speaking up for the implementation of that bargain, he has done great service to the people of those countries and he has also done something of which we have great reason to be proud, because we, through him, have taken such a large part in it.

The Prime Minister covered a very large field and before I realised that we had started this Debate we had got to the Near East. Consequently I am inclined to thank the last two speakers for bringing us back to the subject of Germany herself. I feel with regard to this country we cannot go on much longer looking upon her, as we do to-day, as an enemy. She is a late enemy and must take her place soon as one of the normal countries of Europe. I should have liked to have heard from the Prime Minister what is the general outlook of the Government towards her. To-day we have here a feeling of bitter resentment towards her due to the conduct of individuals and largely stimulated by the Press towards the latter part of the War. Apart from the psychological aspect there is an economic point of view to be considered. On this question the whole country is a little fogged. There are two schools of thought—one which objects to the import of goods from Germany, the second which insists on indemnities. The two schools of thought are a pure contradiction, and I want from the Government some lead as to which they are going to choose. We cannot have both. There are some people who seem to think that England alone of all the States of Europe can have a revival on her own. It is impossible to look upon a revival of trade and prosperity in Eng- land without giving the Central States of Europe a chance of reviving as well We are really a sort of United States of Europe, and the prosperity of one is wrapped up with the prosperity of the other.

I hope that some of the English firms will realise soon that Germany to-day really should be co-operated with rather than looked upon as an antagonist. We must look upon Germany as a sort of junior partner, and go step by step in re-establishing that commercial prosperity for which we have fought. There are 300,000,000 of white people in Europe who are not consuming and not producing, and one of these days there is going to come an enormous demand from Russia for all the commodities of which she has been starved for so many years. We must know that Germany is the only country that can deal with the distribution of goods to Russia, and the sooner we are partners, the sooner we realise that we must live not in antagonism to, but in co-operation with Germany, the better it will be for all of us. There is also the political side of the question. Some of us, even if we do not agree with French policy, feel that if we oppose France we are playing the German game. I do not agree with that at all. It is really not to the advantage of Germany that the Entente should break up. Germany wants all the problems of Central Europe settled one way or the other. We have to remember, relative to Germany, that we have taken her military power away from her, and although it is difficult to get it into our heads that she is no longer a powerful military nation, still it is nothing but the truth. Germany to-day is a weakling, and having taken away her power the responsibility for the treatment meted out to her rests upon us. That is why I congratulate the Prime Minister on his attitude with regard to Silesia. In a way, I do not regret it, but still I do not like the idea that our very strong and moral support on this question of Silesia has been shifted on to a ground where we cannot have a word to say on the matter at all.

The internal Germany of to-day we have to divide into two separate Germanics. There are the old Imperialists, the Junker class, which still exists, although it hides itself. It is there in Germany waiting for an opportunity to come back. That is the Germany that causes all the trouble in Europe. It is the Germany which we detest and loathe. But there is a second Germany, the German Republic of the present day. When that came in the whole of Germany looked forward to it as the advent of a new Germany. That Government has had to carry on its shoulders all the sins of the old Imperialist Germany in the past, and that is a very heavy load indeed to carry. No wonder, then, it is an unpopular Government for the moment, because in every way that we can we go for Germany for the sins of her past Government, and we go against the present Government. Most assuredly we are pushing Germany by our own actions back to its old military caste. The policy of France was summed up about a year ago very tritely by M. Clemenceau, who said, "There are 20,000,000 of Germans too many." Ever since then France has adopted a policy of pinpricks and annoyance towards that country—a policy which I would describe as the uttermost farthing policy. You cannot expect 20,000,000 of Germans to die because M. Clemenceau wants it. They are not going to starve by themselves, and if you are not going to treat them in a way which will enable them to recover, you are not merely going to have crockery broken in Europe, you will have a bull in a china shop. In that way we are playing with fire, and through discontent and hopelessness generated by our acts against the Republican Government we are throwing that country back to the military caste. If we do that, if Germany is shifted from a republic back to the Junker class, then largely we shall find that, though we won the War, it was entirely in vain.

The right hon. Member for Derby (Mr. Thomas) blamed the Prime Minister for having alluded to the question of Russian indebtedness and Russian obligations. I think that, far from deserving blame the Prime Minister deserves credit for having faced the facts. He was bound to point out that it was lack of confidence more than anything else which is causing the Russian tragedy to-day. The famine of which we have heard such harrowing accounts is a symptom of a disease which cannot be dealt with by a mere policy of relief. Drought may have had much to do with it, but much more responsible is the Bolshevik policy which has destroyed the railways and has stopped that production upon which even a simple system of bartering should be founded. I am sure that the House and the country will respond very readily to the Prime Minister's eloquent appeal in the name of humanity, but I must say that since the Trade Agreement with Russia we have had very little evidence that the Russian Government is in a frame of mind which will make this problem of relief an easy one. We must make quite sure that no sympathy which we may feel shall lead us to neglect guarantees that the relief which we send is properly applied. We have seen lately a statement on the authority of M. Litvinoff that there is not even a famine in Russia, and until we can be sure, we must go very carefully in this matter, and make certain that trains and rolling stock and material which we send in response to this call of the starving millions in Russia will not afterwards be used to rivet Bolshevism even more tightly upon that unfortunate and suffering people.

We must recognise that in other respects the statement of the Prime Minister this afternoon was more or less satisfactory. He has undoubtedly worked in the last 10 days very effectually for peace and to avoid the creation of new sores likely to lead to war. I think it was a wise decision to refer the Silesian frontier question to the League of Nations. Hasty meetings of preoccupied Prime Ministers, interrupted by junketings and cinematographs and entertainments, are not a suitable method for deciding delicate and very complex questions of detail. From that point of view, if the League of Nations is going to work through an expert committee on the matter, I think we are likely to get a far more reasonable settlement than we could have hoped for from the hasty consideration of the Supreme Council. One must also recognise, that in the present state of French opinion, great restraint has been shown by the French Government, and very considerable sacrifice in agreeing to refer this matter to the League of Nations. I believe that that sacrifice has been faced with the great object of maintaining the Entente. They recognise what one sometimes is apt to forget when one reads their newspapers, that the Entente is the corner-stone of European peace; and I only hope that this signal lesson which the French have now given us of their feelings on this subject will be met by a corresponding effort on our side.

If the Silesian danger is in a fair way of being settled, the next most important problem outstanding is that of the Near East, and on that score I must say that the statement of the Prime Minister this afternoon seemed to me to be most un-satisfactory. His attitude was that of the old Turks after the Revolution towards the dogs of Constantinople. Those unfortunate animals were all shipped off to an island—it was not Prinkipo, but an island near by—and left there to destroy each other. That practically is the policy which the Prime Minister tells us this afternoon he considers most suitable for application to Anatolia. It is a most cynical policy, and I think it is a disastrous policy in the interests of reconstruction throughout the world. The Prime Minister tells us that the Turks have refused mediation. I do not believe he is accurate. I think what happened was this: At the end of the London Conference last March, Bekir Samy Bey went back to Angora to submit the proposals in modification of the Sevres Treaty. They were also submitted to the Greek Government. The Greek Government did not even condescend to answer; their answer was a fresh attack on the Turks, and that attack took place long before the expiration of the period which was the least necessary for Angora to be reached and consulted in the matter. The next attempt took place in Paris, where Lord Curzon in June brought forward a proposal for mediation between the Greeks and the Turks. That proposal was only made to the Greeks. As they contemptuously turned it down, it was never sent on to Turkey at all.

I am afraid that the ineffectiveness of British policy as regards the Near East is largely due to the unwillingness of the Prime Minister to follow any line which might conceivably hurt the Greeks. As, however, our partners in the Allies have repented of the folly of the Sevres Treaty, and have refused to support us any further in our pro-Greek policy, we have inevitably fallen into a condition of disastrous drift. I can conceive that there is something to be said for strongly backing up one side or the other—for instance, Greece. I think there is a great deal more to be said for imposing a settlement. But there is nothing whatever to be said for going on with present cross purposes between the Allies, which have led to half measures and to our looking on helplessly while the Near East sinks deeper and deeper into misery and ruin. It was Allied, and principally British, valour and sacrifice which beat the Turks. The Greeks had nothing whatever to do with it; and yet they are being allowed to mould a settlement on their own interests only. The position seems to me like one in which two grown men have had a hard fight, and one having been knocked out, the other, while he is still unconscious, calls in a spiteful little boy and lets him sit on him and keep on bumping his head against the ground.

That is not the way to get peace. The Greeks are not strong enough permanently to hold down the Turks; they are greatly outnumbered by the Turkish race. If we are going to sanction Greek imperialism, Anatolia will become as great a nuisance to its inhabitants and to the world at large as Macedonia used to be before the Balkan wars. One has only to read the Macedonia blue books to realise what Greek methods always have been and still remain. While events were working up to the Balkan wars, we had it on the strong authority of Lord Grey of Falloden how the provocation caused by Greek bands, recruited in Greece and led by Greek officers, was at the root of the whole mischief, and defeated all the efforts of the Powers to bring about improvement. With a land frontier between Greece and Turkey, or between Greece and Macedonia, it was impossible to stop these incursions, but it does seem to be madness to introduce the same tragedy into Asia Minor which has hitherto been protected therefrom by its sea frontier. It is an extraordinary mistake, which began with the policy of allowing Greece, at the end of the War, when everyone was hoping for settlement, suddenly to invade Smyrna and make a new war. The only explanation, I am afraid, is that our foreign affairs are run, not by the Foreign Office, but by the Prime Minister personally. I suspect that experts in a position to give him advice founded on experience and knowledge are very rarely consulted. Anyhow, I cannot find any expert, whether traveller or soldier, who approves of our present and recent policy in the Near East.

This is not to say that the Prime Minister has no counsellors. I believe that in this matter the voice behind the throne, or, I should say, behind the presidential chair, is that of Sir Basil Zaharoff. He is, no doubt, a very able financier. I believe he has international interests in the munition industry. Outside political circles, his chief fame is that he either does or did control the armament industries in four or five countries. But even more important than his financial power is the fact that, although he is British enough to be a Grand Cross of the Bath, and a Grand Cross of the British Empire, he remains primarily, I believe, a Greek. If we are to be ruled in foreign affairs, not by the Foreign Office, not by experts, but by a President, or, anyhow, by a presidential system, we can at least ask that the voices which he hears should be British voices, and the interests those of his own country, or at least of the Entente. Not only as against Turkey, but as against Bulgaria and Albania, I believe our policy has been to load the dice in favour of Greece. Take the case of Albania. Her all too narrow frontiers were fixed in 1913. They were cut down as the result of sordid intrigues between various European interests. They were so narrow, severing the plains on which the flocks had to pasture in winter from the mountains which they only occupied in summer—they were so scantily drawn, that it was a question whether Albania could carry on a separate existence. Nevertheless, our representative, according to the statement in the Press a fortnight ago, caused a deadlock in the Commission set up by the Ambassadors' Conference to decide the Albanian frontiers, by demanding that these narrow frontiers should be cut down still further, and that a large part of Southern Albania, with a great preponderance of Albanian population, should be handed over to Greece. It is the same with regard to Thrace. In order to allow Greek guns to command Constantinople from the Chatalga lines, Bulgaria has been shut off from all access to the Aegean, and innumerable seeds of future trouble have been sown in the Balkans by putting other populations of other races under Greek control. The Allied neutrality in the present Græco-Turkish struggle is a mere pretence, because we are allowing Greece to use the Dardanelles, the Marmora, the Bosphorus, and the Black Sea for the transport of her troops and the basing of her supply system. We are doing all this for a nation which has continually flouted the Allies, and which is in an open attitude of recalcitrancy.

The refusal of Greece to accept mediation seems to me to remove all claim on the part of that country to be considered as one of the Allies. She is waging war directly against the authority of the Supreme Council. The Prime Minister spoke some very eloquent words this afternoon as to the necessity for "moderation in victory." Judging by their record in the past, that is about the last policy which we can expect to find accepted by the Greeks. I do not think we shall ever see a reasonable settlement in the Near East brought forward by Greece. We, on the other hand, cannot afford the risk of a huge conflagration by these everlasting wars going on in the Near East, and we must, therefore, in our own interests and in the interests of those immediately concerned in these devastated regions, impose a settlement I raised this matter on the Appropriation Bill at the end of last Session, and I remember that the Prime Minister at the time said that we who spoke on the subject were not definite enough as to what we wanted. Of course, it is absurd for private Members to bring forward detailed schemes, but I think the essentials of reasonable settlement are fairly clear. We have to go back on the cardinal mistakes of the Sèvres Treaty. We have to leave Smyrna under Turkish suzerainty, so as to secure complete freedom of trade for Turkey. Anyone who has been in Anatolia must know that for years to come it will be the only possible outlet for the reviving trade of that country.

In return for such a concession to Turkey we must insist on satisfactory guarantees on the lines of those contained in Part 4 of the same Treaty to which I believe the Turks make very little objection for the protection of racial minorities. We must rectify the Greek frontier in Thrace and set it back on racial grounds and give reasonable security to Constantinople against sudden attack. Bulgaria must have that outlet to the Aegean which was promised to her in rather vague terms. The Prime Minister no doubt is of opinion that we have no means of enforcing this. He said, "What are we to do except to let them fight it out?" I think he very much underrates the power of the Allies. If the Allies are united there will be very little difficulty in bringing these two nations to reason. It is now time to cease making suggestions and to begin to give orders. The right hon. Gentleman (Mr. Asquith) said it was unthinkable that we should use force. I agree, if he means by force a military expedition, that is out of the question, but we have great economic resources which we could bring into play and in case of either party proving recalcitrant we could bring Greece to reason by the application of a blockade and we could coerce Turkey by the certainty that she would lose Constantinople. I believe the British support of Greek claims entered into hastily, and short-sightedly, nearly three years ago, has been the chief obstacle to a settlement in the Near East, and I would even at this time, while fully recognising the difficulty it always must be to own that we are wrong and go back on our policy, ask the Prime Minister in the interest of peace and of the Entente to modify our policy so that the Near East may share in that peace which has been enjoyed by Western Europe now for nearly three years.

The speech of the Prime Minister was, from my individual point of view, one of the most satisfactory I have heard in the House, and if I call attention to one or two outstanding facts in connection with French policy I do it in no spirit of antagonism to the French but rather from the point of view of a sincere lover of France, its language, and its people, but as one who believes that occasionally a nation, after suffering for 40 or 50 years under what is considered an intolerable wrong, may, when the pressure is removed, swing to the other extreme and become as great a danger as the nation was that originally inflicted the wrong upon her. It is scarcely to be doubted that had the plebiscite gone in favour of Poland the whole of Upper Silesia would have been handed to Poland. If that be the case, and I believe it to be the case, there ought to be no difficulty about the plebiscite now sending the whole of Upper Silesia to Germany. That I do not think would be an ideal settlement of the quarrel. An ideal settlement of the quarrel, I believe, lies along the lines laid down by the Prime Minister, that the wishes of the people and the economic circumstances of the country ought to be the determining factors as to where that territory ought to go. But what has been the condition in Upper Silesia during the time these matters have been under negotiation? There was the Korfanty episode. I find it difficult to draw any other conclusion than that Korfanty was deliberately encouraged by the French military powers in Upper Silesia. With every intention in the world to try to be just to the French, I cannot draw any other conclusion. Then may we take the attitude of France in Germany itself. With a cynicism that is absolutely inexcusable, coloured troops were sent into the German towns which were in the occupation of the French. Surely the last thing to be done to a white and civilised nation is to send coloured troops to act as guards. There was no need for it.

I said Germany and I repeat Germany. If the hon. Member wishes to consider the Germans uncivilised he has a perfect right to do it. I on the contrary have a right to assume that the Germans are a civilised people. They may have been a mistaken people, they may have been a brutal people, but the legislation we have been passing to prevent the products of their civilisation coming into this country is the clearest possible proof of their civilisation. These things were done by France. Not satisfied with the Saar, it was quite evident that the French policy was aiming at the occupation of the Ruhr. The mineral resources of the Saar, the desire to get to the Ruhr, the retaking and the just retaking of the mineral resources of Alsace Lorraine, and then her ally Poland sweeping the mineral resources at the other side, would have put France, practically controlling Poland as she does, in possession of nearly the whole of the mineral resources of Europe, and we should have had what caused the Great War—two military powers, possessing armies between them infinitely more powerful than the armies of any other country in Europe with the exception of Russia, in absolute command of the mineral resources and as truly military in every respect as Germany was at the height of her power. One has to say these things because if they be true, and I hold that they are, they are a menace to the future peace of Europe and the time was bound to arrive when the Prime Minister, gently but firmly, had to state that that policy was not satisfactory to the British nation. I consider it was proved during the War, certainly it was proved during the election, that what the people of this country want beyond all other things is justice to all peoples, including the Germans, and peace in Europe, so that I am deeply glad that the Prime Minister succeeded in getting the question of Upper Silesia referred to a tribunal which I believe is the only competent tribunal which can deal with the matter, and the verdict of which will be accepted in good faith by all the nations of the world. It does two things. It takes out of the arena of arms the future of Upper Silesia and it gives an opportunity of proving what can be done by a League of Nations. Because I believe it to be just in principle and promising for the future, I am glad the Prime Minister has succeeded in getting the result from his labours that he has got with regard to the Upper Silesian question.

With regard to the sanctions in Germany, I think you cannot allow enmity to rule for ever, and the attempt to dominate Germany for generations to come can only end in another war. That there is a change in Germany is undoubted. No man who knew the German cities before the War, and who visits them now, can fail to note the difference. There is an opportunity now, by firm but just treatment of a conquered nation, finally to get that spirit between the nations of Europe which will inevitably lead to future peace, as unjust treatment will inevitably lead to future war. I am hopeful that the result of diplomatic League of Nations actions during the next few years will be really to bring about a state of peace, at any rate so far as Western Europe is concerned. France may be afraid of a repetition of 1871. Some of her people may be justifiably afraid, but I am afraid the sipirt of Imperialism in France is stronger than the fear of Germany. Germany is without a fleet and, so far as we know, almost without the armaments which would justify her in entering upon anything like a war of the scale which would be necessary if she went to war with France. France is well armed, with a great army. On the East lies Poland with the second largest army in Western Europe. What has France to fear from Germany? In my opinion, while there may be a large number of the French people who have a real fear of Germany, the policy underlying France's action now is rather in the direction of seizing mines, of seizing rich lands, and with an ally controlling the principal mineral resources of Europe she is not dominated by the fear of her late opponent.

Now, may I say a word with regard to Russia? I cordially appreciate the sentiments of the Prime Minister. When men, women, and children are starving it is not the time to argue as to their sins. The first thing to do is to help, and we can argue afterwards. The picture painted of 35,000,000 people absolutely starving, with its attendant dangers to us, is an appalling one to look at. I know from information I have had the magnificent fight that the Russian medical men have put up against pestilence and famine. Like every other body of medical men in the world, the Russian doctors have done what humanity expects of doctors. The profession stands so high in popular estimation that one instinctively looks upon a doctor as a being who will sacrifice himself for the good of his fellows. Russian doctors have been struggling, without antiseptics, without even instruments, to keep back the flood of epidemic and pestilence. I am glad that European medical men outside Russia will have an opportunity, under the scheme that is now to be carried out, of going to the help of their overworked colleagues in Russia and helping them not only with their personal professional skill, but with those articles needed in hospitals and in sick rooms which the Russians themselves do not possess.

I do not need to tell the House what I think about Bolshevism. I consider it absolutely wrong in theory and mis- chievous in practice, but when people are starving, the first thing to do is to help them, to give them food, and to argue and fight, if need be, afterwards. From the merely utilitarian point of view, from the calculating point of view, the best thing to be done with the Russians is to prove to them that the people outside Russia have hearts and sympathies, and will help. Prove that to the Russians, and the doctrine that people outside Russia are villains will fall to the ground at once. I was very glad to hear the Prime Minister's statement with regard to Russia.

With regard to the Near East, I share almost in their entirety the views of the hon. and gallant Member (Lieut.-Colonel Guinness) who has just spoken. The Prime Minister made speeches during the War. He said that we were not fighting to take Thrace, nor the renowned lands of Asia Minor from Turkey.

It is the same thing. The Treaty of Sèvres did not quite carry out that good intention. Rightly or wrongly, there is a great volume of opinion, both in India and the Far East, that the Turks were very badly treated by the Treaty of Sèvres, that they did not get justice, and that feeling of discontent is aggravated by the fact that the people who have most cause for discontent, and are most discontented, are the 75,000,000 of Mussulmen in India, who look upon the Treaty of Sèvres, whether we like it or not, as a breach of promises made during the War. They look upon the Sultan of Turkey as their Caliph, one part of their religion being that to be their Caliph he must be a temporal sovereign, with full temporal authority. They see the Sultan's palace under the guns of the British, and will not recognise the Sultan as a free agent, though undoubtedly the Government of Angora is a Government which is recognised by the Turks as a Government which can speak for the Turkish people. I wish that in his references the Prime Minister would treat the Turks a little more generously and would make his references to the Greeks a little less warm.

I know that King Tino is now in command in Greece, and as an Englishman, and possibly a Welshman, loves a King, that may be a reason for the affection. It seems to me that there is a real source of danger in the attitude that we adopt towards the Greeks. The Turks look upon themselves as having been very unjustly treated, and people of the same religion throughout the world have the same feelings. You have in Egypt, in India, and right through the Near, the Middle and the Far East, the Mussulman feeling that the Turk, his religious brother, is suffering an injustice. If that be continued, one does not know where religious dissatisfaction may end. It can mean, and probably will mean, a great complication of the already enormous difficulties in India. My appeal to the Prime Minister is, that he should try to look upon the Turkish problem in the same way as he looked upon the Silesian problem, not as a matter to be fought out by force of arms, but as a matter to be arbitrated upon. Sections 10, 11 and 12 of the Covenant of the League of Nations will give him ample ground for taking action of that kind. If his policy can be devoted towards producing peace between Greece and Turkey, it would alleviate that feeling in the Far East, it would make for peace, not only in Europe, but in India, and then we might get what the Prime Minister, alone of all Members of the House, can paint in words, the real peace that comes from understanding between nations.

If the Prime Minister wishes to establish peace in Asia Minor and in India, and to get the permanent good will of our Mohammedan fellow-subjects, and all living under the sway of our King, there is only one principle to follow, and that is not to consider whether concession is to be made to this religion or that religion, to this race or that race, but to follow the dictates of justice and humanity. I believe that is what he seeks to follow, and I have no sympathy with the criticisms, almost amounting to attacks, that have been made upon him and his policy this afternoon with regard to Asia Minor and the Græco-Turkish War. The history of this matter is not altogether to be forgotten. We have stood the friend of Turkey for many generations, and, in particular, ever since the Crimea, we have given the Turks chances again and again. We have tried to help them, perhaps going much further than we ought to have done. What has been our reward? In the great War they quite gratuitously, and simply for their own selfish purposes, attacked us, when they thought we were in a desperate position. Now we are told that they were so badly treated in the Treaty of Sèvres. I am not going into the details of that Treaty, but I think they were extraordinarily well treated under that Treaty, considering how they have treated us. If they had had the sense of humility to accept that Treaty, they would have been in an infinitely better position now than they are, or are likely to be.

