asked the President of the Board of Trade for figures showing the cost of running merchant ships by coal and oil, respectively?

I regret that owing to the many varying factors which enter into the question it is not possible for me to give any reliable figures as to the comparative costs of running ships by oil and coal.

asked the President of the Board of Trade which shipping companies used oil for running their merchant ships during the general strike and the coal dispute of 1926; for how many ships oil was so used; and for how many ships they are continuing to use it at the present time?

I regret that the information asked for by the hon. Member is not available.

asked the President of the Board of Trade whether he is in a position to make a statement on the result of the recent Anglo-Spanish trade negotiations?

I would refer my hon. Friend to the Board of Trade Journal for 14th April, in which full information is given as to the Convention between this country and Spain, signed on 5th April, as the result of the negotiations to which he refers. I am sending him a copy of the Journal.

In giving consideration to the circulation of confidential information to firms engaged in trade with other countries, will the hon. Gentleman consider circulating it immediately previous to concluding negotiations, rather than wait perhaps weeks after a Treaty is concluded before it is published? Could not that information be sent immediately before concluding negotiations, and in confidential form?

It is rather difficult for the Board of Trade to communicate with all the firms to which such information might be of interest. I think we have adopted the most expeditious method possible by putting it in the Board of Trade Journal.

asked the Chancellor of the Exchequer the amount guaranteed under the credit insurance of exports?

I have been asked to reply. Up to the 23rd April, guarantees have been given amounting to £6,428,817.

asked the President of the Board of Trade if the reduction of 45·6 per cent., as shown between the years 1924 and 1926, in respect of exports from Great Britain to Japan was due to a depreciation in value of the goods exported or to a reduction in the quantity of the goods exported; and if he will state the trades in which the largest decline tok place?

The answer is long and includes a table of figures. The hon. Member will perhaps agree to my circulating it in the OFFICIAL REPORT.

Would it be possible to state what are the goods?

No, I could not 'fix on the goods. I should say that, as regards the reduction of 45 per cent. in the value of the exports, the hon. Member must bear in mind that the earthquake in Japan in 1923 caused a very heavy export trade to Japan in 1924, and also he must bear in mind that in 1926 there was a very low export of goods to all countries.

asked the President of the Board of Trade whether his attention has been drawn to the circumstances under which the Southern Railway Company has placed a large contract with a Swedish firm; whether he can give the House any information with regard to the official statement of the railway company, that their policy of placing orders with British firms has been rendered difficult by the existence between electrical manufacturers of agreements to quote identical prices; and in view of the fact that since this decision, a local authority has placed a similar order with a Dutch firm and given the same reason for doing so, he will hold an immediate inquiry into all the circumstances?

I have seen the statement by the Southern Railway to which the hon. Member refers, and also the statement issued by the General Electric Company, one of the British Companies concerned. I have no information beyond that contained in those statements, but they appear to set out all the essential facts, and I do not think a special inquiry such as the hon. Member suggests would be likely to serve any useful purpose.

Is the hon. Gentleman aware that, unless a protective policy be introduced very shortly, these unhappy rings will be smashed?

Since this order was placed by the Southern Railway Company and the official reason given, has not the hon. Gentleman seen that the Mansfield Town Council has placed a, similar order abroad, and does he not think that, in view of such things happening, some inquiry is needed?

This is a matter of controversy between buyer and seller, each of whom is as much concerned in getting British work for British workers. They do not shirk publicity. They have made their full statement to the Press in reply, and I do not think the Board of Trade could add to the examination of the case by setting up any inquiry. I think, if I may say so, that the hon. Gentleman in putting his question has done even more than the Board of Trade could do.

Is the Minister prepared to consider representations to bring the electrical industry concerned under the Safeguarding of Industries Act, so as to free it from unnecessary competition?

That is what we call an ironical question.

Is the hon. Gentleman prepared to investigate whether the two firms that have got these contracts, one in Sweden and one in Holland, have been subsidised by their Governments?

I am not prepared to take any such action.

You are not prepared to do anything at all.