The hon. and gallant Member for Bury St. Edmunds (Lieut.-Colonel Guinness) said it was not correct to say that the Turks had refused the terms offered to them by our Government on the settlement of Asia Minor affairs. They refused the Treaty of Sèvres: then the Angora Government refused the modification of that Treaty which was offered to them in the Congress held in London in the spring. In subsequent negotiations which were coming about, and which seemed to offer some promise of a settlement, they seized the opportunity of trying to humiliate us by saying that we had sought and obtained terms from them, and had asked them to negotiate with us. Thereby, they showed the cloven hoof. They showed what they intended to do, and they made it inevitable that those negotiations should come to an end. They have thrown away and thwarted every attempt that has been made to help Turkey and to help the Turkish Government for 70 years and more. Compare the record of the Greeks in the same time. Greece began 100 years ago from the depths of degradation and slavery, due to centuries of enthralment by the Turks, and, in spite of all their faults and errors, they have made steady progress upwards. Nobody can say the same of the Turkish Government. Every race that has been liberated from Turkish thraldom has made immense steps upwards, and meanwhile their former masters have been sinking lower and lower in inefficiency, corruption, and degradation. Now we have the astounding statement made, and the cry is again raised, "Oh, the poor Turks! We must do something for the Turks!" I do not hear the same cry coming from many people with regard to any of the races that have suffered at the hands of the Turks.

The Prime Minister is quite right in saying that it is impossible for us to interfere in the Græco-Turkish War. We have been told this afternoon that we should impose peace. How are we going to impose peace? I do not believe it can be done by economic of diplomatic means, and I do not advocate the sending of a great military expedition to impose peace upon the combatants. There was a time when that might have been done. I have criticised the Prime Minister's policy, and I am sure he will not bear me any grudge on that account, because I believed that there was a time when a general appeasement might have been brought about by a different policy in the East. That time has gone. It is clear that if we are going to impose peace upon the combatants, and to bring about a solution of the difficulties, it will become our immediate duty, if we intervene—we cannot intervene and simply stop at a certain point and say, "We will wash our hands of the whole matter "—to bring about a general settlement which will lead us from land to land and involve upon us the very greatest sacrifices. The time when we could have intervened at comparatively small sacrifice has gone, and I do not see how we can possibly intervene now with any sacrifice which this country can be fairly called upon to make. There is nothing for it, bad as it is, but to say that we cannot now bring about a general appeasement, and that we must, as the Prime Minister said, await the issue of the terrible struggle between the Greeks and the Turks.

7.0 P.M.

This war must end in one of two things: either a Greek victory or a Turkish victory, and I very earnestly hope that it will be a Greek victory rather than a Turkish victory. If it is a Greek victory there will be some hope for civilisation in that part of the world in the future. It may not come quickly, but the Greek is a progressive and improving man, and the Greek Government is an improving Government. The Turkish Government is going down, from bad to worse, as it always has done. Therefore, I hope that our Government will not intervene to give any advantage to the Turks over the Greeks. We want justice for all the races there. I have long desired that there might be a general appeasement, not only with the Turks and their subject races, but with the Russians as well. That has not proved possible hitherto, but the time will come when there will be an end of fighting between the Greeks and the Turks. Then, I hope, our Government will be able to intervene with some effect, and may bring about some peace and good government there. I hope they will not forget, and I believe they will not forget, when that time comes, that there are other subject races also in Turkey, and that we have the same duty to them, especially to those of them who were our Allies in the Great War. I trust we may be able to do something for their independence and something to give them guidance and help.

I repudiate entirely what has been said as to hostility towards Mohammedanism. There is no hostility on the part of those who advocate the claims of the subject races of Turkey toward Mohammedanism or toward any religion whatever. The Armenians, for whom I can speak more particularly, desired very strongly right up to the beginning of the Great War to remain part of the Turkish Empire and subjects of the Turks. The reason was that they saw, at that time, that it was impossible for them to be independent, and they knew that if they did not continue to be subject to the Turks they would become subject to the Russians. They felt that under Russia they would lose their nationality and become Russianised, whereas under Turkey there was always the chance of retaining their nationality. Therefore, up to the War, they always desired to remain subjects of the Turks if only they could get decent government. They worked, and I, on their behalf, worked for them in this country for years, to get the Turks to introduce reasonable reforms, whereby it would be possible for the Armenians to remain their contented and loyal subjects. Does that look like anti-Mohammedanism or fanaticism? I repudiate entirely the idea that those who in this country speak for the subject races in Turkey are animated by any fanaticism against Mohammedans.

Did not the hon. Member say that the Mohammedans were always becoming more degraded, whereas the Greeks were always rising. Has Greece risen since the days of Demosthenes, Pericles and Sophocles?

I did not say anything of the sort with regard to Mohammedans going down. I spoke of the Turks, and not the Mohammedans. The Turks are not all the Mohammedans, by any means; they are one peculiar race, and their record is well known. There have been times when the struggle between Christian and Mohammedan races has been a struggle between Christian barbarism and Mohammedan civilisation; anyone who knows the history of mediæval Europe knows that; but I was speaking of the Turkish Government and not in any sense of the Mohammedan people of the world as a whole. I came into the House a little time ago, and heard the hon. Member for East Nottingham (Sir J. D. Rees) indulging in his favourite pastime of kicking the broken and wounded dog. He was once more, for the hundredth time, telling us with what scorn and hatred he regarded the Armenians. He practically denied the fact of the massacres of the Armenians. He said they were always being massacred, but were always as numerous as before. He ought to know that, whereas there were 4,000,000 at the outbreak of the Great War, they have been reduced to about 3,000,000 now, and that the Turkish Government, by deliberate massacre and organisation all over the country, on a fixed and settled plan, accounted for some 700,000 of them within a short time. That was not in fair war, but by the massacre of old men, women, and children, and all others they could get their hands on.

The Government is perfectly right in its policy of not interfering in this war between the Greeks and the Turks. I sincerely hope, when the time comes and this war has worn itself out, that the Government will be able to use its influence, not to the advantage merely of any one race or religion, but for the establishment of justice between races and religions and of that peace and harmony which we hope to see and which we must some day see, throughout the Middle East and Asia Minor.

I am sure the Prime Minister must have been delighted with the way in which speaker after speaker, from both sides of the House, has told him that he has made the most satisfactory pronouncement about foreign affairs that this Parliament has ever heard. I, too, would congratulate him—I will not say on the return to sanity, for I believe he has always been perfectly sane and sound in his views on foreign affairs—but on the way in which he has finally persuaded his colleagues, both here and in Paris, to take up the sound and sane line of appeasement after the Great War. I am perfectly delighted with the way in which he has held up, as I believe, the honour and good name of England over the Silesian affair. I look at this question, not from the point of view of how it affects Germany or how it affects France. I believe our chief value as an ally of any other nation in the world rests on our good name, and on the fact that in all circumstances, sooner or later, we take up the position of giving a fair deal; that we believe in doing the right thing, and in fair play; and that we deal out that fair play, even to our enemies. That is really an enormous asset. If it can only be realised that the English Government, and the enormous power wielded by the British Empire, will be used for fair play in all these international questions which come up, we shall really have done far more to establish the good name of the British Commonwealth and the welfare of the whole of the world than by a successful war, or by the backing of a successful ally.

That is all I wish to say about Silesia. The Prime Minister, however, in his admirable speech, left one or two blanks, as, for instance, when he was dealing with the question of sanctions. I was extremely glad to hear quite clearly from him that the economic sanctions were to be abandoned. From my readings in the papers I had gathered that it was postponed until the next meeting of the Supreme Council, but he stated quite clearly that the economic sanctions were to be abandoned at once, and that only the military sanctions were to be considered at the next meeting of the Supreme Council. That is all right. The economic sanctions were disapproved of by everybody on these benches when they were imposed, and we are delighted that they are taken off. I should like to press the right hon. Gentleman's representative on the Front Bench to give us some light upon a suggestion we have seen from Paris, that, although the economic sanctions might be abandoned, there was to be a Committee of Control appointed to see that the German Government did not prevent the importation into Germany of articles of luxury which the French might want to sell to the Germans. One of the great difficulties in Germany has been that they have been importing luxuries, and thereby depreciating the mark, and the Government in Germany have been doing their best to stop what they call "the hole in the West." If the abolition of the economic sanctions is to be accompanied by the insistence that all champagne and silks and gloves that France may want to send to Germany must be admitted info Germany as freely as articles of necessity, then I think a great deal of the good to be expected from the abolition of these economic sanctions will be lost.

I was very glad to hear from the Prime Minister that there is a chance of the Allies reducing the Army of Occupation. It seems to me that the principal advantage of that Army of Occupation has been that the English troops in Cologne have got to appreciate more than they did before the advantages of German civilisation. That is not a reason, however, why we should permanently inflict upon the Germans directly, and indirectly upon ourselves, the great cost of this military occupation. It is not merely the military occupation which is costing these large sums at the present time; it is the extraordinary number of Commissions of Control, controlling everything, which wander about Germany as inspectors, having a very good time in the meanwhile. I should like to see all these Commissions of Control reduced very largely in the near future, and I am very glad to hear from the Prime Minister that there is a chance of something being done in that direction.

The part of his speech with which I disagreed, and disagreed in company with, I think, every horn. Member who has addressed the House except the hon. Member for Consett (Mr. A. Williams), is the part relating to the War at present going on between Turkey and Greece. I ask the House to remember, in face of the denunciations, which reminded one of the prophets of the Old Testament, which came from the hon. Member for Consett, that the Musselmans or the Turks may be incarnate fiends in the bulk, but that individually they are men and women much like ourselves, and that at the present time these unfortunate men and women are being chased from their farms and driven wholesale across the desert in the direction of Angora. This is a war taking place in a purely Turkish country, and the poor unfortunate Turkish peasants are being harried just as the Armenians were in the old days—

They are living quite peaceably in the districts occupied by the Greeks.

That always happens where armies are moving in this way and the peaceful peasants are being massacred. It is not a war in the territory of a mixed population, but this is Turkish territory. It is because the Greeks are now carrying on a war of conquest over territories to which they have no possible claim that I urge the Prime Minister and the Government to cease this attitude of non-intervention, and to use that weapon, which they have perfectly well at their disposal, to call the Greeks to a halt and to say that this last child of the great War is to be put an end to. Hon. Members have said that we are not in a position to intervene. I would point out that Greece owes us many millions of money, and that every day this war goes on it makes the prospect of her paying interest on that money, even, let alone paying the capital back, more and more remote. Greece is a debtor who is injuring her securities at the present moment. If reasonable terms were come to, and if we could get Greece to drop this campaign into the Turkish country, it might be possible that part of that debt might be written off if we could only achieve peace. It is not merely a question of the Turkish peasants being butchered. It is a question for us to consider as members of the British Commonwealth. Hon. Member after hon. Member has shown that the British Commonwealth, and the future of the British Commonwealth, particularly in India, depends upon our giving fair play to the Mussulmen throughout the world, realising that they are our fellow citizens. There would be no one action of the British Government which would do more to settle the terrible difficulties of Government in India at present than insistance by the British Government that this war in Anatolia should cease, and that peace should be declared with the Mussulman population on honourable terms with good security for the subject races in Turkey.

I would have them remain subject on European guarantees. I pass now to the question of Russia. The Prime Minister's speech was admirable there too, though there were certain points that he slurred over. He showed clearly that the best efforts of voluntary assistance, whether through a Joint Committee, the International Red Cross, the Friends' War League Society or the Save the Children Fund, could only be a drop in the bucket towards the enormous needs of the starving population in South East Russia. Voluntary assistance must be supplemented, and I think that he is right in saying that the best way in which assistance can be given to Russia is by sending to Russia clothes, boots and agricultural machinery which will tempt the peasants in the north and centre of Russia, who have grain, to part with that grain in exchange for these goods that they want. I am glad that he has appointed the Minister for Overseas Trade to take charge of this matter of Russian relief, but nothing can be done unless there is a cash credit given to Russia in order to facilitate its relief.

The whole question of trade with Russia depends upon trade credits at the present time. I do not believe that private trade with Russia is possible at present. I think that anything done must be done in the way of international trade by the Governments concerned, and that it is the Government here which will have to buy the stuff to send Russia, load the ships, transport it to Russia and send over the railways these goods that are required. Nothing but a Government can do it, and to my mind it is only the Government that can accept security. The only security that the Soviet Government have to offer for the £30,000,000, or it may be £100,000,000 that they will want, is the security of their forests and minerals. That is not a security that an ordinary trader can accept. It is a security that only a Government can accept, and if they really mean, as I believe this House does mean, to do their best to assist the Russian people in this frightful crisis, they will have to do it through the Government. The Prime Minister will have to see that credits are given and that money is advanced by us on securities offered by the Russian Government.

Obviously, if the Powers of Europe are to assist the Russian people, the relations between the people who will put up the money for their assistance and the present Soviet Government will be very ticklish. You have there a Government which is not recognised, a Government, therefore, that is all the more touchy because it is not recognised, a Government that will require to be dealt with very tactfully, particularly because it is unrecognised, and also because it is made up of class-conscious Socialists. We all know how touchy the class-conscious Socialist is. For all these reasons, I do regret that there has as yet been no opportunity of securing the advice and assistance of some emissaries of the Soviet Government as to the best way in which the proposed relief can be used to the best assistance of the Russian people. I think myself that there is bound to be a certain amount of control exercised by the people who are dealing with this famine and who are doing their best to prevent it spreading. There will have to be a certain amount of control over the railways and over the depots. We have got to make a campaign in South Russia to land the goods at Novorossisk, to extend the goods along the rails gradually into the famine area, and to press forward exactly as you would have to press forward supplies of an army when advancing.

For all that, as we have seen in France in the Great War, you will have to have a certain amount of control. I beg those people who are organising this famine relief to see that in their relations with the Soviet officials they will work as much as possible in co-operation with them to get the best assistance, because I am certain, unless you get the present Government of Russia, however much you may dislike it, to co-operate with those people in Western Europe who are seeking to reduce this terrible disaster in Russia, many more millions of people will perish than ought to do if this co-operation is possible. It seems to me that there is one step further which the Prime Minister can make in the direction of mitigating the terrible faminè, and that is a step which I have no doubt he will take sooner or later. He knows well that it would be best to take it now. The Prime Minister's heart is always in the right place, but the surroundings are apt to make his movements difficult, but sooner or later it is inevitable that the Prime Minister shall recognise the Russian Government, and that recognition will be of the greatest assistance in combating this terrible famine. I would beg him to take the firm stand that he took over Silesia again over this Russian question, and to show the world that we not only stand for fair play, but that we even forget that we are shaking hands with murder in the interests of humanity.

National Expenditure (Business Committee)

The Debate on questions outside the range of our own affairs is of absorbing interest, but I propose to bring the Debate back to a matter of urgency and vital importance—the financial aspect of the affairs of this country. No matter what may be our financial commitments in the end somebody has got to pay. Therefore it is clear that the method of payment, and whether there is capacity to pay, are matters of as much importance as the foreign policy which the country for the time being pursues. We have had many interesting discussions from time to time upon the question as to how the House of Commons proposes to control expenditure. The first point which I wish to emphasise is that the primary responsibility of this House, which has distinguished it in the course of centuries from the functions of the other House, is the control of expenditure. Therefore any proposals of the Government, however attractive they may seem, which minimise that control and derogate from its authority are a matter of great, and, indeed, vital importance to this House.

Where are the Members of the Government? There is nobody here to answer.

One of the reasons of the lack of control of expenditure, and the consequent loss to the people of this country, has undoubtedly been the fact that an Opposition on the old lines has not been available for criticism of finance and general control of the Treasury and the Executive which it is so desirable to obtain, as a result of an election which has taken place, and one of the consequences which have flown from it is that the steady day-to-day assistance of a highly trained, highly organised Opposition has been lacking. Those of us who sit on this side of the House have done our best, and it has had some effect, but I do not for one moment seek to minimise the fact that it has not been anything like as effective as it might have been, and I should like to pay a tribute to those Members of the House, quite a number of them, who have in face of great difficulties played an important part in our effort to criticise and control expenditure. The particular point to which I wish to draw attention at present is the appointment of the so-called Business Committee. The proposal has been described as a bright idea and a happy thought, but certainly it came with the shock of surprise to the House as a whole. We ought not really to have been surprised, for the reason that since 1919 there has been a rake's progress of promises and undertakings on the part of His Majesty's Government on this most important question. I remember on the 7th August, 1919, the then Chancellor of the Exchequer making a statement which was sufficiently alarming. He said: Government had a triumphant majority in the Lobbies, and everybody went away thinking, "Well, everything is for the best in this somewhat doubtful financial world."

One of the things by means of which the then Chancellor of Exchequer raised the spirits and the hopes of his supporters was a promise of the reorganisation of the Treasury. He said that the Government were going to strengthen the Treasury by setting up a Controller of Establishments, a Controller of Finance, and a Controller of Administrative Services. It was added that the Financial Secretary to the Treasury was to summon periodical meetings of finance officers of Departments, and finally—this was the most attractive picture of all—there was to be a Financial Committee of the Cabinet, of which the Prime Minister was to be Chairman, and the Chancellor of Exchequer, Lord Milner and Sir Auckland Geddes were to be members. In the course of that Debate there were all sorts of roseate promises held out by the Government as to the great reductions which were to be made, but there was one intervention, which showed the basis upon which the Government was building. The Noble Lord the Member for Hitchin (Lord R. Cecil) was speaking and had referred to the expensive proclivities of the executive in Mesopotamia and in Palestine and he said he would like to know what was the cost of Palestine. The Chancellor of Exchequer got up and replied, "It is paying its way." The Noble Lord continuing said, "Is it paying its way? I am very much amazed to hear that, but if that be the case one can only be glad that that is the hope and belief of the Government."

Take that as an instance. No one believes now that Palestine is paying its way. It costs between £6,000,000 and £7,000,000 a year. Those were the unsound premises upon which the hopes of this House were built, and the consequent disappointment in the House and the country has been very manifest indeed. What happened after that? In 1920, in addition to the machinery to which I have just refered, a Finance Committee of the Departments was set up. It is true there were two exceptions. One was the War Office, and another was the Ministry of Transport. I do not know why those two offices were exempt. Probably the Ministry of Transport was exempt be- cause is was such a new Department. At all events, there was appointed later a special watchdog, Sir Hardman Lever, at £5,000 a year, to look after the Ministry of Transport. Coming down to a later day, we had circulated the celebrated Treasury manifesto of May of this year, with an imperious demand that every Department should furnish a scheme providing for a 20 per cent. reduction of expenditure. I am still waiting to hear something about the results of that circular. No doubt the Chancellor of Exchequer will be able to give them to us in due course. It is not for lack of asking that we have not had the information hitherto.

I should have thought that with the Prime Minister's circular, with the reorganisation of the Treasury, with the Finance Committee of the Departments, with the Treasury Circular, and now with the Estimates Committee which has been set up, we were at last on the high road to executive control directly responsible to the House. We have been confronted with a new Committee. This time it is a real business Committee. I state at once that on the ground of business qualifications not only have I nothing by way of depreciation to say of those whose names have been suggested, but that if the Chancellor of the Exchequer had spent a very considerable time in selection he would have found it very difficult to select better business men than Lord Inchcape, Lord Faringdon, Sir Joseph Maclay and Sir Guy Granet But refuge has been sought from Governmental and executive responsibility time and time again in the appointment of business committees. The duty of this House is to be its own business committee and to control its own finance. Of that there can be no doubt.

I must say a word or two about the Chairman of this Business Committee. I am sorry he is not here, although in his absence I shall say nothing which I should not have said had he been present. No man has been hit harder from these benches and from other parts of the House, and in 14 years' experience of this House I do not know any Minister who has taken attacks in better part or stood up to them with greater good humour than the Minister of Transport. It is my duty to say what I think about the selection of my right hon. Friend as Chairman of this Committee. My first objection to the appointment is that, as far as governmental experience is concerned, he has been brought up in a war atmosphere, in a spending atmosphere. I should have thought that the right person to select would have been a man who had had nothing to do with letting go the flood-gates of public expenditure, a man who was accustomed to revise and cut down expenditure, and one whose record generally was of retrenchment rather than of extravagance.

Can anyone be found to assert with much authority that my right hon. Friend's creation of the new Ministry of Transport was on moderate or on economical lines? No one will state that. The general opinion in this House and outside it was that the mind revealed in the creation of that super-Department was a mind which was not very much affected by economy or retrenchment. We have most of us come to the conclusion that the Ministry of Transport was built upon a scale far too large for anything like reasonable requirements. With the greatest personal liking for the new Chairman of this Business Committee, I say that I think this was a very unfortunate selection, and that if the Government had desired to carry the House with them and, what is of very great importance, to carry the country with them, they would have been well advised to have made some other selection.

I wish to ask the Chancellor of the Exchequer this question: When is this Business Committee to get to work? The need is urgent. Expenditure is continuing on a scale which alarms the Government. That is quite clear, or they would not have appointed the Committee. The scale of expenditure terrifies the House and shocks the country. Let us see when the Committee is likely to get to work. We have all to get our holidays. The members of this Business Committee are gentlemen of eminence in business, and every one of them is a very hard working man. I have the privilege of personal knowledge of one or two of them. The Chairman of the new Committee is as much entitled to a holiday as any other man in this House. He has gone through a very hard and trying experience. Making all allowance, I see no likelihood of the Committee getting to work until October. I should like very much to have two months' holiday, but I am certain the Chairman of the Committee will not allow his own personal convenience to cut across his duties. In any case, it will be October before anything can be done in the matter. When they do get to work, what kind of steady, zealous, unremitting daily labour can you expect from the Committee? Lord Inchcape is one of the busiest men in the kingdom, indeed, in the financial world. Lord Faringdon is a very much occupied man. Sir Joseph Maclay has big business interests in Glasgow.

What will happen, indeed what must happen unless these gentlemen give up their ordinary daily avocations, is that intermittent meetings will be held, of course, in private. From the very composition of the Committee, the country cannot expect anything like swift and immediate action. I do not know who invented the phrase that for this work one requires an axe, but I think the President of the Board of Trade, in one of his delightful asides, during the Debates on the Safeguarding of Industries Bill, improved on it by suggesting that one wanted a tank to deal with this sort of thing. What progress is likely to be made by such a Committee as this? Will it be at all relative to, or in proportion to, the needs of the situation? Obviously, action is going to be deferred until a more convenient season. Let me turn to the terms of reference, with which by the courtesy of the Treasury, I have been furnished. The Committee is to make recommendations to the Chancellor of the Exchequer for effecting, forthwith, all possible reductions in the national expenditure and supply services, having regard especially to the present and prospective position of the revenue. That is a pretty difficult job for these gentlemen to undertake. They cannot do it with any inside knowledge at all, and must be dependent on others to a large extent for their information. In so far as questions of policy are concerned, these are to remain in the exclusive consideration of the Cabinet. So far, so good; but I find it will be open to the Committee to review expenditure and indicate economies which might be effected if a particular policy had been either adopted, abandoned or modified.

Let us see where we are, having regard to that, when confronted with the well-known case of Mesopotamia. If the Cabinet tells the Committee we are proposing to modify our position in Mesopotamia, then the Committee will have to set to work to shape a policy of expenditure consistent with the modification of our Mesopotamian adventure. The adventure may be abandoned altogether, and, of course, that will be perfectly simple for the Committee to deal with, but I would draw attention to the extraordinary vacillations of the Government policy in every part of the world, and its remarkable performance by way of diversity at home. If this Committee has to vary its estimates from week to week, according to the policy of the Government, I do not envy them their task. It will certainly require what has been called "the lighter touch." The Treasury organisation will be employed in the ordinary course for the purpose of the Committee's work, and some other members of the Civil Service will be seconded for service by the Treasury, under the Committee, and, of course, the Committee is to have all the information required in the performance of its multifarious duties.

The real charge I have against the Government in this respect is, that they are evading their responsibilities. They have implicity, if not explicity, admitted by the whole course of their conduct since August, 1919, that it was their business, as the Executive directly and immediately responsible to this House, to undertake this duty. Now they are seeking by proposing the appointment of an outside Committee—because that is what it amounts to—to relieve themselves of the duty and the responsibility which they ought to undertake. It is quite true the suggestion is made that the Committee should be responsible to this House. It is in the recollection of experienced Memmers of this House, that Committees have been set up from time to time, and how little control has this House exercised over any recommendation they may have made or any policy they may have indicated? I come back to the constitutional premises from which I started. The operation of this Committee must involve a serious derogation of the financial function of this House. It is the duty of the Government themselves to undertake this task. They have the control of the various Departments, and it is the overmastering duty of the Treasury to see to this. I remember my right hon. Friend, who is now the Leader of the House, in speaking on this subject during the Debate to which I have already referred, said:

8.0 P.M.

Earlier in the evening I had occasion to ask a few questions dealing with a matter which touch on the composition of the new Business Committee. I agree with all that has been said by the right hon. Gentleman who has just sat down, regarding the members of this Committee. Their qualifications are certainly good and in some cases are very good. The House will agree that if this Committee is to be really useful, it must at the outset command the complete confidence of the general public. The two points which I wish to raise deal with the chairman of the Committee. In the first place, in order that he should be the ideal chairman, there must be no suspicion in connection with him—rightly or wrongly. The second point I wish to raise, is that where a large payment of money is made by the taxpayers of the country to anybody, especially to one who happens to be a Member of this House, and who is in addition a Cabinet Minister, the House should be fully informed of every detail as to such payment. There can be no doubt that there is considerable mystery and suspicion about the agreement which was made between the North Eastern Railway Company and its then Deputy-Manager, the present Minister of Transport, in 1912. In accordance with the terms of that agreement, so I am informed, a large sum of money became payable in the event of the nationalisation of our railways. No nationalisation of our railways has taken place or is likely to take place, and if that is so, why was this payment made to the Minister of Transport by the Government? The public knows perfectly well that it was amongst the costs charged to the Government by that Railway. The Government said, "No, they are not payable by the Government, but must be paid by the North Eastern Railway Company." The North Eastern Railway Company said, "No; this will not be paid by us, and the Government may take what action they like against us." The Government now tell us that then they referred the matter to the Law Officers of the Crown. I am delighted that the Attorney-General is present this evening, because we can get from him, as we always do, a clear statement in answer to the questions that are put to him, especially when they concern the dignity and the honour of this House. I hope the Attorney-General will tell us the facts of this case. If he does, we may take it that what he tells us really are the facts, and there will be no necessity to go further in asking for any confirmation of what he tells us. We have a serious grievance against the Government, because they have themselves, by hiding and keeping back the particulars asked for, created a suspicion which we none of us care to have aroused. The right hon. Gentleman now has the opportunity of telling us once and for all the conditions of this agreement under which this payment was made, and he can allay once and for all the suspicions which have been aroused by the House not being in possession of these particulars.

The other point that I wish to raise to-night, and on which I should like to have an answer is this, that where a payment is made by the British taxpayer the House should be allowed to know the reasons for that payment. We have asked for this information many times, but we cannot get it. We have been told that if it was an official document we should get the information, but I should have thought this was an official document. At all events, it has been placed officially before the Attorney-General, who is a Member of the Cabinet, and therefore I think the House should have the right of inspecting it. We were told, I think by you, Mr. Speaker, that if it was a public document, that also would put a different appearance on it, and that we should be entitled to see it, but I fail to see why a document should not become a public document if it is paid for out of the taxes of the country by the Government, and if it is a public document we ought to have had it laid on the Table of the House. The whole trouble in connection with this matter has been caused by the Government refusing to allow us the information for which we have asked, and it has been made worse, because the payment in this case, we were told by the Government, would not be made by the Government. I have my references here if the Government doubt that. In the first instance, when it was raised in the beginning of July last year, definite instructions were given by the Government that this £50,000 was not a charge against the Government, and would have to be paid by the company. When the company refused to pay it, it was referred to the Law Officers of the Crown, and the Law Officers, we are told, gave it as their considered opinion that the money must be paid by the Government under the arrangement which was then in force between the Government and the railways of the country. I do not wish to prolong this discussion on this point, but it is an opportunity for us to ask the Attorney-General to state specifically the facts in this particular case, and I appeal to him to help us to come to the conclusion that the suspicions that have been aroused in every quarter of the House are unfounded, and that this payment of £50,000 to a Member of this House while he was a Minister is a payment that was properly made by the Government

My hon. and learned Friend who has just sat down has referred to me in terms so agreeable, and indeed so generous, that I could wish he had found terms other than he did in which to refer to my right hon. Friend the Minister of Transport. I confess that there are grave objections, in my humble opinion, to the practice, if it should become a practice, of cross-examining, or seeking to cross-examine, the Law Officers of the Crown upon the opinions which in the course of their duty they may have written. I, at any rate, will never lend myself to that practice, because I conceive that the duty of a Law Officer of the Crown is to express the opinion which he has formed to the best of his ability, and if his opinions are not acceptable, then he can be, and very often he would be willing to be, released from a task for which he would be found to be unsuitable. But there is one thing which he cannot and will not do, and that is to seek by argument to justify in this House the opinions on questions of law which he has formally expressed. I gather that my hon. and learned Friend is not really asking for anything of that kind. What he is asking for is, if I follow him, an explanation of the surrounding circumstances and a statement as to the view which was formed at the time by the Law Officers, and I am perfectly willing to give both of those things. But what I am not going to do, and what with great respect I never will do, is to enter here into explanations or justifications of the legal opinions I may have formed.

What were the facts in this case? A sum of £50,000 had been expended in the year 1919 by the North Eastern Railway Company, and that sum was charged in the accounts of the railway company for the second half of the year ending the 31st day of December, 1918. That payment was made to the officer who is now my right hon. Friend the Minister of Transport, in consideration of his surrendering all his claims under a certain agreement which he had made with the North Eastern Railway Company in the year 1912. The claims which might have arisen under that agreement were surrendered in February, 1919, and it was in consideration of that surrender that the sum of £50,000 was agreed to be paid, and was in fact paid, by the directors of the North Eastern Railway Company.

I am not going into that, and I trust my hon. and learned Friend will bear with me for a moment. I am sure that he has sufficient experience of the law not to throw up his hands and express a final and adverse opinion at the very beginning of a statement which he has invited. The sum of £50,000 was paid in those circumstances at that time, and the question, and the whole question, was whether in those circumstances that was a sum which was properly chargeable to the working expenses of the railway company. The House observes that the agreement in respect of which that amount of money, that sum of compensation, was paid was an agreement made in the year 1912—an agreement made, that is to say, at a time when neither the railway company on the one hand nor my right hon. Friend the Minister of Transport on the other hand contemplated the War or the Government's control of the railways. The agreement of 1912 was an agreement made not in contemplation of any such events at all, and the only reason why that agreement ever came to be considered on behalf of the Crown was because of the subsequent, and at that time entirely unexpected, bargain which was made between the Crown and the railway companies after the outbreak of the War.

What was that bargain? When the Government took control of the railway companies and their undertakings a special arrangement was made as to compensation, an arrangement which I think the House recognises was advantageous in comparison with the provisions of the older Statute. But the basis of that arrangement was this, that the railway companies were to find their compensation for the control and interference which the Government was going to exercise in the payment by the Government of the deficiency, if any, in the aggregate net receipts during the period of control as compared with the aggregate net receipts for the corresponding period of the year 1913. It was for that reason, and for that reason alone—for that really unexpected reason—that it became material to consider whether this sum, arising out of the agreement of 1912, though it was paid in February, 1919, was a sum properly chargeable to the working expenses of the railway.

What was there to be said against that view? My hon. Friend asks what was the agreement of 1912. In my opinion, he has no concern with the terms of that agreement, and I will tell him why. Nobody suggests, nobody has ever suggested, and nobody, I think, will venture to suggest, that the directors of that railway company, in commuting the claims under the agreement of 1912 for this sum of £50,000 were not acting in good faith. Nobody, I think, will deny that. Nobody will deny that the directors of the railway company were acting, as they believed, in the interests of the shareholders of the company. If that be so, and assuming those facts—I am not going to imagine suggestions of fraud, which nobody dares put forward—assuming those facts, that the directors were acting in good faith and in the interests of the proprietors of the railway, then the question whether it was a prudent arrangement is entirely irrelevant. They are entitled to say, "We have made this payment; we have been acting in the interests of the shareholders of the company, and we are debiting this sum to the working expenses." Who is to challenge that?

Let me add this further point. This matter was brought to my knowledge, and submitted for my opinion, in the month of December last year. By an extraordinary coincidence, as I found, this very same railway company, in the year 1913, that is to say, a year anterior to the War and to the period of control, had set aside another large sum of money—not quite so large as this, but a considerable sum—for compensation to another high official of the railway com- pany, and that sum of money had been treated in exactly the same way. It had been debited to the working expenses of the railway. Let us be fair. Suppose that this sum of money had been paid, not to my right hon. Friend with a name which has become famous, but had been paid to a railway official who was called Mr. John Smith, or to a railway official who was called Mr. William Robinson, who would have been heard to raise what my hon. Friend calls suspicion or mystery about it? Who speaks of suspicion and mystery? Does he desire to heighten that suspicion and to cultivate that mystery?

I am afraid that my hon. Friend's speech might have led to a contrary conclusion.

My right hon. Friend used the expression, "If it had been done in another case." It was done in the case of the Metropolitan District's managing director.

Let me add this further. I referred to the payment in the year 1913. The effect of debiting that round sum in 1913 to the working expenses of the year was to reduce the standard of net receipts for that year. It would have been impossible, in my opinion, to find any legal ground for challenging what the directors had done. But, supposing that it had been possible, you could not have challenged the one sum without challenging the other. If the Government had done that, and applied the same weight and the same measure in the one case and in the other, the position for the taxpayer would not have been better, but worse. Suspicion there has been; mystery there has been. There has been no need for either, and if this agreement, entered into and carried out by men whose honour nobody dares to impugn, had been an agreement relating to an obscure individual, no questions would have been raised.

When the payment was made in 1919, was the Minister of Transport still an official of the railway company?

It was, as I understand, upon his leaving the railway company that this surrender and payment was made. I do not remember the exact date, but the position was this, if my recollection is right: Under the agreement, my right hon. Friend continued to be, I think it was, deputy general manager of the railway company. He was lent to the Government. Although the agreement still remained in full force and effect, it became apparent that his services were such that it was desirable, and indeed necessary in the public interest, to continue his work as a Minister. The two things could not co-exist side by side. But there was this agreement, and the railway directors, acting, as I say, bonâ fide in the interests of the railway company, commuted all the claims that my right hon. Friend might have had under that agreement by the payment of a lump sum, and treated that lump sum precisely as they had treated similar lump sums in previous years, when no question of this kind had arisen or could arise. I repeat, the suspicion and mystery which have been focussed upon this matter are not traceable to the intrinsic merit of the topic. They are the reflections of an intention to wound and to criticise, based upon other grounds and dependent upon totally different circumstances.

There I disagree. The agreement was an agreement made between my right hon. Friend and the North Eastern Railway Company.

The taxpayers have not paid for it. [An HON. MEMBER: "Then who have?"] I am not going to reiterate what I have already said twice. If the hon. Member is still of the opinion that the taxpayers have paid for this agreement, it is quite obvious that any words of mine will not remove that impression from his mind. I end as I began. Let us be fair; let there be finality upon this matter, and let us not criticise this commutation in a spirit different from that in which we should have been prepared to consider it if the other party to the agreement had been Mr. Smith, Mr. Brown, or Mr. Robinson.

I do not know whether my hon. Friend opposite is satisfied entirely by the speech made by the Attorney-General.

I think the Attorney-General has been rather unfair to my hon. Friend in trying to make out that he has created a sort of atmosphere of suspicion and mystery. I should have thought it was the Government who had created this atmosphere of suspicion and mystery when it refused to produce the document which it was quite evident the House wished to see. I did not, however, get up to pursue that particular point. I really wanted in a very few words to ask the House to consider a little more—and I am sure various other hon. Members will speak about it—the Business Committee. I am very glad my right hon. Friend the Member for Peebles (Sir D. Maclean) raised this question. I cannot understand why the Chancellor of the Exchequer appointed this Committee. I cannot understand the right hon. Gentleman minimising his own office, because it is quite clear that in appointing this Committee he very largely derogates from the prestige of the Treasury. I have spoken to various Members and to Officials of the Treasury during the last two or three days, and they certainly regard with alarm and disgust the appointment of a Committee practically over their heads.

It seems to me the problem we have to solve, and the situation of our national finances is far too serious for a Committee of this kind to sit upon and decide upon; and perhaps I am doing no harm in bringing before the House one small consideration as to what really is our situation at the present time. For this, after all, is the kind of problem this Committee will have to review. At the present moment we are being taxed per head of the population six times what we were taxed before the War. Income Tax is five times that of pre-War times, and if one looks through a list of the various commodities which are taxed and which come into this country, it will be found in every case that the tax has enormously increased, sometimes it is twice, sometimes two, three, or four times more than it was. In the case of sugar, I believe, it is fourteen times what it was before the War. The whole reason of this enormous taxation is the enormous expenditure in which we are involved at the present time. I cannot for the life of me understand why we have got an increase of 90,000 officials over and above what we had before the War.

Take our fighting services. After all, we have beaten the greatest military power the world has ever seen; yet at the present moment our fighting services cost us no less than 4s. out of every pound of direct taxation, and nearly 3d. out of every shilling of indirect taxation. The Army is costing us 96 millions against 28 millions pre-War. To-day we have 137,000 more soldiers in the British Army than before the War. The Navy costs £80,000,000 as against £50,000,000 pre-War, although the German Fleet is at the bottom of the sea. Our Civil Services cost to-day six times more than in pre-War times. If you take war pensions which, after all, you cannot possibly diminish, they still cost us many times what they did before the War. Revenue Departments cost us nearly three times more than before the War. Over and above all that you have Civil Service Supplementary Estimates amounting to over £60,000,000, and another £10,000,000 was thrown in the other day for the coal mining industry. I do not think our anxiety is in the least diminished by the Treasury Circular which was sent out the other day by the Financial Secretary. In it he pointed out quite clearly that if there was no extra taxation you cannot expect a revenue of more than £950,000,000. You have to deduct from that one or two large items. You have to take about £365,000,000 pension services, £100,000,000 for certain contractural liabilities to holders of War Loan, and you have, therefore, a balance of £485,000,000 for the whole of the Supply Services, without any provision for repayment of debt. This year these services cost £603,000,000. Therefore it is absolutely clear that a tremendous and drastic cut in expenditure is necessary. Before the War these services were costing £163,000,000. So that even if you are able by a tremendous cut to reduce them to £485,000,000, they will still cost three times what they did before the War.

Profits and wages are falling all the time. I am anxious that the Chancellor of the Exchequer should consider this question. All classes are feeling the taxation. Unemployment is rife. Therefore it is absolutely essential, to my mind, that the taxes should be very largely reduced, and the only way to do that is by reducing expenditure. What is the remedy of the Chancellor? He has set up—and he has given us the names to-day of—a so-called Business Committee. I believe that this Committee will be absolutely futile. If it is not futile it will be absolutely unconstitutional. I believe it is going to be futile—for various reasons. In the first place, you are placing at the head of it the present Minister of Transport. Nobody recognises more than I do that the Minister of Transport is probably one of the most popular Ministers in this House. He always treats everyone with courtesy, and I am sure he does his utmost to please. But the worst possible head of such a committee is somebody who until a few weeks within the start of the committee himself has been the head of one of the Government Departments, and one which has probably spent more money in a short time than ever any other Government Department did. I find that in the Ministry of Transport you have got a very large financial Department, consisting of no less than 54 officials, and costing over £30,000. Yet, although there is this very large and expensive staff to look after the finances of the Ministry of Transport, the Government had to bring in a special official at £5,000 a year to look after that expenditure. I have a speech here made in 1919 by the Minister of Transport, in which he confessed that Sir Hardman Lever was being brought all the way from America to be the watch-dog over the expenditure of the Ministry of Transport. Yet this is the very man who is chosen as chairman of a committee which has to look after the economies of other Departments!

If you go through the Estimates you will find that the Ministry of Transport is one of the most extravagant Ministries that has existed for a great many years. I have been looking through the Estimates very hurriedly during the last hour, and I find that there are no less than 39 officials who are paid salaries of £1,000 a year and over in that Department alone—an infinitely higher proper- tion than in any other Department of the State. This Business Committee will be absolutely dependent upon the whole of the Treasury machinery for its information and for any power that it may get. Therefore it seems to me that you are really adding a fifth wheel to the coach. I cannot understand why my right hon. Friend himself does not take up the matter, and, through his officials at the Treasury, deal with this question and do his best to solve it. If this Committee is really going outside the ordinary powers of a Committee, if it is going to discuss policy, and if it is at all going to guide policy, then I say it is not a constitutional Committee. It is going outside the powers which the Government and this House ought to have. I believe that unless the Treasury can get back its control we shall get into a hopeless financial morass. Let the Government, first of all, ration itself to a definite figure. Let it make up its mind how much expenditure this country can afford, then then it will be perfectly easy to ration every Department in turn. I know this means a ruthless cutting down of commitments and of the number of officials that lead to commitments and extravagant expenditure. Lately we have had two Reports which seem to me very disquieting indeed. We have had the Report of the Estimates Committee, and it is quite clear from the evidence of Treasury officials that there is great extravagance going on in all Government Departments to-day. Is it likely, if the Treasury has not control over those Departments, that an outside Business Committee is going to have the slightest influence?

We have had the Report of the Public Accounts Committee published this morning, and that is even more serious. They review practically every department in turn, and the Report shows that salaries have been increased without Parliamentary sanction. They take the Army, the Navy and the Air Ministry, and they show that money has been paid in all directions without the slightest sanction from this House. They show that practically the Foreign Office has no control over its establishment; that the Shipping Ministry went in for sales of tonnage in a most unbusinesslike way, and they show that at the Air Ministry there is no proper financial control. Therefore, I say that the Treasury is completely losing its control, and the appointment of this Business Committee means that the Chancellor of the Exchequer is still giving up more control. I cannot understand why my right hon. Friend minimises his office; and goes out of his way to give control to other people which he ought to exercise himself. I was hopeful when the right hon. Gentleman took office that we were going to see a new regime, and that he was going to use the axe which would go to the root of the tree and cut down expenditure. I hope the Chancellor of the Exchequer will undertake this reform himself, and if he does he will have the support, not only of this House, tout of the whole country.

The object of the appointment of a Business Committee is so laudable and the prospect it offers so fair, that it seems somewhat ungracious to have any doubts as to whether the objects of the. Committee will be achieved. My hon. and gallant Friend who has just spoken has expressed doubts as to whether the Committee will be effective. If I may judge from the names of the members of that Committee, I am not sure that I can share his doubts. Lord Inchcape and Sir Joseph Maclay are men of such vast experience and business character that I should doubt anybody who told me that any committee upon which they served would fail in accomplishing, at any rate, some results. I am not so much concerned for the moment with the question as to whether the Committee will be effective in achieving the object set out in the terms of reference as I am with the relation of the Committee to the House of Commons. If I caught the words of the Chancellor of the Exchequer correctly in his reply, the Committee is to make recommendations forthwith for effecting all possible reductions in the national expenditure and supply services, having regard to the present and future position of the country.

The first question I should like to ask is whether the appointment of this Committee is a policy of hope or despair. Is the position that specialists have to be called in where the regular physician has found himself baffled by the problems presented to him? I am accustomed to read about the great ability and achievements of the Chancellor of the Exchequer. I am fortunate enough to see sometimes the Glasgow papers, and I rarely open them without finding some expression of pride on the part of the citizens of Glasgow at the position which the right hon. Gentleman has achieved. I beguiled the hours of a tedious journey from the north last night by reading an imaginary account of the position which the right hon. Gentleman would have achieved if only 10 years ago Stirlingshire had sent him to Parliament. After reading the description of my right hon. Friend's abilities, I share the surprise of my hon. Friend the Member for Wood Green (Mr. Locker-Lamp-son) that the right hon. Gentleman should hand over to another Committee duties and responsibilities which peculiarly belong to him.

It is to be a Committee of business men, and I ask myself if my right hon. Friend has stolen the clothes of the hon. Member for South Hackney (Mr. Bottomley). Is this the Business Committee which has always been held out to us as the one means by which this Government can escape disaster? Most of the business men who were at one time brought into the Government to steer us through the War are leaving it because they find the business of Government either too irksome or difficult for them to do for the rest of their lives. This is a return to the theory that salvation is to be found in consulting business men where the politician is useless. I am surprised, however, when I look at the terms of reference to read that they are not to be allowed to consider questions of policy, which is the peculiar province of the Government. I do not know how any reduction in expenditure can effectively be made unless questions of policy are considered.

I was once acquainted with a lady who had very drastic methods of dealing with her husband, who besought her to stop her extravagance, which was slowly bringing ruin upon him. She immediately made arrangements for dismissing the family butler, reduced an ample table to a chilly and ungarnished board; she cancelled the arrangements for the summer holidays, and her spouse was reduced to such a position of penitence that he no longer made any complaints about her extravagance. She realised that you cannot secure economy by cheeseparing, but you have to alter the nature of the establishment if you are to accomplish the economies of which we hear so much. There are ways of cutting down expenditure in Government Departments. I have recently seen a circular in the Department of a public authority, in which it was represented by the heads of the Department that it was necessary to increase the staff in order to cope with the increased duties. The actual recommendation was that no further officers should be appointed, but that the existing officers should be required, under the terms of their appointment, to work overtime without additional remuneration, in order to cope with the increased duty. That is not the economy we ought to encourage. I have heard, in connection with another Government Department one of the fighting departments, that the head of it in order that he might satisfy himself that there was only a proper staff maintained to do the work, reduced the staff in order to bring about the reduction of £15,000,000 or £20,000,000 which he was directed to make, and he reduced the staff to such a level that he found members of it coming to him with tales of breakdown. Then and then alone was he satisfied that he had reached the rock bottom and he began thereafter to amplify the staff until the tales ceased to be brought to him. That again is not the economy we desire.

We do not desire economy by starving civil servants. I have very little sympathy with the outcry sometimes made in this House as to the alleged overpayment of the higher members of the Civil Service. I think sometimes of one name which I ought perhaps not to mention, the name of a man who controlled more than anybody in this country the administration of Income Tax. He worked long and arduous hours. He gave his great ability to the task and he was paid a salary which would have shamed any business house had it offered it to its head accountant. We want our civil servants to be properly paid for the arduous and responsible work which they do. There are many economies which might be made in Government Departments, but you do not need a Lord Inchcape, or the right hon. Gentleman the Minister of Transport to discover them. They are economies which should be made by the heads of the Departments and by the Treasury, and if the Treasury and the heads of the Departments cannot control this petty expenditure, as one may call it, surely these five gentlemen are not going to sit from day to day to inquire into the rate of salary which is paid to either superior or inferior officials. If this Committee is going to inquire into that, who will supply the facts? The hypothesis is that the Committee is going to be a sort of court of appeal as against Departments which have proved unresponsive to the Circular calling on heads of Departments to reduce their expenditure. In law it is often said it is not the opinion that matters, it is the case that invites the opinion. Let me write the case and I will guarantee the opinion. When this Committee sits to inquire into the staff of the Ministry of Labour, who is going to supply the facts upon which it will be expected to express an opinion, as a court of appeal, when the Treasury have proved unable to accomplish the same end? It will be the Minister of Labour and his officials. What do you suppose will be the verdict when they supply the facts? Of course, they will make the best case they can for the maintenance of the staff in its existing form. If that is to be part of the duty of this Committee, I regard it as derogatory to their position in the business world. It is clearly not right that their time should be taken up with such work which the Treasury and the Government Departments ought to accomplish.