Is it not a new policy for hon. Members above the Gangway to seek to protect industries in their own country?

That, again, is an ironical question.

asked the Secretary of State for War whether the withholding of pay from other ranks of the 47th (2nd London) Division, Territorial Army, in respect of Easter camp, had any effect on the attendance at last Easter training; and whether he will give the number of other ranks of the 47th Division present at training at Easter, 1927, 1926, and 1925, respectively, and the corresponding strength of the division at those dates?

The figures, which, with my hon. Friend's permission, I will circulate in the OFFICIAL REPORT, appear to support the suggestion in the first part of the question. I might explain that the General Officer Commanding decided that the Training Funds at his disposal, from which pay for attendance at Easter camp, if granted, would have had to be found, could be more advantageously spent on courses of instruction and on the training of specialists.

asked the Secretary of State for Scotland the average cost to the State of settling a smallholder on the land in Scotland (including enlargement of holdings) from 1912 to 1926?

Payments and receipts in connection with schemes of land settlement are spread over periods of years. The average cost per holder to the State could, therefore, only be estimated by an actuarial valuation of these sums. Such a calculation has not been made in respect of the period from 1912 to 1926. It would occupy much more time than has been available since notice of this question appeared. I may say, however, that a statement in respect of schemes carried out under the Land Settlement (Scotland) Act, 1919; was submitted by the Board of Agriculture for Scotland to the Public Accounts Committee in 1922, and was published in Appendix No. 34 of the Report of the Committee for that year.

Is it not possible to arrive at a figure for the whole period that land settlement has been carried out in Scotland?

Yes, Sir; I think that that might be possible, but it would take considerable time. I am prepared to consider whether I could get the information.

Could I put down a question on the subject later?

Does it cost more or less to settle a man in Scotland than in Australia?

I could not answer that question without notice.

What is the percentage of failures in land settlement in Scotland, seeing that we have 60,000 waiting to emigrate out of Scotland?

Obviously notice is required of that question.

asked the Minister of Transport whether it is proposed to extend the round-about traffic system to other congested crossings in the London traffic area; and which points are at present under consideration?

I have now before me a recommendation by the London Traffic Advisory Committee that the "roundabout" system should be adopted in those portions of Queen Victoria Street, Queen Street, Cannon Street, Cheapside, and Poultry, which form two triangles to the West of the Mansion House, and am in consultation with the City authorities in the matter. Other recommendations of the Committee included the adoption of "one-way" traffic working in the following streets:

• Montpelier Vale, Blackheath,
• Chapel Street, Marylebone,
• Bow Road (part), Poplar,
• Marylebone Lane,
• Somerset Street, off Orchard Street,

and also some re-arrangement of the traffic working at the Albert Gate, Kensington.

Can the right hon. Gentleman say whether the particularly dangerous spot at the Elephant and Castle has been brought to the notice of the Advisory Committee?

I do not think that it has been investigated up to the present moment.

Will the right hon. Gentleman bring it to the notice of the Committee? It is one of the most dangerous spots in South London.

I will.

Will my right hon. Friend consider the re-planning of the Grosvenor Gardens outside Victoria Station, in order to relieve the congestion of traffic, and establish a roundabout system?

I know that that particular case is being considered, but it would hardly come into the question of the round-about system. The conditions of traffic there are being considered.

Does the list which the right hon. Gentleman has just given exhaust the places under consideration by the Committee?

Those are the recommendations we are dealing with at present. When those are dealt with, we shall go on to others.

In these new experiments will consideration be given to the safety of pedestrians?

Yes, that is a question which is engaging the anxious consideration of the Advisory Committee and myself, and suggestions for crossing places and other devices are being closely studied. It is a very important question.

asked the Postmaster-General at what telephone exchanges in the London area it is proposed to introduce the absent subscriber service; and if he can state the number of subscribers that have used this service since its inception on the City exchange?

The introduction of the absent subscriber service at other exchanges will be considered in due course in the light of experience gained from the trial now in operation at the City Exchange. Approximately 40 subscribers have used the service since its inception on the 1st instant.