What I want to insist upon is that it is only questions of policy which can really effect this reduction of expenditure. It is the question of policy that dominates the question of economy. I have very little sympathy with the party that is supposed to sit on the benches opposite. They have but one cry, "Anti-waste." They are constantly crying it outside as well as in this House, but never a single idea comes from them that is productive of anything good. "Anti-waste, anti-waste." They repeat the cry weekly, and that is all. I have no sympathy with that sort of economy. What the country is rebelling against is not expenditure upon policies which it approves. They will not grudge expenditure on policies of that kind, but they do grudge expenditure upon policies which the country does not understand and upon which it has never been consulted, policies which are leading us into a morass from which this country sees little prospect of extracting itself. I believe there will be a considerable reaction against the mere cry of "Anti- wastes" which is preventing us from fulfilling housing schemes that alone carry into effect the Prime Minister's pledges. If anybody takes up Anti-waste with the idea that it is going to be popular in the constituencies, they will very soon find out their mistake. In a short time the "Anti-waste" party will be as conspicuous by its absence from the House as it is by its non-appearance on the benches opposite to-night. If it is not the Anti-waste policy that this Government Committee is to consider, what is its business to be?

I want to know what will be the position of this Committee in relation to this House. This House has always been jealous of financial control. It has been jealous of its duty to raise money for the conduct of public affairs. Is this Committee to override this House? Suppose recommendations are made by private Members or by parties in the House, by supporters of the Government, or by Members of the Opposition, pointing out ways in which economy can be effected. Will those recommendations have the greater weight, or will the recommendations of the Committee be always used as a set-off and as an answer to the recommendations of private Members? Are the Committee to be supplied with information which is forbidden to Members of this House? Are they to be in a superior position to the House of Commons, which has been elected to perform the very duties which this Business Committee is to be appointed to do? My right hon. Friend may say, and there is a measure of truth in it, of course, that a Committee sitting round a table, a Committee of eminent business men, can do its work a great deal better than two or three hundred men of mediocre ability and business experience. That is not the way to encourage us to perform our duties. We have little opportunity here of influencing the course of legislation, and necessarily so, under the existing constitution. What is left to us is to try and help in the control of finance, to make suggestions, and to invite the Government to consider ideas which may be presented by private Members on the Back Benches. Now we are handing over this to a Business Committee which will be much better informed. That Committee will get from the Government all the information that is necessary, and make all suggestions that are needed, and apparently the House of Commons may go about its business anywhere but in the House, feeling content that there are five business men doing everything that the Members were elected to do, and that they are indeed paid to do. I wonder what the position of the House of Commons will be when this Committee is sitting. What about the Estimates Committee? Which will be the more powerful and the more influential Committee—the Committee of business men or the Estimates Committee of the House of Commons? Or which will be the more powerful, the House of Commons or the Committee of business men?

I confess that I regard this question as of some importance. It is not merely that I am jealous of my privileges as a Member of this House; I may not be a Member after the approaching Election, but as a citizen I regard the position of this House as of some importance, and I think it is likely to have an effect upon its power and influence in the country if a Committee is set up to do work which this House ought to do. Either this Committee is going to do the work which the Treasury and Government Departments ought to do, or it is going to do the work which the House of Commons ought to do; and, whether it be the one or the other, I feel grave doubts whether it is a proper policy for the Government to make themselves responsible for. Then I want to ask one final question, namely, what is to be the position in the constitutional connection? Is this to be a permanent part of our constitutional Government? The terms of reference say that the Committee are to make recommendations to reduce expenditure forthwith. When they have made their recommendations forthwith, whatever that may be—whether it means before the General Election or within the present financial year—will the Committee be functux officio, or will it be reappointed next Session to form a sort of condominium with the Estimates Committee or with the House of Commons? I regard that as a grave question requiring an answer. If the Committee is to be appointed now, and is never to be re appointed hereafter, what is the necessity for its appointment now? It is not even as though the House were about to begin an arduous Session, when its Members might be so fully occupied with other work that they would have no time for these duties. The House of Commons is separating; we are to have no Autumn Session in order that there may be leisure for the Government Departments to consider the proper work of administration. And the Business Committee is set up at this time.

Perhaps my right hon. Friend will find an opportunity, if the other matters with which he will necessarily have to deal allow him to do so, of answering these questions: What is the relation of this Committee going to be to the House of Commons? What is its place going to be in the permanent constitutional Government of this country? Although I have every confidence in the individual Members of this Committee, and by no means share the criticisms that have been made here as to the unfitness of the right hon. Gentleman who is to preside over it, I do think that the appointment of five persons, none of whom, except the right hon. Gentleman, is a member of this House, to perform duties which might fall upon this House, is an almost contemptuous expression of the opinion which the Government hold as to the capacity and public spirit of the individual Members of the House of Commons. They may be right, or they may be wrong, in holding that opinion, but I think it is an unfortunate opinion, and that it is as little to the credit of the House of Commons as—I hope I may also say—of the Government, that they should have gone out of their way to appoint this Committee, instead of encouraging and trusting the House of Commons to do the work for which, at any rate, it is supposed to be fitted and elected.

9.0 P.M.

With much of the speech to which we have just listened I am in cordial agreement. It was mostly devoted to pointing out the difficulties and the problems with which this Committee will have, to deal. We all admit that those problems are very grave, and that the difficulties will be very great; but, so far from thinking that that is a. reason for dispensing with the services of this Committee of very eminent business men, who are also eminent public men, I should think it really is a reason why the Chancellor of the Exchequer should take into his service their very great capacity, and should seek as much assistance from them as he can get. As to the general attitude of what has been called the Antiwaste party—and by that I mean the official Anti waste candidates—and the general opposition to the Government that is founded upon allegations of their devotion to extravagance and waste, I think that the attitude they have taken up in this Debate is extremely characteristic and very instructive. The Chancellor of the Exchequer appoints an Anti waste Committee, and you would think that the Anti waste party would be the very first to welcome that, and to say that the more help the Government gets the better in its very difficult task, with reference to which they are always using such phrases as" the broad axe," "drastic cutting down," and the like. You would think that to get the help of the Minister of Transport and others who, whatever they are, are certainly people who do with all their might that which their hand findeth to do, was just the very thing that the Chancellor of the Exchequer should do in the circumstances. But no, that does not please the Anti-wasters. They assail him with every form of invective. They call it unconstitutional; they call it useless; they call it derogatory to the prerogative of the Treasury, of which they are such very keen supporters. They assail it with every form of criticism and abuse.

I think that that really gives one a great clue to what this sort of attitude towards the Government, and this sort of attack on the Government, really amounts to. The main ground of attack of the right hon. Gentleman the Member for Peebles (Sir D. Maclean), who opened the present Debate, was that the Chancellor of the Exchequer was evading his duty, was shirking his responsibility, was putting, off upon an outside Committee, as the right hon. Gentleman called it, duties which he ought to undertake, and was running away from his job. It is not very difficult to see through the fallacy there. Nobody expects the Chancellor of the Exchequer, who one week has to go to France, another week has to settle great strikes, and has a good part of the burden of the Empire upon his shoulders, is going about peddling among the details of the matters with which this Business Committee is appointed to deal. He is not going about to see if there are too many flappers in the War Office, too many clerks in the Labour Ministry, or this thing and that thing. He cannot possibly do it all off his own bat, and nobody expects it of him. He may be a Hercules, but to cleanse these Augean stables which have accumulated so much dirt through the War, is a task to which even he cannot possibly be equal, and to which no man in himself is equal. He is bound to call in assistance, and to call in every assistance he can get. It was suggested in the last speech that this is a job for the House of Commons, and that the House of Commons are very much better than a Committee consisting of the Minister of Transport, Lord Inchcape, Lord Faringdon, and so on. I am not too humble a Member of the House of Commons, and I cannot see the Members of the House of Commons running in and out of the offices and suggesting concrete details as to how the expenditure is going to be cut down.

If my hon. Friend will forgive me, my suggestion is not at all that the House of Commons should do the work of what he calls running in and out of Government Departments. My whole point was that that work ought to be done by the Departments and by the Treasury, but that, if it is a question of policy, then the House of Commons is the proper authority.

Certainly. As to the great broad lines of policy, I do not suppose the Chancellor of the Exchequer would say for a moment that the authority of this Committee is going to override the authority of the House. The great difficulty with this House is, I think, to get it to take more humble views of the lines on which our policy ought to run and to suggest concrete measures which can be taken for the furtherance of economy, instead of doing what is more popular and what there is a very natural tendency to do—suggest concrete ways for the spending of more money. As regards the general lines of policy, of course the Government would be the last to say this Committee is going to override the authority of the House of Commons. The Government itself, in these subjects, cannot override the authority of the House of Commons. The House of Commons has a say upon all these questions of broad policy. It is quite right, of course, that the Committee may make minor suggestions about policy, and I understand they have the power to do so. They might suggest, for instance, that a certain line of policy is costing too much and is more expensive than it is worth, and as a matter merely of suggestion to the Chancellor of the Exchequer—and that is really their function—they are not interfering with the constitutional machinery of this country.

No one will say that the Chancellor of the Exchequer is adding another Clause to Magna Charta, or anything of that sort, by appointing this Committee. He is merely appointing it to make suggestions and to make reports, and the Chancellor of the Exchequer, and any Government official, has a perfect right to appoint the most efficient people he can find to make suggestions and reports to him as to the proper line of policy of his office, and particularly the proper line of cutting down expenses, which is the most urgent need for this nation. Of course, it is perfectly true that during and since the War it is large measures of policy, which I am bound to say have been embarked on by the Government generally with the full applause of the whole country and the whole House of Commons, which have led to very great extravagance That is to say. you had necessarily during the War a tremendous extension of the business of the Government and that has led to a sort of Socialistic instinct in the people, because though everyone blames the extravagance of Government interference, everyone cries out for Government interference Any hon. Member who does not put the contents of his post bag; straight into the waste paper basket, but, as I do, reads them most carefully, knows that an enormous number of people who are in difficulties with this, that or the other thing, and who would never previous to the War, have thought of going to the Government or their Member of Parliament or the House of Commons about their little worries and troubles, go to some Government Department and bring their grievance before them to see if they cannot put it right. That is the sort of instinct that is abroad in the country, and that is the sort of tendency that has grown up and that has eventuated in a tremendous exension of Socialism and a tremendous extension of State business with, of course, the tremendous expense that is inseparable from these things.

We have now rather awakened from our dream, and the Government and the House of Commons are trying to get back to saner lines of finance and of politics. But you have these tremendous Departments there, and every Government Department gets a sort of esprit de corps about it, a sort of instinct of self preservation and an instinct that Buggins must not lose his job, as the classic phrase goes, and an intinct to get plenty of officials there. It will require on the part of the Treasury the very greatest amount of exertion and capacity to meet that instinct and to cope with it, and if it is going to economise in these Departments and in these policies, it will only economise in the face of the very greatest opposition from them and from very many people in this country, and from not a few people in the House of Commons itself. It is up against a tremendous opposition. It finds itself ground between the upper millstone of the Anti waste party and the lower millstone of the squandermaniacs, and the squandermaniacs are by no means confined to the Treasury Bench. In fact, really the squandermaniacs and the Anti waste party very often coincide, so that my simile of the upper and the nether millstone does not really apply, and I am sure most hon. Members will agree that when there is anything, say, upon the Income Tax for cutting down, allowing concessions to this, that, and the other person, you generally see the prominent Anti wasters streaming into the anti Government Lobby when the Government are doing the unpopular thing and trying to keep the Treasury in money to meet expenses. You have all these tendencies, and you have the Government faced with a very difficult task. I think the Chancellor of the Exchequer and the Government are to be congratulated upon appointing a strong anti waste Committee. It will have great difficulties and great problems before it. I am glad the right hon. Gentleman the Member for Peebles (Sir D. Maclean) says that at least the personnel of that Committee meets with his approval, and I think it will meet with the approval of everyone. A great deal of criticism has been passed on the Chairman. The maxim has been quoted very often in this connection," set a thief to catch a thief" and " a poacher makes the best gamekeeper," but there is no doubt that a Minister who has been in charge of a Department and knows the ins and outs of the public service is the very best person to appoint for a Committee of this sort, and I am glad to see that all these people, like Sir Joseph Maclay and Lord Inchcape and Lord Faringdon, are people who are acquainted with the public service. They are great business men with very acute brains, and they are thoroughly acquainted with the ins and outs of the public service, and if you are going to get a strong Committee together to deal with this very burning question I do not think a stronger Committee could be got. The terms of the remit do not introduce an innovation into the Constitution at all. I cannot see how that can be levelled against them They cannot over ride the authority of the House of Commons. No one can say they do in the least. The Government does not say that itself. What they will do, we all hope, is to help the Chancellor of the Exchequer in his very uphill task. I think I am speaking for a great many hon. Members when I say they welcome this as an earnest of a real, honest endeavour and wish to cope with the difficulties of the financial position.

The hon. Member favours the appointment of this Committee, because in his opinion it will be able to make concrete suggestions and effect economies in the public service. The facts which will enable it to make these suggestions must come from the officials of the Departments or the servants of the Treasury. Their decision will only be an opinion, and I suggest that the opinion of this House and of the Cabinet on such a matter is all that is necessary. To call in an outside body to determine the policy of this country is not consistent with the past history of this country and is a direct slight on the House of Commons. I wish to refer once again to a point raised by my right hon. Friend the Member for Peebles (Sir D. Maclean) during the last few months.

From this side of the House we have pressed on the Chancellor of the Exchequer that his Budget statement should be revised in the light of recent experience. There can only be one opinion of the reason why the Chancellor of the Exchequer refuses to state the real facts. During the Budget Debate concessions were granted to the taxpayer. Since then the revenue has fallen and expenditure has increased, the amount of money received into the Exchequer from the sale of War Stores has dwindled, with the result that instead of a balance of revenue over expenditure, through the policy of the Government the expenditure exceeds the revenue of this year by nearly 20 percent. I am quoting from the Revenue Returns up to 6th August of this year, in which it is stated that the Revenue is £314,000,000, and the expenditure during the same period £369,000,000, an excess of expenditure over revenue for practically the first 4½ months of this year of nearly 20 percent. We have heard much of the 20 percent, reduction in expenditure which was suggested by the Treasury Circular, but judged by the only test which this House can apply to the policy of the Government on the safeguarding of the public purse, that has not been realised. The figures are all to the contrary. I have quoted the figures from the "Times" of 13th August, and I think they are absolutely accurate. I am, therefore, entitled to say that the Budget is already falsified, and that the Chancellor of the Exchequer refuses to state the true financial position, and by that means he disguises from the country the true facts, which are very different from the statement made to this House in April last.

With respect to the Committee which is to be appointed, I agree that it is composed of able men, men who are well known, but I submit that it is policy alone which can determine expenditure. Once a particular policy is determined upon and settled by the Cabinet and the House of Commons, the most effective administration in the world would not reduce that expenditure by more than 5 percent. The very closest scrutiny of every penny spent, once a policy is decided upon, would not reduce the expenditure by more than 5 percent. My main point is that the cost of Government policy is determined by the Government. The cost of policy is contained in the Parliamentary Estimates. Those Estimates reveal facts which are apparent to every Member of the Cabinet and to every Member of this House, and to invoke an outside Committee to ex- plore the ground afresh is a direct slight and shows a contempt for the House of Commons, which I very much regret the Government have shown today. When this Committee gets to work, will it go about from Department to Department? Can we imagine the Minister of Transport and his Committee joining issue with the Secretary of State for the Colonies as to the number of men required in Mesopotamia? Let us imagine that they approach the Army Estimates. Are they more able than the Cabinet to determine the number of men in the Army? The Army Estimates amount to over £100,000,000, and that figure is determined by two broad considerations—first, the number of men required, and secondly, the pay of those men.

Is it fair, is it just, to the House of Commons, and is it fair to the Cabinet of this country—I do not speak of the Cabinet of His Majesty's Government—that this power should be placed upon this outside Committee, and that the Cabinet should delegate to this outside Committee the powers which they themselves should exercise? I can well imagine the Chancellor of the Exchequer saying," It may be true about the number of men in the Army and Navy, but that is a question which the Cabinet alone will decide. There are vast expenses at the Admiralty and the War Office, and cannot this Committee point out effective economies that could be achieved in either of these two Departments?" On that broad, general subject, I say that the reform of a Department, to be effective, must start from within, while the pressure exercised to bring about that reform must come from without, and the House of Commons is the proper and effective place to exercise that outside pressure, and to make each Department curtail its expenditure in administration. Let us consider this Committee going to the Admiralty. They will be told that the Cabinet have decided on the building of four capital ships, and that the result of the building of those four ships involves necessary expenditure in other directions. Can they effect any economies without a complete change in the foreign policy of the Government? They can visit the Air Department, where they will also be told that the Cabinet have decided that the Air Service is to consist of a certain number of men, and so on throughout these fighting Services. It is policy, and policy alone, which determines the main items of the Parliamentary Estimates. The fighting Services cost £200,000,000 this year, and if the Cabinet are really anxious to curtail the expenditure, they need not delegate their powers and authority to the outside Committee. They can give orders to each of these Departments, in the one case to curtail the number of men employed by the War Office, and in the other to curtail the number of ships to be built by the Admiralty. By that simple process of altering their policy they can curtail expenditure to a large degree. Let the House consider the visit of this Committee to one of the Civil Service Departments. It might visit the Ministry of Health. It might point out to the Minister of Health that his administration was expensive. The Minister of Health is quite as able and as competent to administer the internal work of his Department as any outside Committee. They might point out, perhaps, to the Minister of Education that his expenditure was very large. He would turn round to this Committee and say,"I am forced by Parliament and by the Cabinet to pay certain salaries to teachers. I am forced by the Cabinet and by the House of Commons to provide school accommodation for children up to a certain age. If Parliament and the Cabinet place the responsibility upon the Minister of Education, I must ask the House of Commons to provide me with the necessary money."

Therefore, in all these various departments, you come down to this, that policy and policy alone determines expenditure, and if the Cabinet are anxious to reduce expenditure they must come to this House and ask for powers to review and alter past decisions, and by so doing effect the economies which they desire. To effect these economies the Government must rely less on force to execute their policy. They must depend on moral force, and British justice if they are going to effect those large economies in the fighting services which the country demands. If they do effect those large economies in the fighting services I think they can with more power turn to the people of this country, and appeal to them to delay their long cherished ambi- tions in the cause of social reform. Until the Government do curtail the cost of armaments, it is idle for the people of this country to deny themselves.

I think the House of Commons in all quarters would appeal to the Government to delay this Committee. What can the Committee do which the Cabinet are unable, to do with the active assistance of the House of Commons? In all these questions the ultimate responsibility must rest with the Chancellor of the Exchequer. He cannot delegate his responsibility to any outside committee or even share that responsibility with his colleagues. The House of Commons has entrusted to him the most difficult task in the Cabinet. It is, I believe, more difficult and more onerous even than the position of the Prime Minister. The only way in which real and lasting economies can be effected is by the knowledge, and I say it without any personal disrespect, is that the resignation of the Chancellor of the Exchequer on a question of public policy would involve the resignation of His Majesty's Government. He has that power, and he alone. To him has been entrusted the responsibility of his great office. It is the most difficult, and I believe the most thankless task which any man can undertake, but he has accepted the office, and he, I feel sure, will not shirk the responsibility which has been placed on his shoulders. During the autumn these large questions of public policy, which will determine the expenditure in 1922–23, will arise for settlement. It is for him to say quite definitely, not shielding himself behind the decision of any outside committee, if this country is so poor that we must curtail our foreign policy, and reduce our commitments abroad. Once we have reduced our commitments abroad, then we can appeal with more confidence to the electors at home to discard their desire for social reform. That is the appeal I put to the Chancellor of the Exchequer, in no party spirit, and in no desire to score any debating point. I realise to the full the difficulty of the task, having expended some of my energies in days gone by on that subject. When it is known that the. resignation of the Chancellor of the Exchequer is open and will be accepted on big questions of policy involving large sums of public money, then, and not till then, will the cause of public economy be carried to a successful issue.

The speech to which we have just listened will, I am sure, have made the colleagues of the hon. and gallant Gentleman feel that he has justified the confidence they have shown in him in asking him to sit on the Front Opposition Bench. They were not, however, all in the House to hear him make his speech.

I except the hon. Member for Consett (Mr. A. Williams), who is almost the only Liberal left in the House. Unfortunately, when these attacks are made by the regular Opposition they deliver most excellent speeches, but they seldom put their words into operation or by any chance remain to listen to the reply of the Government. The right hon. Gentleman the Member for Peebles (Sir D. Maclean), who has just come in, made a most excellent speech at the commencement of this Debate. Even though we may not agree with his views, we recognise the genuine attempt he has made to bring home to the Government, in a perfectly proper fashion, the mistakes they have made in administration. He complained that it was a very difficult task. It is no business of mine, speaking from the Government side of the House, to suggest how the" Wee Free" Opposition may conduct its business. The right hon. Gentleman might truly reply to me," Remove the beam from your own eye before you remove the mote from your neighbour's eye," and refer to the position of the Coalition. In my experience of the House, however, I have never seen an Opposition which supported itself, so to speak, less than does the regular Opposition opposite.

When my right hon. Friend speaks of the difficulties which they have in Opposition, I would remind him that his difficulties are no greater than those which we had to face when we were returned—speaking at this length of time—as a small and discredited and very disunited Tory party in 1906. I am sure we made a better show against the then Government than the present Opposition does against the present Government.

I am not suggesting for a moment that the Noble Lord is not justified in making the statement he has made. I only wish to point out to him that the Liberal party came back here to the number of about 32. The Labour party is about 60, while the Conservative returned at the election of 1906 was about 120 or 150 strong. There was then a practically full Front Opposition Bench. All of its leaders, with the exception of the right hon. Gentleman the late leader of the Conservative party, were there, and he rejoined their ranks within certainly six weeks of the commencement of Parliament.

This seems a little remote from the subject under discussion.

I will leave the subject by remarking that I was the last person to say anything that seemed in any way offensive to my right hon. Friend, or to the hon. Gentleman who preceded him. I was really only taking up the point he made, that it is difficult to bring home to the Government what I think is the real enormity of their financial operations. It is exceedingly difficult, and no doubt it has enabled the Government, with its enormous majority, to commit what I can only describe as Parliamentary atrocities, and by which, if they were not stopped but were to continue indefinitely, the position of this House would be very seriously affected. I do not think the Government will be stopped in this Parliament, but they will be later on. I am convinced that in another House of Commons, where the Government does not have such a large majority, that their present conduct of business and attitude towards financial questions will be impossible. I believe the Government had complete confidence in the value to the cause of economy of the formation of this Committee. I am sure their surprise at the mingled indignation and ridicule with which their proposals were received was perfectly genuine.

I think that when they announced to the House that they had decided a month ago that the Committee was going to be formed, the Government and the Leader of the House, as well as the Chancellor of the Exchequer, believed that they were not only doing a thing which was in the interests of the country, but that they were taking a practical step of no mean advantage to them, and that they were going to take the wind out of the sails of the Anti-Waste party opposite. And when the proposal was received with indignation and ridicle by the whole House of Commons, with the one exception of the hon. Member for West Edinburgh (Mr. Jameson), who is the most enthusiastic supporter of the Government—I do not grudge them the support of the hon. Gentleman; in these hard times for a Coalition Government it is advisable to get someone to agree with them, if they do not get many—the Government were genuinely surprised at the effect which the formation of this Committee had in the House and in the country, and in the Press. One of the reasons why they were surprised is because I believe that this Government, in a degree altogether exceptional even in a Government which has been in office for nearly three years, is out of touch, not only with opinion in the country, but with opinion in this House as well.

One of the defects of what I can only describe as the present semi presidential Government in this country—for we have not got Cabinet responsibility; we have a semi presidential system with practically only one Minister, the Prime Minister, and I do not think that anyone in this country should exercise the functions of the President of the United States—is that it is impossible for the Government to keep in touch with opinion in this House. They may reasonably reply," What is the need for keeping in touch with opinion in this House? We have got such an enormous majority that it is unnecessary." Even this afternoon, when the Prime Minister was speaking, the House was far less crowded than on many occasions when other Prime Ministers were speaking. The reason is obvious. The enormous majority is ready to crowd in from all parts of the House to vote as required, and there is no need for the Government to keep in touch with the opinion of the House of Commons, and the present Government, having no effective Opposition, have reached a point when they believe that opinion in this House ha? become insensitive, and takes no notice of the effect upon its position of the formation of a Committee of this character.

The Government do not realise the effect upon the prestige of this House outside of the formation of a Committee of this kind. They leave the House out of account. This House, like every other human institution, is very sensitive to ridicule. The House realises that everybody is saying," Here is a pretty House of Commons. It is so incompetent that it has now to settle questions of finance by an outside Committee composed of Noble Lords from the other place and business men who have been appointed to do this work." Every Member would be ridiculed by his constituents on this point. The Government do not realise the effect of their action on the prestige of the House and the country. My hon. and learned Friend the Member for Central Bristol (Mr. Inskip) has laid down most admirably what the functions of this House should be in matters of finance and administration, and I do not wish to add to what he said on this point. When we criticise the policy of finance, not only of the Government as a whole, but of individual Ministers, for which the Government and those Ministers are responsible, the Chancellor of the Exchequer may reply," The Estimates are the Estimates of the Government. They are going to be responsible even when this Committee is set up. It is only going to be an advisory Committee." The reply again to that is that some suggestion may be made as to financial policy. It need not necessarily be for additional expenditure. It may. be that money saved in one direction should be spent in another, and the right hon. Gentleman may say," No. The House of Commons deliberately set up a Committee to advise it in matters of finance."

I assure my Noble Friend that that is a complete misinterpretation.

That is a very important admission. Then the right hon. Gentleman will not proceed to tell us, when we criticise some item of expenditure, that it is impossible for the Government to alter their policy on the point, because the Committee have advised otherwise, but I understand that in answer to a question he said that this Committee was not going to advise in matters of policy, that the Government were still going to be responsible for policy and that the Committee was only going to advise on matters of actual expenditure. The right hon. Gen- tleman knows that when it comes to the discussion of Estimates in this House it is impossible to disentangle what is a pure question of policy, and what is a pure question of administration, and the fact remains that we shall be met when we make an accusation against the Government with the reply," It is your own Committee. The House of Commons has set it up."

I am very sorry to arrest the uninterrupted flow of my Noble Friend's speech, but he has repeated for the second time the same misstatement. The Government are not asking the House to set up this Committee at all. It is not for a moment a House of Commons Committee.

Then this House is not going to be responsible for this Committee. The Government solely are going to be responsible. That is the point. The Government have appointed this Committee to advise them on Estimates. Well, I maintain my point that when we criticise a particular Estimate—it may be on the Estimates for the Navy or the Ministry of Labour, or anything else—we may be met by the Government with the reply," This Business Committee has seen this Estimate and agreed to it," and they will refuse to make any further explanation of it. The appointment of this Committee takes away from this House the right which this House always had of making Ministers directly responsible not only for policy, but for the manner in which that policy is carried out. Although it is said that they are not going directly to advise on policy, and that they are only going to see how the Estimates may be cut down or altered, the fact remains that it is impossible to take Estimates apart from policy. The argument used by the hon. Member for West Edinburgh is,"Look at the great value of these business men's advice." It would not be fair to other hon. Gentlemen who wish to speak, to develop that argument, but I will make these observations regarding the position of so-called business men in this House and in the Government and the influence of such men on departmental and Government expenditure.

The experience of the last five years has proved that business men in politics, without previous departmental training, are not always an unmixed success. I do not attack the well known views on this subject of the hon. Member for South Hackney (Mr. Bottomley). I read with great interest his statements on the value of a business Government. But the positions of the head of a great business and the head of a Government Department or a man advising a Department are not at all similar. The first object in business is to make money. I am sure that no one will quarrel with the statement that in order to do so a man very frequently has to spend a great deal of money in preliminary operations. That is the last thing that you want the head of a Department to do. In this period of our history, with the financial stringency with which we are faced, the first duty of every head of a Department is not to spend money, but to save it, and his functions are completely different from those of the head of a great business. I put that forward as a suggestion. No business man would run his business where his own money was at stake as some business men ran the nation's business where the taxpayers' money was at stake during the War. Some of the most bloated Estimates with which we have had to deal in this House were the direct result of putting so-called business men, with no political or departmental training, at the head of the Departments.

Put aside that argument and admit that everything said by the hon. Member for South Hackney in regard to business men in Government may be true. Will anyone claim that men with private business interests of such enormous magnitude as the interests of the gentlemen appointed to this Committee—I am told by an hon. Friend that some of them are directors of as many as twelve companies—can find time really to look into this question of expenditure? In itself the thing is absurd. With one or two exceptions, Lord Inchcape has probably greater shipping interests than any man in this country, and one might almost say than any man in the world. How can he give attention to this difficult and intricate subject? The thing will be a farce. Of course, he will not have time. I recommend any hon. Member who is in doubt as to whether he should support this Business Committee to take the Directory of Directors and see the active work that these gentlemen are supposed to perform in addition to their duty of advising the Government. It is not to be a purely voluntary organisation. It is true that the members of the Committee are not to be paid, but the Government have admitted that there is to be a sort of of Department, a sort of Secretariat, like that set up by the Prime Minister during the War. I suppose it will eventually be large enough to require the White City or Olympia to house it. I know the Chancellor of the Exchequer said that this Secretariat would not cost any more money because the officials required would be taken from other Departments. I have heard that statement before. We all remember Departments and Sub Departments which were not to cost any more money, but they always spent more money. There will be more clerks and more typists engaged and offices of some sort will be required.

Finally, I come to what I describe as the ridiculous part of the setting up of this Committee. I refer to the choice of chairman. I have noticed on more than one occasion that this Government has done things which might best be described as of a very theatrical kind. Very frequently the Prime Minister's actions are of a theatrical nature, and the Members of his Government are not averse from that. In fact, I think they are the first Government to be photographed as a body for the cinema. Operators were sent to Downing Street for the purpose. As the Government have a theatrical sense, I am not surprised at their choice of a chairman of the Committee. The whole thing reminds me of a revue. The Prime Minister comes on to the stage singing a popular song, such as" I've been waiting for someone like you," and then the right hon. Gentleman pirouettes from the wings and sings," I'm for ever blowing bubbles." He has accepted the chairmanship of this Committee. The whole thing is perfectly fantastic.

Here is a Minister responsible for having created the most costly of all the new Departments, the work of which many of us believe might have been given to the Board of Trade. The right hon. Gentleman has brought in the Railways Bill, and I should have thought it would have required the whole of his time to see it put into operation. I have never heard of a Minister bringing in any great new reform and immediately vacating office. Under most former Governments, when a Minister brought in a Bill of that magnitude he stayed in office until the Bill was in operation, unless, of course, he had failed in his work. But the right hon. Gentleman in this case is made chairman of this new Committee. I do not wish to refer, except briefly, to what I admit is a difficult and delicate subject. In order to be prepared for the possible reply to my statements, let me say that I make no attack on the personal honour or anything else of the Minister of Transport, though I disagree with his policy. The nation has got good work out of him, but in one way or another, as a result of an arrangement which the Government accepted, there has been paid to the right hon. Gentleman, perfectly legitimately, a sum of between £70,000 and £80,000 of the taxpayers' money. That has been the cost to the nation of the services of the right hon. Gentleman. It has been perfectly legitimate, and no doubt the country has got perfectly good value. But surely is shows a tremendous lack of proportion—I was going to say lack of propriety—to make that Gentleman chairman of a Committee which is to inquire into Government expenditure. No doubt one of the duties of this Committee will be to overhaul salaries in Whitehall. No one wishes to see in this country an underpaid Civil Service. There are ignorant people who suggest that an educated man of high qualifications, who has passed a severe examination, in receiving a salary of £1,000 or £1,200 a year in Whitehall, is being overpaid. That is a common complaint made by some critics of our civil servants. I do not think such a man is being overpaid at all. I know it is the case, that there are members of the Civil Service occupying comparatively senior positions who, as a result of the cost of living, find it very difficult to educate their sons as they themselves were educated. I have always thought that, so far from cutting down the salaries of civil servants, what you want to do is to reduce their number. You want to have a small, highly efficient, and well paid Civil Service, similar to that which we had before the War. Above all, you want to stop the habit which this Government has to some extent inherited from its predecessor, the Liberal Government, of bringing into the Civil Service all sorts of people from outside—sometimes labour organisers.

I do not disagree with a few Labour organisers being brought in, but I am sure the hon. Member will be fair enough to admit that a man who has entered the Civil Service as the result of passing an examination, should have a prior claim to the higher offices. That, after all, is only good trade unionism. He would have every reason to object in his own union, if people were brought in from outside to occupy the higher positions. What will be the position of the Minister of Transport as Chairman of this Committee? It will, apparently, be part of the duties of the Committee to consider salaries paid to civil servants, and you may have cases coming before the Committee of men in Whitehall of the type to which I have referred—educated men of a high standard of fitness for their work, who are pinched by the cost of living. The right hon. Gentleman may say that such a man's salary must be cut down, say from £1,400 to £1,200. Why, the interest on the £50,000 alone would be larger than the whole salary paid to some of these men, filling responsible posts in Whitehall. In these circumstances, the Government has shown a lack of propriety, as well of proportion, in appointing the right hon. Gentleman to the post. We have had a lot of talk as to what suggestions are being made by 10.0 P.M. those who, as we are told, are always" crying out about extravagance." I will tell the hon. Member who asked that question and also, if I may respectfully do so, the Chancellor of the Exchequer, what I believe to be the desire not only of the overwhelming number of Members of this House, but the overwhelming number of the public outside. We ask for proper Cabinet responsibility to the Sovereign, and to both Houses of Parliament.

Cabinet responsibility to the country, through both Houses of Parliament. We always had that Cabinet responsibility, up to a short time ago, in the Government of this country. The Liberal Government did a great deal to affect that responsibility, but not as much as the present Government has done. I am prepared to say we had that responsibility up to the year 1906. I never heard anyone suggesting that in the Parliament, say, of 1900, there was any lack of proper Cabinet responsibility. What is the position today however? We have, as I already said, a sort of semi Presidential Government in this country. In other words, it is not what the Government decides, but what the Prime Minister says, that goes. We could not have a better example of that than the way in which Ministers allow a Bill to be brought forward in one Session, and support it by all the means at their disposal as the one Bill necessary to save the country, and then when it is withdrawn in the next Session, they do not need to resign. They do not feel it necessary to resign, because they never admit such a thing as Cabinet responsibility. They are merely the nominees under the semi Presidential system of Government. I regret that the Leader of the House is not present tonight, because he happens to be also the leader of that party, to which a good many of us were once proud to belong. Had he been here, I should have put some questions to him. I should have asked him what is the position of that party today, who is its proper accredited leader, and whether the Unionist Members of the Government are pleased with the electoral condition of this country which they see at their very doors?

It is all very well for the hon. Member to laugh. Let me tell him, if that great and historic party was in position in this country, he and his friends might have every cause to complain. The fact it is not in position enables many of them to come to this House—

Let me say to the right hon. Gentleman that many of us are rapidly coming to think that, whatever may be the blessings of having the present Prime Minister as the head of a semi presidential system in this country, the existence of the institutions of this country and of the Parliamentary Constitution, and the position of this House, are matters of more importance than the continuance of such a system Those of us who are not ashamed still to avow ourselves as believers in the principles we have always put forward in this House think that too much may be sacrificed to what is known as the principle of unity, when you have not got unity in fact. You cannot have unity in a Government which is doing a thing one day and altering it the next. Too much harm may be done to the institutions of the country, and hon. Members opposite may jeer if they like, but the great Tory party has been responsible for more democratic legislation in this country than any other party in existence.

I have listened to the very violent attack upon business men made by the Noble Lord who has just spoken, and I have been turning the matter over in my mind. Supposing I had to choose between the present Ministry and the hon Member, with those who sit beside him, as to which body should govern the country, I think I should have no hesitation in accepting the present Ministry. It is not that I love them, nor that I greatly admire all that they do, because I recognise that they are not business men. They are principally lawyers, and I am not sure that this country has anything to be really gratified with, in the success of government by lawyers, during the War and since the War. I wish to refer to some remarks made by the right hon. Member for Peebles (Sir D. Maclean). He said that the House should control its own expenditure. That is a very nice sentiment, but will the right hon. Gentleman tell us how it is to be carried into effect. I have been a Member of this House, off and on, for the last 20 years, and I have never know a period when Parliament controlled its own expenditure. I remember the 1900–1906 Parliament and the 1908–1910 Parliament, when we used to perambulate through the Lobbies just as we do now, voting hundreds of millions in a very short space of time without a word of criticism. We had no control over our expenditure then, and we have no control now. We have some twenty or twenty two days allotted for the consideration of the Estimates, but when the expenditure of this country was about £200,000,000, we had twenty days. Now, when it is about £1,000,000,000, we have twenty-two days and how on earth are to control that expenditure I do not know. Therefore, as a business man, and I am not ashamed that I am a business man, I welcome this Committee of business men, and I believe they will tackle the job much better than will the Ministers. They will get information from the civil servants that the Ministers will never get. We all know, and we have heard it over and over again when a Minister is appointed, that practically he is ruled by the permanent officials. It is always so, and it always will be, but a Business Committee may step in and say," We are not going to accept everything the permanent officials tell us; we want to know the facts." Therefore, I welcome, as a business man, the appointment of this Committee, and while I must confess I would rather someone else should have been the chairman, yet I venture to say the Minister of Transport will make a very efficient chairman. He has been behind the scenes; and he will know how to guide this Committee.

I want this House to remember that at the present time the finances of the country are in a very serious condition. They are pressing very hardly on the business men of this country and on the manufacturers. We cannot bear the burden much longer. It is almost unbearable now. Our expenditure at the present time is enormous. We have a National Debt of £7,800,000,000, and that bears an interest every year of £360,000,000, and then we are told there is an annual interest upon the debt to the United States, which will become due probably during the current year, of £40,000,000. Those are stupendous figures, and they can only be met by taxation. Taxation has to be paid out of profits, and how are the business men in the state of affairs which exists at the present time going to make those profits? Many works are idle, and some works that have been formed during the past two years have never struck a hammer and are lying idle and practically derelict, and yet we are called upon by the leaders of Labour opposite to be continually giving further doles for unemployment and to pay men full rates of wages whether they work or not. Where is the money to come from? Business men cannot find it, and manufacturers cannot find it. An hon. Member here tonight made one true remark when he said that business men went into business to make money. Yes, they do, and he never said a truer word. They do not go into business from philanthropic motives; they go into business to make money, and unless they make money they do not carry on the manufactures of the country. There was never a greater fallacy than to believe that all manufacturers and the heads of our great industries are capitalists. They are not. What is done is, when they think there is some scheme that we can carry out profitably, we call in our friends and ask them to supply the capital. The first thing they say is," What return are we going to get out of it?" If we say 5 percent., or 6 percent., or 7 percent., they say," That is no use; the Government will give us that, and we can get 8 or 9 percent, for preference shares in well established companies." What chance is there of any new undertakings being promoted it the present time? It is very significant that since the War there has hardly been a prospectus issued of any new industries. All that have been issued have been prospectuses calling for more capital with which to pay the debts and the losses of the existing industries, and there have been very few new undertakings. Therefore I think business men generally will welcome this proposal that a committee of business men should inquire into this most important subject.

We are told that the Anti Waste candidates are contesting seats within a stone's throw of where we are at the present time, backed up by the newspapers who give photographs of clerks going into a restaurant to get their lunch, and then put at the botton of the page," This is why your Income Tax stands at 6s. in the pound." There never was a greater fallacy—absolute twaddle, I call it—to talk in this way. Why our Income Tax is 6s. in the pound is because we have fought a great war and won that war, and to win that war we had to make great sacrifices. Is there any business man who thinks we are going to get over the results of that great war in a year, or two years, or three years? I want to say a word to some hon. Members opposite, these Anti Waste men. I want to ask them this. [HON. MEMBERS: "Where are they?"] They condemn the bonuses that have been given to Government clerks, but I want to ask any business man in this House, Will he tell us whether or not he has given bonuses during the War and since the War to his clerks and staff? I venture to say there is not one who will rise and say he has not done so. Then I want to ask them this. Is there a single business man who has withdrawn those bonuses since the termination of the War? We would like to do so, but we have not the courage, as these men, we know, are hard put to it to live at the present time, with the existing high prices of every necessary of life, and the Government is, of course, in the same position. If you throw these men out you add to the ranks of the unemployed. The Government must try to get rid gradually of the bonuses, but it is nonsense for the Anti Waste candidates to tell us that that is the reason, because a few men have got an extra bonus, why our Income Tax is 6s. in the pound. It is no such thing.

We are told that this Committee is not to inquire into policy, but into the expenditure of the country. The expenditure, however, is directly due to the policy of the country. There are none more responsible for that policy than hon. and right hon. Members sitting opposite, who voted for the unemployment dole, and for the Ministry of Transport; in Committee, whenever there was any proposal to spend more money in connection with that Ministry, every Member of the Labour party supported it. It is the policy of the Government, and the backing of it which they have received from hon. Members opposite, that has caused our Income Tax to be 6s. in the £. We want if alter our policy, to free industry from all control and all interference. Leave us to fight our own battles, and we will fight them successfully if you give us a free hand. But so long as you hamper us, so long as the dead hand of control is held over us, we cannot carry on our business successfully. We have got an up hill fight, but we are willing to enter on that fight to win, and we will win if you leave us alone. I do hope the Chancellor of the Exchequer will stick to his guns, and insist upon this Committee being a Committee of business men, and not a Committee of Members of this House. Sneers have been raised at some of these Ministers, but who did better work during the War than Lord Inchcape and Sir Joseph Maclay, who was one of the finest Ministers we ever had. They did efficient work them, and they will do efficient work on this Committee. Therefore, I hope the right hon. Gentleman will persist, notwithstanding the taunts of my hon. Friends on the back benches. Their day will come, but it has not come yet.

Our day happened to come in the. War, when Lord Inchcape and Sir Joseph Maclay were controlling Departments.

I have no doubt they have shown very great zeal, I am sure they have a great future, and I wish them every success; but, at the same time, it requires business men such as are proposed to unravel all the intricacies of our expenditure at the present time, and I think they will do really good work which will greatly benefit our country.

I do not think I can complain that this Debate has been lacking in either interest or variety. There have been three classes of criticism. First of all, we have had the ordinary type of criticism, which you get from a party in Opposition, and I am not sure that I was so impressed with that criticism as I ought to have been, because there is always a certain amount of discount to be taken from the comments of those whose chief desire is to supplant the Government whom they criticise. There have also been criticisms from what is known as the Anti waste party. I see that my hon. Friend the Member for South Hackney—

The only fear of the Anti waste party is that their thunder is going to be stolen, and that forms their main objection to the appointment of this Committee. Then, in a totally different category, are the criticisms of my hon. Friends behind me. They are much more racy, and I think they are, on the whole, much more helpful. The Noble Lord the Member for Horsham (Earl Winterton), who made the chief speech from the Back Bench below the Gangway was principally concerned with the lack of what he called Cabinet authority. I gathered that his main solution for the stringency of our finances at the present time is that Cabinet authority should be restored, but he offered no reason for thinking that Cabinet authority had been lost except this one instance—that occasionally he and some of his Friends find it necessary to dissent from the conclusions at which the Cabinet arrives. Perhaps that is not unnatural, and if we had the benefit of his advice in that circle no doubt that difficulty could be cured. But there is one thing I do appreciate about the criticism that comes from those benches, and it is that hon. Members behind me are as anxious to bring about economy and keep down expenditure as the Government. I hope, therefore, they are as anxious to support us in adopting measures to reach economy.

After all, the burden of the present time of achieving a decreased expenditure in this country falls upon the shoulders of His Majesty's Ministers, and chiefly upon myself. Is it likely, with that burden of responsibility upon me, that I am going to select a method, which in my view at least, is as ridiculous and absurd as the Noble Lord thinks it is? It is perfectly obvious that I am trying to find means by which I can achieve economy. After all, I am the person responsible. Failure of the method I take will be my failure. If this Committee does not achieve the object that it sets out to achieve, then I am the person who will be blamed. Accordingly, I am sure the House will give me credit for believing that the method I am now advocating is the most certain of success. I can assure the House I should not have proposed this course if I had not had the fullest assurance and conviction that it is the best method that can be devised for bringing about the economies we all desire to see effected.

What today is the position of our finances? There were certain remarks made from the Opposition Benches as to the position in which we find ourselves, and some figures were given from which inferences were drawn which I cannot regard as justified. Recently I had the opportunity of putting before the House the condition of our finances. Since then there has been very little further information which would elucidate the position. If the House will bear with me, I should just like to give the shortest possible sketch of how our finances stand. When the Budget was presented we esti- mated that the surplus on ordinary and extraordinary expenditure together would be £176,000,000. That surplus, however, was subject to deduction. It was pointed out on the Budget that there were various expenditures which would modify and reduce that surplus. The Lord Privy Seal, in introducing the Budget, explained that we estimated that there would be £80,000,000 available out of that surplus for the reduction of debt. What has actually happened is this: Supplementary Estimates have been presented to the House for £91,000,000 There must be added to that figure £7,000,000, the cost of the Defence Forces which were embodied during the course of the coal stoppage, making together £98,000,000. That leaves out of the £176,000,000 available surplus £78,000,000 irstead of the £80,000,000 for the repayment of debt. That is subject to the proviso that the revenue for which we estimated would be realised

What about the revenue? So far as the first 4½ months of this year are concerned, the ordinary items of revenue have shown a remarkable steadiness. We have collected more Income Tax this year than we collected in the same period last year, although, in point of fact, our estimate for the present year is £200,000,000 less than the estimated revenue of last year. Excise and Customs have shown remarkable stability. The only items upon which there has been any serious deficiency at all are the Miscellaneous Receipts, which are chiefly concerned with the sales of the Disposal Board and the Excess Profits Duty. With regard to Miscellaneous Receipts, I do not think that we need apprehend any very serious deficit on the whole year, because those receipts are not regular in character, but depend upon the times of sales and the size and importance of those sales; and therefore while the receipts up to now have not been equal to last year, they do not give great cause for apprehension. We shall not receive as much from the Excess Profits Duty as we estimated. These two things together would not be sufficient in my estimation to wipe out entirely the figure of £78,000,000 which would otherwise be available for the reduction of debt.

There is one further matter which I ought to mention which is of a reassuring character. There will be a sum obtained for our armies of occupation out of Germany's reparation payments in this financial year of a substantial amount. I do not propose to go into the question of the exact figure at the present time. I hope the House will forgive me for not doing so, because, although we arrived at an arrangement last week in Paris—or rather I should say the Finance Ministers of the various countries arrived at an arrangement—the Finance Minister of France signed the document subject to confirmation' by the French Cabinet, and, as that has not yet been received in London, I am not in a position to go into the matter in full detail, but the House may take it from me that, whatever happens, there will be what I may fairly describe as a very substantial sum available out of Germany's reparation payments to help our revenue.

In gold. I hope hon. Members will not press me further on this point. Accordingly I do not look at the current year's position in the gloomy way in which some of my hon. Friends are apt to do. It is when I turn to next year I find the real difficulty. It is perfectly certain we shall not be able to realise next year anything like the revenue that we shall get this year. There are many circumstances to account for that. There will not be the same revenue from the Excess Profits Duty. There will not be so much obtained from miscellaneous receipts, because gradually the stores at the disposal of the Board working under the Treasury will be depleted and there will be less money coming from that source. We cannot possibly expect to obtain so much from Income. Tax next year. The House will understand that, paying Income Tax as we do on a three year average, the depression of the present year will have a serious effect on next year's receipts. Accordingly, looking at the position next year as closely as we can estimate it, it is apparent that, in order to make the accounts balance, we shall have to reduce our expenditure by at least £130,000,000 as compared with this year.