Will the right hon. Gentleman consider the reduction of the price for the absent subscriber service?

I should like a little further experience before answering that question.

asked the Postmaster-General if his attention has been drawn to the coaches attached to trains on the Continent with notices proclaiming that they are Radiowagens, in which a full service of radio and broadcasting programmes is supplied to travellers; and whether he has received representations, requests, or applications from any of the railway groups in Great Britain asking for his permission to instal a similar service on the long-distance trains operating in Great Britain?

I am aware that broadcast receiving sets have been installed in long-distance trains in some countries. Experiments conducted some years ago in this country showed that it was possible to receive broadcast programmes on trains in motion, but no application has been received for a licence for the permanent installation of wireless receiving apparatus in trains.

Is it not advisable, in the interests of the general public, that they should have some time free from the effects of broadcasting?

asked the Minister of Pensions the approximate amount saved by his Department for the 12 months ended to the last convenient date by supplying wooden legs to pensioners instead of light metal limbs?

No saving has been made, as there has been no change in the policy of the Department in connection with the supply of limbs.

asked the Secretary of State for the Colonies whether he is aware of the correspondence which has passed between Mr. J. Pollok and the Government of Kenya and the complaints raised by Mr. Pollok therein with regard to his treatment in the matter of the Turbo railway contract and the subsequent action of the Government in refusing him other contracts; and whether he is prepared to grant an inquiry into the matter?

I have not received the correspondence, but I will make inquiries by despatch.

asked the Secretary of State for the Colonies whether it is proposed to reduce the immigration fee of £1 per head in Palestine, or to apply the funds so raised to meet the cost of the immigrants' camp and quarantine station, where their costs are at present borne by the Zionist agency?

It is not proposed to reduce the immigration fee, which is £E.1 in the case of every immigrant of 16 years or over, and 20 piastres in respect of every immigrant below that age. As regards the second part of the question, I understand that the Zionist Organisation does not maintain or meet the cost of any quarantine stations, but it may, of course, pay to the Government on behalf of immigrants entering Palestine under its auspices the usual charges made for their accommodation, disinfection and vaccination at those stations. The Organisation itself maintains immigrants' camps at which a certain number of its immigrants are allowed to live until they can be found other accommodation. It is not proposed that the Palestine Government should take over the cost of these camps.

asked the Secretary of State for the Colonies what is the present position of the concession of the Tiberias hot springs; and what consideration has been, or is proposed to be, given for this concession, and to whom?

A lease of land at Tiberias, on which hot springs are found, is being negotiated between the Palestine Government and certain gentlemen who, before the War, had received from the Ottoman authorities a concession for the exploitation of these thermal springs. It is proposed that the lease shall run for 40 years, and shall include the following conditions: The lessees will be obliged to erect and completely furnish in three years the thermal bath establishment. Pending the completion of the buildings, the lessees must pay as annual rental to the Government of Palestine 60 per cent. of the gross receipts from the existing baths or £E.2,250, whichever shall be the greater. After completion of the buildings the lessees must pay an annual rent of £E.3,000, augmented by a proportion of the profits when the lessees are able to declare a dividend. Maximum rates to be charged for the baths are fixed for the first five years after completion of the buildings, and thereafter the rates are to be subject to agreement between the lessees and the High Commissioner. On the expiration of the lease, the buildings and plant become the property of the Palestine Government.

asked the Secretary of State for the Colonies what is the present position in regard to the concession for the development of the Dead Sea salt deposits, and what consideration is being received therefrom?

Negotiations for the conclusion of an agreement for the working of the concession are in progress, and I hope to be able to make a statement shortly.

Will the right hon. Gentleman look into this question very carefully and see that the development of this important chemical deposit is not held up because of ancient Turkish concessions, which are not being worked?

I have been looking into the question very carefully for a long time.