I wish the House to understand how big a problem that is. We are so much accustomed to talk in large figures that we sometimes do not realise all that they mean. In the particular circumstances in which we are placed, this is a far harder reduction to get than the reductions we have obtained in the last three years. In the year immediately following the War we reduced the expenditure by £1,200,000,000, in the next year by £680,000,000 and in the present year by £275,000,000. The very fact that we have been able to make those reductions in those years makes the possible reduction next year harder Co realise. You have been cutting oft the excrescences; you are getting much nearer the bone, and with the beet will in the world, to obtain the reduction I have indicated is the most difficult thing possible. My right hon. Friend asked as to the result of the replies to the Treasury Circular. I am prepared to tell him as much as I know myself. At the present moment from the answers received one may estimate a reduction of at least £50,000,000 but as some of the Departments have not yet made a complete return, the probability is that we shall achieve a reduction of £70,000,000. That still leaves us a further £60,000,000 to be deducted from the services at some point or other. My hon. Friend the Member for Wood Green (Mr. G. Locker Lampson) suggests that it is as simple as possible to reduce Government Departments and cut down expenditure. All you have to do, he says, is to make up your mind what your revenue is to be and to ration the Departments accordingly. But upon what principle are you going to ration the Departments, unless by investigation of what is to happen in each Department? If you do not do that, you may be cutting down one Department whose work is absolutely essential to the carrying on of the nation, and in the case of another you may be leaving it with more than its necessities require. Accordingly you cannot do it in that way: you cannot thus secure the economy you desire everywhere. Let me remind my hon. Friend of his own experience. There are very varying views about economy, even among the Anti waste party. You find extraordinary instances of Votes in this House involving very large expenditure which happens to be popular at the moment, and the Anti waste party crowds into the Lobby in favour of it. There was the Vote for Old Age Pensions in the course of the present Session. My hon. Friend the Member for Wood Green did not go into the Lobby against it, and so it is with a great many of the expenditures which come before this House.

I had an interview with the then Chancellor of the Exchequer on the subject, and pointed out that I had to be away, but that if I had been able to be present, I should have voted against it.

Well, it is a very significant episode when one of the most important expenditures is being discussed in the House, that those who are most against expenditure should not be there to see that the money is not spent. But I will let that pass.

No, I did not say so. Let me come to another point. My hon. Friend complained that the Government sent a special officer to the Ministry of Transport at a salary of £5,000 a year, whom they brought from America, as he said, for the purpose. My hon. Friend has got his history a little wrong The gentleman in question was brought from America during the War to the Ministry of Munitions, at a time when, I think, the Prime Minister was Minister of Munitions, and there is no question that there is scarcely an individual in this country to whom can be ascribed a greater saving of expenditure.

I do not want to interrupt, but I.have here the speech made by the Minister of Transport in this House, in which he said that Sir Hardman Lever was in America, and was coming over here for a limited time to be the finance member representing the Treasury in the office of the Ministry of Ways and Communications, as a watchdog in residence.

Exactly. He was in America at the time when war broke out, and he was brought back from America to the Ministry of Munitions. He then went to America at the request of the Government, and came back again in order to take up this position in the Ministry of Transport. That is the history of the matter. He was a man whose experience and value to the country had been tried, and in the Ministry of Transport he acted, not merely as a person who was to see that the Ministry was not conducted extravagantly, but also in connection with the railway accounts, in a capacity which saved us, undoubtedly, very large sums of money. I would venture to ask the House to keep this in mind when they look at his salary, and complain of the payment of a salary of £5,000 a year to a man who was sacrificing three times as much to take the position. I would beg the House to remember that you will never get the economy that is desired unless you employ people who have the skill and capacity to achieve it. So far from that £5,000 a year, of which my hon. Friend complained, being an instance of extravagance, it was one of the best examples of saving and economy that he could have used.

I wish now to bring the House to the question of how the problem which I have described is to be solved. Many hon. Members have said tonight that this is the task of the Chancellor of the Exchequer, that he is the person upon whom lies the burden of keeping down expenditure, and that he and the Treasury officials must see that the Departments are properly conducted and at the least possible cost to the country. I agree to that proposition, but I would beg the House to consider the circumstances of the present day. We are no longer in the conditions in which we were before the War. The business of the Chancellor of the Exchequer today is enormously greater than that which any Chancellor of the Exchequer had to conduct before the War. Just imagine what the position is. I do not want for a moment to exaggerate the amount of work that one has to do in that great office, nor does one grudge the whole of one's time in the doing of it, but I beg the House to recognise the kind of thing that it is. It is not merely a question of the ordinary routine duties of the Chancellor of the Exchequer. These are bigger today than ever they were, and for this reason. The system of taxation is not only greater but far more complicated, and, therefore, there are immensely more questions that come up in the ordinary routine of every day than had to be faced before the War. In addition to that, there are all the after War matters to be dealt with. Look at the number of contracts which still have to be supervised, raising questions which the Chancellor of the Exchequer has to decide, and which only the Minister himself can determine. Look at the number of arrangements we have with the Dominions, which have all to be elucidated, at the present time. Look, for example, at the great questions which arise with India with regard to the expenditure in Mesopotamia during the War, and how it is to be distributed—questions which in the end can only be solved by the Chancellor of the Exchequer. Then there is the question of your dealings with your Allies. There is all the matter of the Reparations to be decided. There are constant questions arising which are taking up all his time from day to day. Without, I hope, trying to ask the House for any mercy in this matter, I beg them to believe that no single man can undertake all these duties and at the same time perform the great task that lies before us of making the necessary investigations into the expenditure of the country. If it were possible to do it otherwise I should have been perfectly ready to undertake the task, but I could not assure the House that I should have either the strength or the capacity to carry both duties to a successful conclusion. There is not the time. After all, there are only a certain number of hours in every day, and this task of reducing expenditure is urgent.

I say to the House that one requires help in such a matter. Has it been usual to deny help in the way of advice to Chancellors of the Exchequer in the past, or indeed to any Minister? Has it not been the commonest thing in the world for a Minister to summon to his aid a committee which can advise him on any particular matter? Look at the number of committees which have been set up in recent years for just this kind of purpose. I asked for the names of some which have sat quite recently. There was a business committee which sat on the question of capital issues, of which the right hon. Baronet the Member for the City of London (Sir F. Banbury) was a member. There was another committee that sat on the question of exchange and currencies to advise the Chancellor of the Exchequer. There was a third committee that sat upon the question of the Civil Service salaries. It is said the Chancellor of the Exchequer is the man who must look after the Civil Service and see that it is not paid improper salaries, but only a year and a half ago there was set up by the Chancellor of the Exchequer, with the full knowledge of this House, a committee composed of the right hon. Gentleman the Member for Paisley (Mr. Asquith) and two business men to report to the Chancellor of the Exchequer upon what they thought were proper salaries for the higher branches of the Civil Service. I never heard that there was the slightest complaint in the House at the time that Committee was set up, nor have I heard any complain that it was improper, when that Report was produced to the Government, that the Government should take the responsibility of putting its recommendations into operation. But if that be so, with regard to these committees, what is the criticism of this Committee?

There is no derogation from the authority of the House. The House will still have the fullest possible control of our decision because all the Committee can do will be to recommend to the Chancellor of the Exchequer. Something is said about the personnel of the Committee—first of all that it is a Business Committee. I should have thought it was important that we should appoint a Business Committee in these circumstances. What is the most frequent criticism that you see in the Press with regard to the Civil Service? The most persistent criticism is that if the Civil Service conducted its business as business men do it could save large sums of money. This will give the business men an opportunity of advising the Civil Service upon that matter and pointing out ways in which the organisation can be improved. I saw a speech the other day by Sir Joseph Maclay, one of the members of the Committee, in which he said there were many ways, from his experience as a Departmental Minister, in which you could save money upon Civil Service organisation. He will have a chance to show how it can be done, and I hope we shall get many recommendations from the Committee which will be of use upon that matter.

Take the question of policy. Nobody has suggested that this Committee is going to control the policy, either of this Government or of this House, What is it going to do? This is very important, because it has been so much misrepresented in this Debate. Questions of policy, of course, must remain for the final decision of the Government. If they did not so remain you would be handing over the Government to somebody else. The Government of the country must remain responsible for policy. You would truly be setting up something unconstitutional if you set up a Committee to decide policy. The Committee can, however, serve a very useful function in connection with policy. They can show precisely what a policy in a particular direction is costing. That subject wants working out. It would be in their power to show that particular modifications would have particular results in cost. That, undoubtedly, is a function which they can very usefully perform.

I come now to the personnel of the Committee. So far as I can gather, there is only one member of the Committee against whom criticism has really been directed, and that has been the chairman. Some of the criticism with regard to him was very unfair. I think it is putting a lenient view upon it to suggest that it arises out of real ignorance of the work which the Minister of Transport has performed in his Ministry. Reference has been made to the cost of the Ministry of Transport. I ask the House to remember the work that the Ministry of Transport has done.

The Ministry of Transport had to deal with matters which were exceedingly technical. Nobody doubts that. The Ministry had to employ a technical staff fitted to perform those duties, and you could only get that staff upon certain terms. No doubt, if you compare the salaries in the Ministry of Transport with those in other Departments, you could say that the Ministry of Transport was more costly, but if you compare, man for man, the salaries of the staff of the Ministry of Transport with the salaries paid to people in similar occupations outside you would not find highly exaggerated salaries at all. I have taken the trouble to make that comparison in many instances, and it is quite surprising how small are the salaries paid to some of the important officials in the Ministry of Transport compared with the salaries of men with whom they had to discuss matters.

What has the Ministry of Transport succeeded in achieving in a short time? It has cost during the two years less than £500,000. It has examined innumerable accounts. [An HON. MEMBER:"Hear, hear!"] One hon. Member says"Hear, hear," rather derisively. He would not say it derisively if he waited until he had heard my statement. The Ministry of Transport has brought back into the Exchequer £6,000,000 from the railways through errors in accounts, and there are many claims of a similar character outstanding.

I am sure that if the hon. Member knew the history of these matters, he would scarcely set that up. as a criticism of the Ministry of Transport.

The right hon. Gentleman knows that up to the end of 1918 the Government made a profit on the arrangement.

I do not know what my right hon. Friend means by" making a profit out of the arrangement"; but I have not the slightest doubt that as a railway magnate he would rather have been dealing with the Board of Trade than with the Ministry of Transport. In point of fact, through the efforts of the Ministry of Transport, the claim which the railway companies made up, to over £200,000,000, was settled at the sum of £51,000,000.

The railway companies never made any claim at all. The right hon. Gentleman knows that perfectly well.

My right hon. Friend really must not give that out as a sug- gestion to the House. I met him himself as one of the deputation of the railway companies which put before me the sum which they said they were entitled to get To say that they did not make any claim—

As the right hon. Gentleman has made that statement, may I say that what took place was this? The railway companies were asked if they would accept a lump sum down. The railway companies then attended before the right hon. Gentleman, and I was one of them. The Government offered us a sum, and we replied," We want something more." [HON. MEMBEKS: "Hear, hear!"] I think that when a person is made an offer—if one of the hon. Members opposite who represents a trade union whose workmen are offered a certain sum—he makes a counter offer. We did not go to the Government and make a claim; we never made any claim at all. When the Government came to us and made us an offer, we stated what we would take.

I think my right hon. Friend will remember that the figures which I have suggested are not in error an to what they said they ought to get.

I do not propose to labour that matter, because there is sitting opposite to me an hon. Member who well remembers the statement of the railway companies which came before him on Lord Colwyn's Commission. To say that no claim was made, by way of representing to the House that the railway companies were not wanting the money and not asking for it, is really entirely misleading. I leave that matter. What I should like to tell the House is that it is very important to get somebody as chairman of this Committee who will give his whole time to the duties of the office. I consider that we are very lucky in being able to obtain the services of a man who is well acquainted with Government offices and will know the way in which to look for the economies that may be made, and who is generous enough to devote his whole time and attention to these duties.

It has been said that in some way or another the authority of Parliament is being undermined in this matter. The authority of Parliament is being no more undermined by this Committee than by any other committee that has ever been set up to advise a Minister. It is in precisely the same position as every other committee, and the functions of Parliament remain the same. I was asked what about the Estimates Committee? See what the Estimates Committee does. Its functions are not to examine all the departmental accounts, nor all the expenditure of the Government, but to examine such departmental accounts as it may see fit to examine. It is impossible to suppose that you are going to get the Estimates Committee to sit right through the autumn of this year. In fact, when Parliament is prorogued, it has no longer any authority to sit. Supposing that even during an Adjournment you asked the Estimates Committee to sit with any chairman who was going to do the whole of the work, to ask it to do so would be to ask more than the Estimates Committee was ever set up to perform. Its functions will remain precisely what they were. It will still be our duty, as a Government, to present the Estimates to Parliament, and to the Estimates Committee for scrutiny. They will examine the Estimates when they come before them, if they choose, and they will report upon them to the House of Commons as they were appointed to do. The functions of the Estimates Committee are in no way abrogated by what the Committee who advise the Chancellor of the Exchequer are going to do. They will advise before the Estimates are prepared. These Estimates will be subject to such scrutiny as the Estimates Committee choose to give them, and so far as Parliament is concerned we are in exactly the same position as we have always been. Parliament ultimately has full control over expenditure. It is true that the Executive takes the initial action, but everyone knows that the Executive depends upon the support of Parliament, and upon the day we forfeit the support of Parliament we shall no longer be able to propose any estimates at all. In those circumstances I find it difficult to believe that much of the criticism directed against this project has really been serious. An old fashion of arguing is to present an impossible proposition in order to knock it down. Many of the critics of this proposal have taken that course tonight, but I hope, now that the matter is understood, that we shall have from the House support in an endeavour which is sincere to effect economy by the best means which we can bring to bear on the situation.

May I appeal to the House to bring the Debate on the Second Reading of this Bill now to a close? We are to take the Third Reading tomorrow. If, as I hope, in the course of Thursday, when we have sent up Bills to another place, there be time available while we are waiting for the. Bills to come back, I shall propose to move the Adjournment of the House, to give the House an opportunity of discussing further questions of general interest such as are raised on the Consolidated Fund Bill. I cannot speak with absolute confidence, but I believe that this may be done, and I appeal to the House now to allow the Second Reading.

It will be taken tomorrow, in accordance with the Standing Orders, at the same time as the Third Reading.

The hon. Gentleman has been long enough in the House to know that it is not in order to move Amendments on the Committeee stage of the Consolidated Fund Bill.

Is it not now in order for a Member to hand in at the Table notice of an Amendment to the Third Reading?

I am sure I am. The right hon. Gentleman has been long enough a Member of this House to know that.

Question," That the Bill be now read a Second time," put, and agreed to.

Bill read a Second time, and committed to a Committee of the Whole House for Tomorrow.—[ Colonel Leslie Wilson. ]

Irish Railways (Settlement of Claims) Bill

Considered in Committee.

[Sir E. CORNWALL in the Chair.]

Clause 1 (Composition of claims under railway agreements) ordered to stand part of the Bill

CLAUSE 2.—(Distribution of money amongst railway companies.)

(2)The said moneys and interest shall be distributed amongst the railway companies to which this Act applies in accordance with such scheme or schemes of allocation as may be agreed between the companies or as failing agreement may be settled from time to time by a tribunal (hereinafter referred to as" the tribunal"), consisting of the Right Hon. Sir David Harrel, G.C.B. (who shall be President), John Mackie, Esq., and Herbert Wilson, Esq., K.C., who shall have regard to the terms of the said agreements and arrangements between the Government and the railway companies in Ireland with respect to compensation:

Provided that—

(i)the said first instalment of two hundred thousand pounds shall, as soon as may be after the first day of October, nineteen hundred and twenty one, be distributed among those companies whose working expenses exceeded their receipts for the period from the first day of January to the fifteenth day of August (both inclusive), nineteen hundred and twenty one, in ratio to the extent to which they are so in excess as shown by the estimates of receipts and expenditure furnished for the purposes of the compensation accounts between the Government and the railway companies; and any payment so made to any railway company shall be treated as a payment on account of the sum ultimately advocated to the company under any such scheme or schemes as aforesaid;

I beg to move, in Subsection (2, i), after the word "companies" ["and the railway companies; and any payment"], to insert the words "adjusted

I do not propose to trouble the House with a somewhat complicated problem, or the manner in which it is proposed by this Amendment to secure some of the minor adjustments which were found to be necessary when the various interests concerned had an opportunity of examining the various details of the Bill. This Amendment has been fully discussed between the various interests concerned, and I think that we have been fortunate enough to convince the Government that it is a proper Amendment, and one which will add to the efficiency of the Bill. It will remove certain anomalies, and render impossible certain injustices which would have occurred had the Bill been passed in the form in which it was presented to the House.

This Amendment has been agreed upon by the various railway companies in Ireland, and, on behalf of the Government, I accept it.

Amendment agreed to.

Clause, as amended, ordered to stand part of the Bill.

Clauses 3 ( Continuance of provisions of agreement as to worked lines ), 4 ( Interpretation ), and 5 ( Short title ) ordered to stand part of the Bill.

Bill reported, with an Amendment; as amended, to be considered To-morrow.

Expiring Laws Continuance Bill

As amended, considered; read the Third time, and passed.

Licensing (No. 2) Bill

Order for Consideration of Lords Amendments read.

Motion made, and Question, "That the Lords Amendments be now considered," put, and agreed to.

Lords Amendments considered accordingly.

CLAUSE 2.—(Permitted hours on Sundays.)

(1)The hours during which intoxicating liquor may be sold or supplied on Sundays, Christmas Day, and Good Friday in any licensed premises or club, for consumption either on or off the premises, shall be five hours, of which not more than two shall be between twelve (noon) and three in the afternoon, and not more than three between six and ten in the evening:

Provided that in Wales and Monmouthshire there shall be no permitted hours for licensed premises on Sundays, or on Christmas Day when it falls on a Sunday.

Lords Amendment:

In Sub-section (1), after the word "be" ["shall be five hours"], insert "as follows, that is to say."

I beg to move, "That this House doth agree with the Lords in the said Amendment."

I propose to invite the House to agree with all the Amendments which have been accepted by the House of Lords. They are in substance, with one exception, drafting Amendments, intended to make the meaning of the Bill even more clear. The exception is the Amendment which extends to Scotland what has been called "the supper Clause." I do not see why we should not extend this permission to our hardy and convivial brethren north of the Tweed. Of course, it is not compulsory. We do not compel them to take late suppers, but if the taking of late suppers is consistent with their habits of plain living and high thinking, there is no reason why this permissive provision should not extend to them.

Question put, and agreed to.

CLAUSE 3.—(Special provision as to extension of permitted hours in the evening in certain premises.)

(2)This Section applies to any licenced premises or clubs if and so long as the licensing justices are satisfied that they are struc- turally adapted and bond fide used for the purpose of habitually providing, for the accommodation of persons frequenting the premises, substantial refreshment, to which the sale and supply of intoxicating liquor is ancillary.

Lords Amendment:

In Sub-section (2), after the word "used" [" bond fide used "], insert "or intended to be used."

Agreed to.

CLAUSE 5.—(Exemptions and saving provisions.)

Nothing in the foregoing provisions of this Part of this Act shall he deemed to prohibit or restrict—

( e ) the sale of intoxicating liquor to a trader for the purposes of his trade, or to a registered club for the purposes of the club; or

Lords Amendment:

In paragraph ( e ) leave out the word "registered."

Agreed to.

CLAUSE 7.—(Conditions as to distribution.)

Provided that the holder of a licence shall not be liable to any penalty under this Section in respect of an offence committed by his servant or agent if he proves that such offence was committed without his knowledge or consent.

Lords Amendment:

At the end of the Clause, insert a new Sub-section—

"(2) Nothing in this Section shall be deemed to prohibit or restrict the sale, supply, distribution, or delivery of intoxicating liquor to a trader for the purposes of his trade, or to a club for the purposes of the club."

Agreed to.

CLAUSE 8.—(Restriction on credit for on-sales.)

Provided always that if the liquor is sold or supplied for consumption with a meal supplied at the same time and is consumed with such meal this provision shall not be deemed to be contravened if the price of the liquor is paid together with the price of such meal.

Lords Amendment:

At the end of the Clause insert a new Sub-section—

"(2) Nothing in this Section shall be deemed to prohibit or restrict the sale or supply of intoxicating liquor to or in any canteen where the sale of intoxicating liquor is carried on under the authority of a Secretary of State, or the Admiralty, or to any authorised mess of officers or non-commissioned officers of His Majesty's Naval, Military, or Air Forces."

I beg to move "That this House doth agree with the Lords in the said Amendment."

It seems to me that there is a point of some substance involved in1 this Amendment. We are told that these are only drafting Amendments, and that their only object is to make the Bill more clear. Why should this proviso about restrictions in canteens not be enforced? There may be some reason for its not being enforced, but I should like to ask what it is. Although I have not taken an active part in these Debates, that does not mean to say that I am not very interested in this as in other legislation, and, with regard to this particular item, I think it should be made clear that the Regulations laid down under the Army Act contain provisions laying down very rigidly that canteens are not to open any longer hours than clubs and so forth.

If my hon. and gallant Friend will permit me to point it out, this Amendment has nothing to do with hours. It is inserted in the Clause which contains restrictions upon credit sales

Question put, and agreed to.

CLAUSE 16.—(State management districts.)

(1) Until Parliament otherwise determines, the schemes of State management of the liquor traffic established by the Board under the Defence of the Realm (Liquor Control) Regulations, 1915, in the districts defined in the Second Schedule to this Act (in this Act referred to as State Management Districts) may be continued, by the Secretary of State as respects districts in England, and by the Secretary for Scotland as respects districts in Scotland. For this purpose such of the said Regulations as are contained in the extract therefrom which is set out in the Third Schedule to this Act are hereby continued in force in their application to those districts, and shall to that extent have effect as if enacted in this Act.

Lords Amendment:

In Sub-section (1), leave out the word "traffic" ["liquor traffic"], and insert "trade."

Agreed to.

CLAUSE 21.—(Application to Scotland and Ireland.)

(1) This Act shall apply to Scotland subject to the following modifications:—

( c ) The Sections of this Act whereof the marginal notes are "Special provision as to extension of permittted hours in the evening in certain premises," "Application and adaptation of Licensing Act," "Statement to be included in club rules," and "penalties," shall not apply;

Lords Amendment:

In Sub-section (1, c), leave out the words "'Special provision as to extension of permitted hours in the evening in certain premises.'"

I beg to move, "That this House doth agree with the Lords in the said Amendment."

May we have some explanation as to what is the attitude of the Government on this Amendment? It is of the very greatest importance to Scotland. The hour at which licensed premises were closed in Scotland before the War was ten o'clock, and there were no licensed premises of any kind allowed to open after that hour. I have always thought the experience of the working of the Liquor Control Board Regulations during the War was that the restrictions had been of some benefit to the country, and I thought everyone was agreed that we were not going back to the old hours at any rate. This is not only going back to the old hours, but actually imposing upon Scotland longer drinking hours than ever they had before. No licensed premises were open in Scotland after ten before the War, and when recently the many areas in Scotland were called upon to vote as to whether they would have a further limitation of hours, it was a limitation of the already restricted hours that were enforced during the War, but now, if this Amendment is accepted, we shall have houses closing at ten o'clock at the very least, and in addition we shall have, as we had before, permission given to the magistrates to allow houses to remain open another hour, and, in addition to that, permission in certain cases—and not only permission, because I think all restaurants will have a right if their premises are adapted for giving meals—to allow an extra hour in which to supply drink with meals. There is no demand for this in Scotland. They have never had anything of this kind at all, and it is increasing the drinking hours in Scotland when everyone believed that this Bill would have the effect of restricting the drinking hours to a period probably less than we had before the War, and in no case more. I hope the Government will not accept this Amendment, which is going to raise a great issue and will meet with great opposition over a large part of Scotland.

I should like to support what my hon. and gallant Friend has said. In regard to this matter, he speaks with a greater knowledge of the position in Scotland than I do, and I should like to have the attention of the Secretary for Scotland to this question. If the effect of this Amendment be to increase the number of legal hours pre-War—of course I cannot assume for a moment that that is the intention of the Government—but if that be so, I shall join my hon. and gallant Friend in the Lobby in dividing against it. I invite both my right hon. Friends opposite to clear up that position, because that is certainly going far beyond any intention of the Government or of this House.

I think the House ought to consider what is the history of this particular matter. When the Government introduced this provision they expressly excluded Scotland, and I presume that they did that after due enquiry had been made as to Scottish opinion on the matter. I believe there was an Amendment on the Paper either in Committee or on Report for the purpose of including Scotland, but, as a matter of fact, that Amendment was not even moved. When the question was raised in another place, the spokesman of the Government resisted this Amendment on behalf of the Government, and in the end he stated that he would not divide upon the matter unless it was desired to take the opinion of the House. But he made it perfectly clear that, so far as the Government were concerned, they did not think that this was an Amendment which ought to be accepted. I cannot conceive anything to alter that view. If this Amendment be carried, it will certainly place Scotland in the matter of drinking hours in a worse position than it was before the War, and that occurs with regard to no other provision in the Bill. I do think that I am entitled to say that those with with whom I am associated in regard to this matter have made great sacrifices of views which we hold very dear. Since the Conference there have been absolutely no concessions whatever upon the other side.

The hon. Member seems to forget that the question was not as between the present and the pre-War hours, but as between the present and the War hours.

I think the hon. Baronet has scarcely appreciated the argument I am addressing to the House. The point I am putting now is that, since the date of the introduction of the Bill, every concession which has been made, has been made on the part of those with whom I am associated, and, so far as I know, no concession has been made by those with whom the hon. Baronet is associated. In these circumstances, I do say we ought not to be asked to make this fresh concession. What is the present position in Scotland? Licensed premises are closed at nine o'clock in the evening. Under the Bill you go back to ten o'clock, which was the universal closing hour pre-War, but it is in the power of licensing magistrates, if they find that there are special circumstances in any district, to add half an hour, so that the closing hour in Scotland under the Bill may be half-past ten. Under this further provision premises may be open for another hour, up to half-past eleven, for the supply of liquor with suppers, and another half-hour after that for the consumption of liquor ordered prior to that time. So that it would be quite possible in certain districts in Scotland, under this Bill, for licensed premises to be open till midnight. Anyone who knows conditions in Scotland will agree that it would be a mistake to allow public-houses to be open till midnight. Any licensee can go to the magistrate and say that he has premises that are suitable for the supply of supper, and if the magistrate finds that they are so suitable he has no option but to give the permission. Therefore, it is correct to say that under this provision it will be possible for licensed premises in Scotland to be open till midnight. If that is carried, it will be in the teeth of the public opinion in Scotland. [HON. MEMBERS: "No!"] It will be going back on the position they have come to deliberately during a whole generation. The magistrates, before the War, had authority to allow an extension of hours, but full advantage was not taken of this, and, following public opinion, the magistrates fixed the closing hour at ten o'clock. It would be altogether in the teeth of public opinion if we now pass this provision, which allows premises to be open till midnight. I hope the Government will stand firm on this Amendment and make it clear to the House. I cannot for a moment suppose that if they adopt that course they will in any degree endanger the Bill. I myself should be very reluctant to take any action that would endanger the Bill. If this House stands firm, their Lordships are likely to waive the position they have taken up; at any rate, I do appeal to the Government, in view of the great concessions and sacrifices we have made not, at this late hour, to compel us to make a further concession which we would resent very greatly, but to be true to the spirit of compromise which has animated these proceedings.

Let me say at once, in answer to the last words that fell from my hon. Friend, that there will be no compulsion. I trust that the good humour and good judgment that alone have made this. Bill possible are not going to fail. I reply at once to the question of my right hon. Friend, the Member for Peebles (Sir D. Maclean) that the effect of this Bill, no less in Scotland than in England, will be to curtail the hours during which drinking, and the sale of drink, will be permitted. There came a time in the progress of the Bill when it was made plain to all concerned in the success of the Measure, and not least my right hon. Friend opposite, that an exception must be made with regard to the provision of suppers. It is quite true that the hon. Member for Leigh (Mr. Raffan) has made a concession, but others have also made concessions There came a time when it was apparent, so far as England was concerned, that we must insert this provision which has come to be known as the supper Clause. It is quite true that in the Bill, as originally drawn, and as it left the Committee of this House, there was not in it a similar provision in relation to Scotland, but in another place that provision has been made. I exhort my hon. Friend opposite to observe that there is the greatest difference in the world between "imposing" and "permitting." What is it that is done? Under Clause 3 it is provided:

There are important reasons why this Bill should be a Statute to-morrow, and if we are going to differ with the Lords on this Amendment that result will be impossible. My hon. Friend has shown good sense and forbearance in these discussions, and I ask him not to press his objection. The provisions of this Bill, when it becomes an Act, will come into operation in 14 days, and that brings us to the end of the month and also to the end of the war, but if this course be not taken, then the regulations will have to be extended.

The Attorney-General says this provision is permissive, but the option lies with the license-holders. There is no option with the magistrates. It is compulsory upon them to give the permission if the conditions be fulfilled.

That is so, and if the conditions are fulfilled, the licensee will be in a position to provide supper but he will not be in a position to compel anybody to have supper.

The hon. Member for Leigh (Mr. Raffan) suggests that he speaks for Scotland, but the representative of the Leigh Division of Lancashire can hardly be said to be in touch with Scottish opinion. He has suggested that there has been a breach of faith in this matter, and that he and others have made concessions. He has argued that, by allowing Scotland to be placed on the same footing as England in this matter, a breach of faith has been committed. I hold in my hands two telegrams which I received this afternoon from the City of Glasgow, one of the divisions of which I have the honour to represent, and in both I am asked to vote in favour of this Lords Amendment—in favour, in fact, of placing Scotland under the same conditions as England in this respect.

That does not matter. They come from restaurateurs and hotel keepers in various parts of the City. They come from classes in Glasgow especially interested in this matter. I merely rose in order to counter the suggestion of the hon. Member for the Leigh Division of Lancashire that public opinion in Scotland is wholly against this Amendment from the Lords being inserted in the Bill.

I would not have risen but for the fact that the hon. Member who has just spoken claimed to represent Scottish opinion as against the opinion represented by the hon. Member for Leigh. I should imagine that each one of us who represents a Scottish constituency has an equal right to say that he represents Scottish opinion. This is the fact that until the two telegrams referred to by the hon. Member (Mr. G. Murray) had been received from restaurant keepers and hotel keepers in Glasgow, no expressions of opinion had come from Scotland. Therefore, the hon. Member, in trying to convince the House that any feeling of the kind exists in Scotland is making a false point.

I think it is only fair that when one point of view has been put forward as from Scotland, the other point of view should be stated as well.

If that is my hon. Friend's view, then I may tell him it would be quite easy for me to produce from my own desk an equal number of telegrams from the other side expressing a contrary point of view. There is another point which, I hope, will be dealt with by someone on the Government Bench. The Attorney-General has suggested that there are difficulties in the way of not settling this matter amicably to-night. If you are going to settle it amicably surely it is unfair to press an Amendment which makes an addition to the hours on top of the pre-War hours. That is what this Amendment does, and that is the real point at issue I hold a view which is rather personal to myself with regard to the Government treatment of the trade from the point of view of war conditions. The Government imposed on the trade certain conditions for war purposes, but failed to release it for them after the War was over. This Amendment does increase by a Statute which we are going to place on the Statute Book of the country the pre-War hours of opening in Scotland.

That is not the real point. Hon. Members know perfectly well there never was any difficulty in Scotland in getting facilities. There are sufficient facilities in Scotland already—in every part of it—to deal with thus particular point. The point is that you are increasing the hours which existed pre-War. I have always known that, instead of imposing on Scotland something that obtained in England, average opinion in England wanted to approximate to what obtained in Scotland. We have been the envy of opinion in England so far as dealing with licensing questions was concerned. If the Attorney-General really wants to do us a service and carry out the spirit of this bargain, he should seriously consider this point, that it is unfair to introduce an Amendment which does actually increase the facilities in hours as compared with pre-War so far as Scotland is concerned. Every other part of the Bill has been agreed, and if the Attorney-General wants, as he says, to save this by the same good humour and tact which have obtained throughout the Bill, let him drop something which increases the hours.

Perhaps I may say just a word in answer to what has fallen from my hon. Friend. I began my remarks by saying that there will be no compulsion, and I venture to express the hope that we shall not continue the discussion. If we are to have a Division, let us have it now. There will be a free vote, with no Whips.

I am sorry that we cannot agree to the appeal of the Attorney-General. I should have liked, to hear the Secretary for Scotland on this subject. I know that he will speak quite honestly, and I am very much surprised that he has not given his views. I feel certain that he knows, from his knowledge of Scotland, that this is an entire mistake, and that, notwithstanding my hon. Friend the Member for Springburn (Mr. Macquisten), who tries to pose as a terrible fellow for drink—which he is not—the Government know that it is entirely in the teeth of public opinion in Scotland. I know for a fact, and the Government know, that this is legislating in advance of—or behind, whichever way you like to look at it—public opinion in Scotland, and has aroused a great deal of indignation for which there is no necessity in many parts of Scotland. I do not care two brass farthings for the telegrams which have been referred to, so far as a great part of Scotland is concerned, because two-thirds of Scotland have practically gone dry, but it does affect other parts of Scotland, and I think it is unfair that the House of Lords should send us this Amendment at the eleventh hour and hold at our heads this pistol that if we do not pass this Amendment to-night the Bill is lost. This sort of blackmail—I do not use the word in any offensive sense—has been carried on too often in this House of Commons, and it is about time it was stopped. I appeal particularly to the Secretary for Scotland on this point. I do not think he should remain silent on a question of this sort, which concerns the social life of Scotland. I appeal to him to oppose this Amendment with as much strength as lie tried last year to oppose a certain Amendment to the Agriculture Bill, but to which he had to agree If he is going to accept it, I hope he will not have the experience he had on the last occasion when he accepted an Amendment on behalf of the Government and half the Government voted against him in the Lobby. That is what you call Government responsibility.

My hon. Friend has made a direct appeal to me to speak on the Amendment. All I can say is that I have had representations with regard to this Amendment, in the sense of supporting it and in the sense of rejecting it from Scotland, and as it seems to me to differ from the Amendment the House of Lords has inserted would be to imperil the fate of the Bill, I am not prepared to take that responsibility. There have been representations both in favour and against the Amendment, and it seems to me the best thing is that there should be a free vote of the House. The House will have an opportunity of expressing its views without any pressure from the Government or the Government Whips, and I do not think my hon. Friend can ask for anything more than that.

If it were left to the free vote of the Scottish Members, we could accept the suggestion of the Secretary of Scotland, but to leave it to the free vote of the whole House means that we shall have hon. Members voting under a misapprehension, because I am certain there are hon. Members representing other parts of the country than Scotland who do not realise that if this Amendment be passed it will impose on Scotland something that Scotland has never had before. There is not a shadow of a doubt of that. We have our own licensing law, under which there is ample provision for any special arrangement that may be required. That has been provided for for a long time past. But this Amendment proposes something additional. It proposes that if provision is made by restaurants, or even by ordinary licensed premises, for supplying suppers, in big towns particularly, you can have an extension of an hour. I am certain that if the people of Scotland realised that this matter was being decided to-night, there would have been more communications with representatives of every Scottish constituency. This matter has been rushed from another place, and for Members of the Government to take up the position they are taking up is a breach of the compromise come to in Committee. It is not the first breach of that compromise. They have been giving away point after point to the liquor trade since the compromise was made, and not a single concession has been given to the temperance party. Nobody knows better than the Secretary for Scotland that if this thing is passed there will be trouble in Scotland regarding it. [HON. MEMBERS: "No."] Yes. It is an extension of the licensing law in Scotland, and no Member representing any other part of the kingdom has a right to impose upon Scotland an extension of the licensing law which is not wanted by the people of Scotland. The licensing law of Scotland has been held up as an example for other parts of the country to follow. You are reversing that order to-night. You are seeking by this Amendment to impose upon Scotland what has been provided for with regard to England. When the Bill left this House this provision applied only to England, but in another place it has been made to apply to Scotland against the wishes of the great majority of Members representing Scottish constituencies in this House, and against the will of the majority of the Scottish people. I hope the Secretary for Scotland will repudiate any policy of that kind, and that the Attorney-General will even yet say that this Amendment cannot be agreed to.

Hon. Gentlemen on the other side who profess to represent the views of Scotland must be unacquainted with recent events in Scotland. After long agitation they got the Scottish Temperance Act, and by an almost overwhelming majority the Scottish people in every district, with the exception of the constituency of West Edinburgh, have voted against them. [HON. MEMBERS: "But not for an extension of hours!"] So far all the concessions have been made to the temperance party, who tried to use war restrictions for their own particular propaganda. One would imagine that the War had been fought for the benefit of the temperance party.

As an old Conservative, I cannot give a silent vote on this subject. I regret exceedingly that the Attorney-General has accepted the Amendment. There is no doubt it is an extension of the hours for selling liquor in Scotland. The Scottish people have never been asked about this thing. It has been sprung upon the House. I understood that this was to be an agreed Bill; but at the last moment the hours are to be extended in Scotland. I remember when the closing time was eleven o'clock; but it got to ten o'clock, and now we are going to have the old condition of things It is a great mistake. I support those who are opposing this Amendment.

CLAUSE 22.—(Short title, construction and commencement.)

(2) This Act shall be construed with the Licensing (Consolidation) Act 1910.

Lords Amendment:

At the end of Sub-section (2) insert

"and that Act and this Act may be cited together as the Licensing Acts, 1910 and 1921;

"(3) This Act as it applies to Scotland shall be construed as one with the Licensing

Question put, "That this House doth agree with the Lords in the said Amendment."

The House divided: Ayes, 118; Noes, 30.

Division No. 351.]

AYES.

[11.51 p.m.

Adkins, Sir William Ryland Dent

Green, Albert (Derby)

Ormsby-Gore, Hon. William

Ainsworth, Captain Charles

Green, Joseph F. (Leicester, W.)

Parker, James

Atkey, A. R.

Gretton, Colonel John

Pease, Rt. Hon. Herbert Pike

Baird, Sir John Lawrence

Hallwood, Augustine

Perkins, Walter Frank

Baldwin, Rt. Hon. Stanley

Hall, Lieut.-Col. Sir F. (Dulwich)

Pollock, Sir Ernest Murray

Balfour, George (Hampstead)

Hall, Rr-Adml Sir W.(Liv'p'I. W. D'by)

Pratt, John William

Banbury, Rt. Hon. Sir Frederick G.

Hamilton, Major C. G. C.

Rawlinson, John Frederick Peel

Barker, G. (Monmoutn, Abertillery)

Hannon, Patrick Joseph Henry

Rees, Sir J. D. (Nottingham, East)

Barlow, Sir Montague

Hennessy, Major J. R. G.

Richardson, R. (Houghton-le-Spring)

Barnett, Major Richard W.

Hewart, Rt. Hon. Sir Gordon

Roberts, Rt. Hon. G. H. (Norwich)

Barnston, Major Harry

Holbrook, Sir Arthur Richard

Roundell, Colonel R. F.

Bell, Lieut.-Col. W. C. H. (Devizes)

Hood, Joseph

Samuel, A. M. (Surrey, Farnham)

Betterton, Henry B.

Hopkins, John W. W.

Samuel, Samuel (W'dsworth, Putney)

Bird, Sir A. (Wolverhampton, West)

Hunter, General Sir A. (Lancaster)

Sanders, Colonel Sir Robert Arthur

Blades, Sir George Rowland

Hunter-Weston, Lieut.-Gen. Sir A. G.

Seddon, J. A.

Borwick, Major G. O.

Hurd, Percy A.

Seely, Major-General Rt. Hon. John

Bowerman, Rt. Hon. Charles W.

Inskip, Thomas Walker H.

Shortt, Rt. Hon. E. (N'castle-on-T.)

Bowyer, Captain G. W. E.

Jodrell, Neville Paul

Sprot, Colonel Sir Alexander

Brittain, Sir Harry

Kellaway, Rt. Hon. Fredk. George

Stanler, Captain Sir Seville

Broad, Thomas Tucker

Kidd, James

Stanley, Major Hon. G. (Preston)

Buckley, Lieut.-Colonel A.

King, Captain Henry Douglas

Stanton, Charles Butt

Casey, T. W.

Lane-Fox, G. R.

Thomson, Sir W. Mitchell- (Maryhill)

Chamberlain, Rt. Hn. J. A.(Birm.,W.)

Law, Alfred J. (Rochdale)

Townley, Maximillan G.

Churchman, Sir Arthur

Locker-Lampson, Com. O. (H'tingd'n)

Tryon, Major George Clement

Clough, Sir Robert

Lort-Williams, J.

Wallace, Thomas Brown (West Down)

Colfox, Major Wm. Phillips

Lowther, Lt.-Col. C. (Lonsdale)

Ward, William Dudley (Southampton)

Davidson, J. C. C.(Hemel Hempstead)

Lowther, Maj.-Gen. Sir C. (Penrith)

Weston, Colonel John Wakefield

Edge, Captain William

Loyd, Arthur Thomas (Abingdon)

Whitla, Sir William

Edwards, Major J. (Aberavon)

Macpherson, Rt. Hon. James I.

Williams, Lt.-Col. Sir R. (Banbury)

Elliot, Capt. Walter E. (Lanark)

Macquisten, F. A.

Wills, Lt.-Col. Sir Gilbert Alan H.

Eyres-Monsell, Com. Bolton M.

Moore, Major-General Sir Newton J.

Wilson, Colonel Leslie O. (Reading)

Falle, Major Sir Bertram Godfray

Moore-Brabazon, Lieut.-Col. J. T. C.

Wise, Frederick

FitzRoy, Captain Hon. Edward A.

Morden, Col. W. Grant

Wood, Hon. Edward F. L. (Ripon)

Forrest, Walter

Moreing, Captain Algernon H.

Wood, Sir H. K. (Woolwich, West)

Fraser, Major Sir Keith

Munro, Rt. Hon. Robert

Young, E. H. (Norwich)

Frece, Sir Walter de

Murchison, C. K.

Young, Sir Frederick W (Swindon)

Fremantle, Lieut.-Colonel Francis E.

Nall, Major Joseph

Younger, Sir George

Ganzoni, Sir John

Neal, Arthur

Gibbs, Colonel George Abraham

Newman, Sir R. H. S. D. L. (Exeter)

TELLERS FOR THE AYES.—

Gilbert, James Daniel.

Nicholson, Reginald (Doncaster)

Mr. Ford and Mr. Gideon Murray.

Gilmour, Lieut.-Colonel Sir John

NOES.

Adamson, Rt. Hon. William

Morgan, Major D. Watts

Wallace, J.

Barrie, Charles Coupar (Banff)

Purchase, H. G.

Ward, Col. J. (Stoke-upon-Trent)

Breese, Major Charles E.

Raeburn, Sir William H.

Ward-Jackson, Major C. L.

Farquharson, Major A. C.

Raffan, Peter Wilson

Waterson, A. E.

Griffiths, T. (Monmouth, Pontypool)

Ratcliffe, Henry Butler

White, Charles F. (Derby, Western)

Hogge, James Myles

Robinson, S. (Brecon and Radnor)

Williams, Aneurin (Durham, Consett)

Jameson, John Gordon

Robinson, Sir t (Lanes., Stretford)

Williams, Col. P. (Middlesbrough, E.)

Kenworthy, Lieut.-Commander J. M

Royce, William Stapleton

Wood, Major M. M. (Aberdeen, C.)

Lawson, John James

Seager, Sir William

Young, Robert (Lancaster, Newton)

Maclean, Rt. Hon. Sir D. (Midlothian)

Sturrock, J. Leng

McLaren, Robert (Lanark, Northern)

Thorne, G. R. (Wolverhampton, E.)

TELLERS FOR THE NOES.—

Dr. Murray and Mr. James Brown.

(Scotland) Acts, 1903 to 1913, and these Acts and this Act as it so applies may be cited together as the Licensing (Scotland) Acts, 1903 to 1921." Agreed to.

First Schedule

Part I

Provisions of Licensing (Consolidation) Act, 1910, Repealed

Section fifty-four,

Section fifty-six,

Section sixty-one,

Section sixty-two.

The sixth schedule.

Lords Amendment:

After the words "Section fifty-six" insert

"Sub-section (2) of Section fifty-eight from 'and the provisions of this Act' to the end of the Sub-section."

Agreed to.

Fourth Schedule

PROVISIONS RELATING TO THE TRANSFER OF POWERS, PROPERTY, &c

1. All rights and liabilities of the Board, whether arising under any contract or otherwise, shall be enforceable by or against the new authority, and in the construction and for the purposes of any judgment, decree, order, award, deed, contract, or other document delivered, executed, or made before the transfer to the new authority of any powers or duties, the name of the new authority shall be substituted for the name of the Board or of the trustees of the Board.

Lords Amendments:

In paragraph (1) after the word "any" ["any judgment"] insert "Act of Parliament."

After the word "document" insert "passed."

Agreed to.

War Pensions Bill

Order for Consideration of Lords Amendments read.

I beg to move "That the Lords Amendments be now considered." Most of the Amendments are purely drafting Amendments, but I shall have a word to say on the last Amendment.

Question put, and agreed to.

Lords Amendments considered accordingly.

CLAUSE 1.—(Establishment of war pensions committees.)

(3) A committee established by a scheme under this Section shall consist of such number of members, not exceeding 25, as may be specified in the scheme, and every such scheme shall provide for the inclusion, so far as practicable, in the committee of representatives of—

( e ) voluntary associations engaged in the care of ex-service men and their families in the area;

Provided that—

(i) the persons appointed is representatives of the persons mentioned in paragraphs ( a ) and ( b ) of this Subsection shall together constitute not less than one-fourth of the total membership of the committee, and the persons appointed as representatives of the persons mentioned in paragraphs ( c ), ( d ), and ( e ) respectively shall in each case constitute not less than one-fifth of the total membership of the committee and where one-fourth or one-fifth of the total membership is not an integral number, the nearest integral number to one-fourth or one-fifth, as the case may be, shall be substituted therefor; and

Lords Amendments:

In Sub-section (3), paragraph (i), after the word "fifth" ["one-fifth as"] insert "of the total membership."

At the end of paragraph (

(ii) where the number of the members to be appointed as representatives of the persons mentioned in paragraph (d) as ascertained in the manner aforesaid is not an even number, the number so ascertained shall be increased by one; and."

Agreed to.

CLAUSE 2.—(unctions of war pensions conAmittees)

(1) The functions of a committee established under this Act shall be—

( h ) to perform such other duties in relation to pensions, and to any other matters, as the Minister may by Regulation prescribe;

( i ) to take steps to secure the assistance and co-operation of voluntary workers in connection with the work of the committee, and particularly in rural districts.

Lords Amendments:

In Sub-section (1, a ) leave out the words "such committees," and insert "the committee; and."

In Sub-section (1, b ) leave out the words "such committee," and insert " the committee; and."

In Sub-section (1) leave out paragraph ( h. )

At the end of Sub-section (1,

and (i) to perform such other duties in relation to pensions, and to any other matters as the Minister may by Regulation prescribe."

Agreed to.