Will the right hon. Gentleman go into the matter and see whether the Dead Sea is on the site of the former Cities of the Plain, Sodom and Gomorrah?

asked the Secretary of State for the Home Department whether the Home Office Circular of 20th August, 1920, defines the limits of discretion that may be exercised by Justices with regard to the conditions that may or may not be attached to the licence of a building for the performance of a play; and, if not, whether he intends to issue a circular defining such limits?

Owing to complaints as to the unsatisfactory condition of theatres in different parts of the country, a circular letter was sent to licensing authorities on the 25th August, 1920, drawing their attention to the matter, and suggesting that use should be made of their powers under the Theatres Act, 1843, to ensure the buildings being maintained in a proper state. I have no authority to define the limits of these powers. I am sending the hon. Member a copy of the circular.

Can the hon. and gallant Gentleman say whether the discretion of the Justices applies to the play as well as the building, or to the building only?

I must refer the hon. Member to the terms of the Act of 1843.

Is it not a fact that all plays are licensed under an old Act called the Disorderly Houses Act, which is several hundred years old, and is it not time that that Act was amended?

asked the Prime Minister when it is proposed to take the Second Reading of the Ouse Drainage Bill?

I am not yet in a position to name a date.

asked the Prime Minister whether he can now indicate any approximate date on which the Government will be able to make proposals for the reform of the Second Chamber?

No, Sir; I am not yet in a position to make any statement on this subject.

asked the Prime Minister whether the Minister of Transport, the Secretary for Mines, and the Secretary for the Overseas Trade Department will continue to hold their respective offices to the end of the present Session?

I am not yet in a position to make a statement on this subject. Full information on this as on other aspects of the changes referred to will be given when the necessary legislation is introduced.

Since we were assured, when considering the Electricity Act in Committee, that we would always have direct contact with the new Electricity Board through the Ministry of Transport, will the Prime Minister not reconsider the question and keep the promise given to the Committee on that occasion?

I am afraid I did not quite catch the hon. Member's question.

As a promise was made that a Minister of Transport would always be in the House to keep us in direct contact with the Board appointed under the Electricity Act, are the Government going to resile from that promise or are they going to keep it?

The point of contact is a question which must he considered.

Will the right hon. Gentleman consider the propriety in the public interest of excluding the Department of Overseas Trade from any impending legislation of this kind? [HON. MEMBERS: "Why?"]

asked the Chancellor of the Exchequer whether he can present a statement of the estimated savings which will be effected by the abolition of the, Ministry of Overseas Trade and the Ministry of Transport?

I would refer my hon. Friend to the reply given to a similar question on the 12th April.

Will the right hon. Gentleman seriously take into consideration the danger to public interests involved in the abolition of these Ministries, and the importance of having Ministers in the house responsible for these Departments?

I think that is a matter very proper to be debated and it is a very good illustration of the difficulties of effecting any economies.

Will the duties of the Overseas Trade Department again devolve on the Foreign Office?

I think that is another question for debate. The Chancellor of the Exchequer cannot answer that question.

asked the Prime Minister whether the establishment of a combined Ministry of Defence, with a combined general staff, is to receive further examination, in view of the urgent need for economy in the public services?

No, Sir. Full inquiries have already taken place, and the results have been communicated to Parliament.

Does not the right hon. Gentleman think that a new situation has arisen owing to the deficit in the public finances which has led to the proposed abolition of three other Departments; and does not that open up the whole question again of the better organisation of Government?

I do not think so, but it has always been open to the House to debate this subject, and I have expressed the desire that they would chose it for debate.

asked the Chancellor of the Exchequer if he will issue a memorandum showing the details of the actual receipts from sundry loans and miscellaneous revenue during the last financial year, and the estimated receipts during the present financial year?

I will circulate a statement in the OFFICIAL REPORT.

asked the Chancellor of the Exchequer the reason for the increase in the cost of other Consolidated Fund services from the actual cost of £2,869,000 odd last year to the estimated cost of £3,700,000 odd in the present year?

There is an increased charge this year of £350,000 in payments under the Tithe Act, 1925, which was only in operation for six months last year, and an increase of about £700,000 in the estimated interest payments to the National Debt Commissioners in respect of borrowings last year on behalf of the Unemployment Insurance Fund.

asked the Chancellor of the Exchequer what has been the total addition to the face value of the National Debt brought about by the various conversions that have taken place since 11th November, 1918?

The addition to the face value of the debt is about £318 millions, but, as I explained recently, the face value figures are misleading, and the annual interest charge on the debt has decreased in the last seven years by £47 millions per annum.

asked the Chancellor of the Exchequer what was the total amount of accrued interest paid on the £35,450,000 national savings certificates redeemed in the year ending 31st March, 1927?

The interest paid in the year was £12,279,000.

asked the Chancellor of the Exchequer what was the estimated total amount of interest accrued at 31st March, 1927, on the £372,000,000 savings certificates outstanding at that date; and what will be the additional accrued interest on these certificates on the 31st March, 1928, assuming that none have been paid off in the meanwhile?

The answer to the first part of the question is about £121 millions and to the hypothetical second part of the question about £24 millions.

Is there a reserve accumulating against these liabilities or are they a charge on future revenue?

I must have notice of that question.

also asked the Chancellor of the Exchequer if his attention has been drawn to the fact that there are now available samples of Empire brandy of good quality; and whether he is prepared to increase the rate of preference on Empire brandy?

I am aware that 1,240 gallons of Empire brandy were cleared for home consumption in the year ending 31st March, 1927, as compared with 553,000 gallons of non-Empire brandy. I would remind my hon. Friend that Empire brandy in common with other classes of Empire spirits already enjoys a preference of 2s. 6d. per proof gallon which in the case of rum, the kind of spirits mainly concerned, has been found effective in diverting consumption to Empire supplies. In these circumstances, I could not agree, as at present advised, to increase the preference on Empire spirits.

Is it not the case, that the preference only amounts to about 4 per cent. of the values; that in regard to rum, British Empire rum in any event is practically the sole supply and that, therefore, the cases are not analogous?

Will the Chancellor of the Exchequer tell us who is the best judge of brandy in the House?

Will the right hon. Gentleman consider recommending the Chairman of the Kitchen Committee to have it put in the refreshment room of the House?

It is there.

asked the Chancellor of the Exchequer what is the official estimate of the percentage of direct to indirect taxes according to the new Budget?

The proportions are as follow: Direct taxes, 63·44 per cent. Indirect taxes, 36·56 per cent., but of this figure Sumptuary Taxes account for 31·58 per cent. These include, among other things, the shortening of the brewers' credits.

Does the right hon. Gentleman's estimate include Stamp Duties or Motor Vehicle Duties?

It does not include Stamp Duties, but it includes the McKenna Duties—not the Motor Vehicle Duties which are paid for the load Fund.

Are the Stamp Duties included under the heading of direct taxation?

Yes, Sir.

asked the Chancellor of the Exchequer the approximate cost of the China Expeditionary Force to as near a date as possible; and what is the approximate cost per week at the present time?

asked the Secretary of State for War the cost up to the latest convenient date of the Shanghai Defence Corps and any other special force serving in China?

The additional cost to Army funds of the Shanghai Defence Force up to 31st March last is estimated at £950,000, as explained in the Supplementary Esti-Estimate. I am not yet in a position to give the total additional cost of the Shanghai Defence Force up to a date later than 31st March, but the balance of the transport charges incurred before that date but payable in the current financial year is £300,000, and the cost of the transport of the additional troops recently despatched to China is estimated at £250,000. I regret that I am unable to give a weekly figure of cost for the Force.

Surely the right hon. Gentleman must have formed some estimate of the monthly cost of keeping this large force in Shanghai; hut if he cannot give us an idea, perhaps the Chancellor of the Exchequer is able to answer what the expedition is costing per month?

It is not possible to give an accurate statement of what the weekly or monthly cost is, but in a very short time I shall be able to give the total cost to the end of this month if the right hon. and gallant Member will put down another question.