CLAUSE 3.—(Constitution of Central Advisory Committee.)

As soon as possible after the passing of the Act the Minister shall appoint a central advisory committee consisting of officers of the Ministry (local and central), ex-service men, and representatives of the (War Pensions) Committees to consider such matters as may be put before them by the Minister for their advice.

Lords Amendments:

Leave out the word "the" ["passing of the Act"], and insert "this."

Leave out the word "appoint," and insert "constitute."

Leave out the words "The (War Pensions) Committees," and insert

"any committees constituted under the War Pensions Acts, 1915 to 1920, or under this Act, and for the time being in existence."

Agreed to.

CLAUSE 4.—(Final awards.)

(2) The case of every such officer and man as aforesaid shall, with a view to making a final award, be taken into consideration not later than four years after his discharge from the service or after the first award of a pension to him, as may be prescribed by Regulations made under this Section.

(3)If any person in whose case a final award has been made under this Section is dissatisfied with the award, he may, at any time within one year from the date on which notice of the making of the award is given to him, appeal to a Pensions Appeal Tribunal established under Section eight of the Act of 1919, and the tribunal shall, if they are of opinion that, having regard to all the circumstances of the case, the final award ought not to have been made, or that the proper amount has not been awarded, as the case may be, either set aside the award or increase or decreases the amount thereof as they think proper, and shall in any other case disallow the appeal:

Lords Amendments:

In Sub-section (2), leave out the word "then" ["not later then four years"], and insert "than."

In Sub-section (3), leave out the words "has not been awarded," and insert "of pension or proper rate of disablement was not fixed by the award."

Leave out "thereof" ["the amount thereof"], and insert "or rate so fixed."

Agreed to.

CLAUSE 6.—(Amendment of s. 8 of 9 & 10, Geo. 5, c. 53; 11 Geo. 5, c. 23.)

(2) A Pensions Appeal Tribunal in considering an appeal under Section eight of the Act of 1919, against the rejection of a claim, shall have regard to the terms of the Warrant, Order in Council, or Order in pursuance of which the claim purports to be made, and shall not allow the appeal unless they are satisfied that the claim is in all respects well founded having regard to the said terms.

Lords Amendment:

In Sub-section (2), leave out "an appeal under Section eight of the Act of 1919, against the rejection of a claim," and insert "such an appeal as aforesaid."

Agreed to.

CLAUSE 9.—(Regulations to be laid before Parliament.)

Every Order and every Regulation made under this Act shall be laid before each House of Parliament forthwith, and if an address is presented to His Majesty by either House within the next subsequent twenty-one days on which that House has sat next after any such Order and Regulation is laid before it praying that the Order or Regulation may be annulled, His Majesty in Council may annul the Order or Regulation, and it shall thenceforth be void, but without prejudice to the validity of anything previously done thereunder.

Lords Amendment:

Leave out the words

"if an address is presented to His Majesty by either House within the next subsequent twenty-one days on which that House has sat next after any such Order or Regulation is laid before it praying; that the Order or Regulation may be annulled, His Majesty in Council may annul the Order or Regulation, and it shall thenceforth be void, but without prejudice to the validity of anything previously done thereunder—"

and insert

"unless and until an address is presented to His Majesty by either House of Parliament within the next subsequent twenty-one days on which that House has sat next after any such Order or Regulation is laid before is, praying that the Order or Regulation may be annulled the Order or Regulation shall have effect as if enacted in this Act."

I beg to move, "That this House doth agree with the Lords in the said Amendment."

This Amendment was moved on behalf of the Government, and they are quite prepared to embody it in the terms of the Bill.

Question put, and agreed to.

Telegraph (Money) Bill

Read the Third time, and passed.

Public Works Loans Bill

Considered in Committee; and reported, without Amendment; read the Third time, and passed.

Supreme Court Officers (Retirement, Pensions, Etc.) Bill

Considered in Committee.

[Sir E. CORNWALL in the Chair.]

Clauses 1 ( Compulsory retirement of certain officers of the Supreme Court ), 2 ( Pensions of certain officers of the Supreme Court ), 3 ( Payment of pensions, etc. ), 4 ( Registrars and clerks to Registrars in Chancery Division ), 5 ( Amendment of 42 and 43 Viet., c. 78), and 6 ( Short title ) ordered to stand part of the Bill.

NEW CLAUSE.—(Application to existing officers.)

The foregoing provisions of this Act relating to the retirement of officers shall not apply to a person holding either of the offices specified in Part II. of the First Schedule to this Act if he was appointed to that office before the first day of July, nineteen hundred and fifteen, and the foregoing provisions of this Act relating to the retirement and pensions of officers shall not apply to a person holding any of the offices specified in Part I. of the First Schedule to this Act if he was appointed to that office before the date aforesaid, unless he gives written notice in such form and within such period as is prescribed by the Lord Chancellor of his desire to accept those provisions in lieu of the provisions in respect of pensions which would have applied to him if this Act had not passed.—[ Mr. Shortt. ]

Brought up, and read the First time.

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

This Clause is merely to provide that those persons who held office prior to 1915 shall not be—unless it is their own choice—brought within the provisions of the Bill. The matter is left to them entirely. The year 1915 has been selected as fixing the period, because from that year onwards all who were appointed were told quite clearly that they would be brought under the provisions of any Bill which might be introduced, and they took office on that understanding. The Clause provides for a casus omissus in the original draft of the Bill, by dealing with those who were not warned at the time of their appointment that they would be brought within the Bill.

I do not oppose, but merely wish to say, in justice to the House and myself, that the Bill as originally brought in would have worked an injustice to numbers of people, had not this been noticed, and the attention of the House called to it. It shows the undesirability of introducing a Bill of this character, involving the livelihoods of numbers of people, for the first time so late in the Session as 1st August. There was no particular reason why this Bill should not have been introduced months ago. As I say, I do not oppose the Bill, nor do I oppose this new Clause, which is necessary to rectify the omission. Quite unintentionally the Home Secretary misled the House when he told me that these very people did not come under the Bill and were never intended to come under it. The new Clause makes their position secure, and therefore I heartily support it, with the hope that in future the Departments concerned will bring in Bills of this kind at an earlier stage of the Session.

Question put, and agreed to.

Clause read a Second time, and added to the Bill.

Bill reported.

As amended, considered.

If this be a Money Bill, can we take it through any further stages to-night?

If it be a Money Bill, we cannot take all the remaining stages to-night. In any case it is now ten minutes past twelve o'clock, and as we have given the Government any number of Bills, I think they might be content to leave this Measure as it is to-night, and take it up again.

We said we would not take another stage of the Bill if my hon. and learned Friend objects, or feels that there are any difficulties about it.

Exchequer and Audit Departments [Salaries]

Resolution reported,

"That for the purposes of any Act of the present Session to amend the Exchequer and Audit Departments Acts, 1866 and 1889, it is expedient—

Resolution Read a Second time.

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

The Home Secretary made a very able speech, on this matter last night, and I want to emphasise what he said, for the course of conduct by the Treasury in this matter is absolutely unjustifiable. The House had not sanctioned any of these salaries, but the money was paid throughout 1920 and 1921. This report authorises that being done at that time. There was a suggestion from the Front Opposition Bench that this had been put straight by using the Civil Contingencies Fund, but I wish to make it clear that there is no sort of defence for anybody receiving money from the Consolidated Fund, or any other source, until it has been definitely authorised by this House. Anybody who does that is absolutely wrong and acting improperly, and if they did not know it before they will know it now. The only way we can get at the permanent officials of the Treasury is by protest in this House, and we repeat that it was an improper thing to do. The Chancellor is in no sort of way to blame, except nominally.

In reference to the observations of the hon. Gentleman, I thought this House would resent me excluding from the benefit of the change recommended by the Committee, and applied to servants of the Government, the one man to whom the recommendation applied here, and that man a critic of the Government and the servant of this House.

The right hon. Gentleman forgets for the moment that the rest of the Treasury officials equally got the advance.

The hon. and learned Gentleman talks as if this were a matter of Treasury officials. It is not so; it is a matter of the higher servants. The Committee reported; the Cabinet adopted that report and decided to act upon it. I think, by the way, that I informed the House of the action taken by the Government almost at the same time that the decision was given. There was no concealment. I entirely agree with my hon. and learned Friend that the sanction of the House to these alterations ought to have been sought very much earlier, and I regret that I did not bring the matter before the House. I did not, however, rise to prolong argument, but because it is really impossible to listen to hon. Members saying it was the fault of a senior servant. It was my decision. If you want to hang anybody, I am the person who Ought to be hanged.

This matter was before the House in March at a time when the wages of the workers in the country were being, or had been, reduced, and we were having lectures continually from the Anti-waste party and from hon. Gentlemen on the opposite side with reference to increased expenditure. To raise this salary is, to my mind, an almost criminal act on the part of the Government. I strongly protest that at this stage in the financial condition of the country the salary of any official should be raised from £2,000 to £3,000. The country will view with indignation the action of the Government. There is no justification for the increase. I understand that this official has had £500 increase in the shape of bonus. He is resigning his position. Therefore I can see no reason for the increase of salary except to increase the pension of this official.

Children of Unmarried Parents Bill

As amended ( in the Standing Committee ), considered.

CLAUSE 1.—(Appointment and duties of collecting officer.)

If a collecting officer has not been appointed under the Affiliation Orders Act, 1914, the clerk to the justices, or in the Metropolitan Police District the chief clerk of a Metropolitan police court, shall be, and he is hereby appointed to be, the collecting

officer and shall exercise the powers conferred and the duties imposed upon him by the Affiliation Orders Act, 1914:

Provided that the said clerk to the justices or chief clerk, as the case may be, may delegate his powers and duties under the said Act to some person nominated by him and approved by the justices or the magistrates of the court.

The House is running right in the teeth of the opinion of the electors. of the country. It is a flagrant instance of class legislation, the workers' wages being reduced on the one hand and this official's salary being increased on the other.

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

The House divided: Ayes, 91; Noes, 17.

Division No. 352.]

AYES.

[12.22 a.m

Adkins, Sir William Ryland Dent

Gilmour, Lieut.-Colonel Sir John

Percy, Lord Eustace (Hastings)

Ainsworth, Captain Charles

Green, Albert (Derby)

Perkins, Walter Frank

Armstrong, Henry Bruce

Hallwood, Augustine

Pollock, Sir Ernest Murray

Baird, Sir John Lawrence

Hannon, Patrick Joseph Henry

Pratt, John William

Baldwin, Rt. Hon. Stanley

Hennessy, Major J. R. G.

Purchase, H. G.

Barlow, Sir Montague

Hopkins, John W. W.

Raeburn, Sir William H.

Barnett, Major Richard W.

Home, Sir R. S. (Glasgow, Hillhead)

Roberts, Rt. Hon. G. H. (Norwich)

Barnston, Major Harry

Inskip, Thomas Walker H.

Robinson, S. (Brecon and Radnor)

Blades, Sir George Rowland

Jameson, John Gordon

Robinson, Sir T. (Lanes., Stretford)

Borwick, Major G. O.

Jones, J. T. (Carmarthen, Llanelly)

Roundell, Colonel R. F.

Bowyer, Captain G. W. E.

Kellaway, Rt. Hon. Fredk. George

Samuel, Samuel (W'dsworth, Putney)

Breese, Major Charles E.

Kidd, James

Sanders, Colonel Sir Robert Arthur

Broad, Thomas Tucker

King, Captain Henry Douglas

Seddon, J. A.

Brown, T. W. (Down, North)

Law, Alfred J. (Rochdale)

Seely, Major-General Rt. Hon. John

Buckley, Lieut.-Colonel A.

Lewis, Rt. Hon. J. H. (Univ., Wales)

Shortt, Rt. Hon. E. (N'castle-on-T.)

Casey, T. W.

Lindsay, William Arthur

Stanier, Captain Sir Beville

Chamberlain, Rt. Hn. J. A. (Birm., W.)

Locker-Lampson, Com. O. (H'tingd'n)

Stanley, Major Hon. G. (Preston)

Chamberlain, N. (Birm., Ladywood)

Lort-Williams, J.

Sturrock, J. Leng

Churchman, Sir Arthur

Lowther, Colonel C. (Lonsdale)

Thomson, Sir W. Mitchell- (Maryhill)

Davidson, J.C.C. (Hemel Hempstead)

Lowther, Maj.-Gen. Sir C. (Penrith)

Tryon, Major George Clement

Edwards, Major J. (Aberavon)

Loyd, Arthur Thomas (Abingdon)

Wallace, Thomas Brown (West Down)

Elliot, Capt. Walter E. (Lanark)

Macquisten, F. A.

Whitla, Sir William

Evans, Ernest

Mason, Robert

Williams, Aneurin (Durham, Consett)

Eyres-Monsell, Com. Bolton M.

Moore, Major-General Sir Newton J.

Williams, Lt.-Col. Sir R. (Banbury)

Farquharson, Major A. C.

Moore-Brabazon, Lieut.-Col. J. T. C.

Wills, Lt.-Col. Sir Gilbert Alan H.

Ford, Patrick Johnston

Moreing, Captain Algernon H.

Wise, Frederick

Forrest, Walter

Murray, Hon. Gideon (St. Rollox)

Young, E. H. (Norwich)

Fraser, Major Sir Keith

Neal, Arthur

Frece, Sir Walter de

Newman, Sir R. H. S. D. L. (Exeter)

TELLERS FOR THE AYES.—

Fremantle, Lieut.-Colonel Francis E.

Nicholson, Reginald (Doncaster)

Colonel Leslie Wilson and Mr. Parker.

Ganzoni, Sir John

Parry, Lieut.-Colonel Thomas Henry

Gibbs, Colonel George Abraham

Pease, Rt. Hon. Herbert Pike

NOES.

Adamson, Rt. Hon. William

Lawson, John James

Williams, Col. P. (Middlesbrough, E.)

Atkey, A. R.

Maclean, Rt. Hon. Sir D. (Midlothian)

Young, Sir Frederick W. (Swindon)

Balfour, George (Hampstead)

MacVeagh, Jeremiah

Young, Robert (Lancaster, Newton)

Banbury, Rt. Hon. Sir Frederick G.

Morgan, Major D. Watts

Bell, Lieut.-Col. W. c. H. (Devizes)

Raffan, Peter Wilson

TELLERS FOR THE NOES.—

Brown, James (Ayr and Bute)

Thome, G. R. (Wolverhampton, E.)

Mr. George Barker and Mr. Waterson.

Davies, Thomas (Cirencester)

Ward, Col. J. (Stoke upon Trent)

I beg to move to leave out the Clause.

I understand the promoters of the Bill are prepared to agree.

Amendment agreed to.

CLAUSE 3.—(Amount to be paid by father under Affiliation Order.)

In any Order made after the passing of this Act under Section four of the Bastardy Laws Amendment Act, 1872, the court may provide, notwithstanding anything in any Act, that payments shall be made by the putative father to an amount not exceeding forty shillings a week, and any payment prescribed by the Order to be made shall, notwithstanding anything contained in any Act, continue to be made until the child in respect of whom the Order was made shall have attained the age of sixteen years, unless such child dies before attaining that age.

I beg to move to leave out the word "forty" ["not exceeding forty shillings"], and to insert instead thereof the word "twenty."

This is a question of the amount of the order which may be made. The old maximum amount was 5s. a week. It was raised to 10s. per week during the War. The Bill proposes £2 per week, but that is a big jump. I think that the promoters of the Bill are prepared to accept my Amendment that the present amount should be doubled, and that they are satisfied with that jump.

I beg to second the Amendment.

Amendment agreed to.

CLAUSE 5.—(Legitimation of illegitimate persons by the marriage of their parents.)

(1) Where the parents of an illegitimate person (whether born before or after the passing of this Act) marry one another after the passing of this Act the marriage shall, provided that it is valid in accordance with the law for the time being in force in England and Wales, render that person, as from the date of the marriage, legitimate for all purposes; and where at the time of the marriage the illegitimate person has died leaving any issue, that issue shall have the same right of succession to any property, or to any title or dignity, as if the parents of that issue had been legitimate:

Provided that where either of the parents have between the date of the birth and the date of their marriage to one another been married to any other person any children who by virtue of the subsequent marriage become legitimate hall for all purposes of succession (whether to property or to any title or dignity) be deemed to be younger than any children of the previous marriage; and

Provided also that no child made legitimate under this Section shall be entitled to succeed to or to take any property, real or personal, settled by a person other than his father or mother by any disposition prior to the date of such marriage unless such child would have been entitled to succeed to or take such property if this Act had not been passed.

(2) Where no person is registered as the father of an 'illegitimate person the registrar shall, on the application of both, parents, and on production to him of a statutory declaration made by the person alleging himself to be the father of the child that to the best of his belief he is the father, enter the name of that person as the father, with a note referring to the application and giving the date thereof.

I beg to move in Sub-section (I), after the word "purposes" ["for all purposes"], to insert the words "except as hereinafter provided."

This is merely a drafting Amendment.

Amendment agreed to.

Further Amendment made: In Subsection (I) leave out the words "or to any title or dignity" ["succession to any property, or to any title or dignity"].—[ Sir F. Banbury. ]

I beg to move at the end of Sub-section (I) to add the words "nor shall he have right of succession to any title or dignity."

I should have thought that on an important Amendment such as this, the hon. Baronet would have given some explanation. He should make some suggestions as to why we should agree to this important Amendment.

I would be very willing to explain the Amendment, but it has been agreed to by the promoters, and it is now half-past twelve. This Amendment is merely consequential on the leaving out of Clause 5 the words "or to any title or dignity."

Amendment agreed to.

I beg to move to leave out Subsection (2), and to insert instead thereof a new Sub-section—

(2) "It shall be competent for the Registrar-General, on production of satisfactory evidence, to authorise at any time the re-registration of the birth of any person made legitimate under this Section."

This is merely a drafting Amendment in accordance with the recommendation of the Registrar-General, and puts the Sub-section into language more in accordance with the present practice.

If the representative of the Home Office considers it necessary "to submit this Amendment, after the evidence which has been afforded by the Registrar-General, the least he could have done was to have put it upon the Paper. We have already seen, by a Bill just passed, the position in which some Members of this House have placed themselves by accepting such Amendments. I take this opportunity of protesting against such procedure. The House deserves more consideration than that manuscript Amendments should be put in which carry such weight.

I am afraid that this Amendment, instead of being merely drafting, is very serious. As the Bill stands at present it reads that where no person is registered as the father of an illegitimate person the Registrar shall, on the application of both parents, and on the production to him of a statutory declaration made by the person alleging himself to be the father, enter the name of that person as father. That is perfectly harmless. The suggestion of this Amendment is to omit these words and to substitute others which are very far reaching. It is that it shall be the duty and the power of the Registrar-General at any time to re-register. That is a very different story. It makes an alteration of the mother's name as well as that of the father's. It will also mean tampering with the register in which the entry has already been made. The registration of the father is done in practice at the present time. That is done within about a year of the birth of the child, and this Bill gives power that it should be done at any time during the child's life. The Amendment of the Home Office goes much further, and is very dangerous in that the re-registration would efface from the register the fact that the child was illegitimate.

There is controversy on this matter, and I am not prepared to meet controversy. I at once ask leave to withdraw this Amendment. I agree that the House should have an opportunity of seeing important Amendments and I hoped that the House would accept my statement that this was putting in better form Sub-section (2). If the House be not prepared to accept that, I agree that it is too late to ask the House to accept a manuscript Amendment.

Amendment, by leave, withdrawn.

Motion made, and Question proposed, "That the Bill be now read the Third time.

May I. on behalf of thousands of people in this country—who will receive with pleasure the news that this Bill has been passed—offer grateful thanks to the Government for giving facilities for its passage, to the hon. Member for Ladywood (Mr. Neville Chamberlain) who has done all the hard work, and to the Members who have supported the Measure.

Question put, and agreed to.

Bill read the Third time, and passed.

Gas Regulation Act, 1920

Resolved,

"That the draft of a Special Order proposed to be made by the Board of Trade under Section 10 of the Gas Regulation Act, 1920, on the application of the Bishops Stortford, Harlow, and Epping Gas and Electricity Company, which was presented on the 9th August (Cmd. 1454), be approved."

Resolved,

"That the draft of a Special Order proposed to be made by the Board of Trade under Section 10 of the Gas Regulation Act, 1920, on the application of the Chelmsford Corporation, which was presented on the 10th August (Cmd. 1462), be approved."

Resolved,

"That the draft of a Special Order proposed to be made by the Board of Trade under Section 10 of the Gas Regulation Act, 1920, on the application of the Elland-cum-Greetland Gas Company, which was presented on the 10th August (Cmd. 1465), be approved."

Resolved,

"That the draft of a Special Order proposed to be made by the Board of Trade under Section 10 of the Gas Regulation Act, 1920, on the application of the Harwich Gas and Coke Company, which was presented on the 5th August (Cmd. 1444), be approved."

Resolved,

"That the draft of a Special Order proposed to be made by the Board of Trade under Section 10 of the Gas Regulation Act, 1920, on the application of the Lea Bridge District Gas Company, which was presented on the 8th August (Cmd. 1455), be approved."

Resolved,

"That the draft of a Special Order proposed to he made by the Board of Trade under Section 10 of the Gas Regulation Act, 1920, on the application of the North Middlesex Gas Company, which was presented on the 9th August (Cmd. 1452), he approved."

Resolved,

"That the draft of a Special Order proposed to be made by the Board of Trade under Section 10 of the Gas Regulation Act, 1920, on the application of the Redhill Gas Company, which was presented on the 10th August (Cmd. 1463), be approved."

Resolved,

"That the draft of a Special Order proposed to he made by the Board of Trade under Section 10 of the Gas Regulation Act, 1920, on the application of the Salisbury Gas Light and Coke Company, which was presented on the 3rd August (Cmd. 1443), be approved."

Resolved,

"That the draft of a Special Order proposed to be made by the Board of Trade under Section 10 of the Gas Regulation Act, 1920, on the application of the Southgate and District Gas Company, which was presented on the 9th August (Cmd. 1453), be approved."

Resolved,

"That the draft of a Special Order proposed to be made by the Board of Trade under Section 10 of the Gas Regulation Act, 1920, on the application of the Tunbridge Wells Gas Company, which was presented on the 2nd August (Cmd. 1439), be approved."

Resolved,

"That the draft of a Special Order proposed to be made by the Board of Trade under Section 10 of the Gas Regulation Act, 1920, on the application of the Walker and Wallsend Union Gas Company, which was presented on the 10th August (Cmd. 1464), be approved."

Resolved,

"That the draft of a Special Order proposed to be made by the Board of Trade under Section 10 of the Gas Regulation Act, 1920, on the application of the Welwyn, Knebworth, and District Gas Company, Limited, which was presented on the 8th August (Cmd. 1449), be approved."

Resolved,

"That the draft of a Special Order proposed to be made by the Board of Trade under Section 10 of the Gas Regulation Act, 1920, on the application of the Thurstonland Urban District Council, which was presented on the llth August (Cmd. 1468), be approved, subject to the following Amendment:—

Clause 10, Sub-clause (2), at beginning, insert 'Except as provided by Section 11 of this Order.'"—[ Sir W. Mitchell-Thomson. }

Scottish Board of Health Act, 1919

Resolved,

"That the Scottish Board of Health (Factories and Workshops Transfer of Powers) Order, 1921, presented the 20th day of June, 1921, be approved."—[ Mr. Munro. ]

Greenwich Hospital and Travers' Foundation

Resolved,

"That the Statement of the estimated income and expenditure of Greenwich Hospital and of Travers' Foundation for the year 1921–22 be approved."—[ Commander Eyres-Monsell. ]

The remaining Orders were read, and postponed.

Whereupon Mr. SPEAKER adjourned the House, without Question put, pursuant to the Order of the House of 26th July.

Adjourned at Seventeen Minutes before One o'clock.