We do not ask for an exact statement; what we are asking is, has the right hon. Gentleman formed any estimate of the monthly cost of this expedition to China?

Surely the Secretary of State for War must know from the Treasury the amount they are paying out month by month or week by week?

I know what I am paying out month by month, but that would only be misleading if given to the House without taking into account the liabilities which are being incurred.

When these figures are being arrived at, are any calculations made as to the extra men enrolled in England to take the places of the men who have gone to China? Am I right in assuming that extra men are enlisted?

No, the hon. Member is not right in assuming that—except so far as the A reserve is concerned.

Are we to take it from the right hon. Gentleman's answer that, when a force is sent overseas, the War Office make no estimate whatever of the probable cost for each month of its absence?

Hon. Members must realise that in obtaining accommodation—for example—for troops at Shanghai or elsewhere, it is impossible to make any accurate estimate in advance. I can, of course, tell the House what the actual expenditure is, but to do so, without taking account of the liabilities which are being incurred, would be merely to mislead the House.

Has the Minister made any estimate of what the loss would have been if we had not sent out this force?

asked the Secretary of State for War whether the wives of the men in regiments at present in China have been asked to leave the married quarters in the barracks where the regiments were previously stationed?

Instructions have been issued that, so far as possible, the families are to be left undisturbed, but in seine cases they have had to leave their quarters to make way, for example, for the families of relieving units. In such cases, the outgoing families have either made their own arrangements and been, granted lodging allowance, or, if they prefer, have been found alternative quarters.

asked the Secretary of State for Foreign Affairs whether the Powers who have military forces in China have set up any joint negotiating plenipotentiary body, or whether those Powers have any binding agreement not to conclude separate agreements with any of the contending forces in China?

The Powers having military forces in China are represented in China by Diplomatic and Consular officers who, in their relations with the Chinese authorities, act jointly when the occasion demands it. Apart from this, the Powers have set up no special joint negotiating body, and have made no such agreement as the hon. and gallant Member has in mind.

Can the hon. Gentleman say whether Japan and America have agreed not to conclude any arrangement without our joining them?

That does not arise out of this question.

asked the Secretary of State for Foreign Affairs whether he has any further statement to make an the situation in China?

asked the Secretary of State for Foreign Affairs if he has any further statement to make on the situation in China?

Military operations between the Northern and Southern forces are for the moment at a standstill. The northward advance of the Southern forces beyond the Yangtse has been checked, and they have been driven back over the Yangtse in the region of Nanking by the forces of Marshal Sun Chuan-fang, which have now re-appeared and taken part in the operations. The Northern troops have not, however, crossed the Yangtse. The Yangtse is, for the moment, the boundary betwen Northern and Southern territory, except at Hankow, where Southern troops still occupy country north of the river.

Meanwhile, a serious division has, appeared in the Nationalist ranks. General Chiang Kai-shek, the Nationalist Commander-in-Chief, has been dismissed from his post and has repudiated the authority of the extremist Hankow Government, which is under strong Communist influence. He has the support of the more moderate elements of the Kuomintang, some of whom have joined him at Nanking, where he is reported to be setting up a Government of his, own. The Hankow authorities have been placed in serious financial difficulties by the defection of Chiang Kai-shek, by the cutting of their communications with Shanghai and Canton and by the cessation of foreign business owing to disturbed conditions and the lack of security either for life or for property. They now control only a relatively small area in Central China around Hankow, and the civil and military authorities in the lower Yangtse area along the coast are, for the moment at any rate, on the side of Chiang Kai-shek. General Chiang Kai-shek has not yet made any military move against Hankow, but he has taken action against the extremists in the area under his control.

Anti-Communist raids have been carried out by the Nationalist forces at Shanghai, Soochow, Wusieh, Hangchow, Ningpo, Swatow and Canton.

Recent telegrams from the Treaty Ports show that the Yangtse valley still remains the chief area of disturbance and that elsewhere in both North and South China the situation is for the moment quiet.

In the Yangtse region a state of turmoil persists, and neither the life nor the property of foreigners is secure.

The British communities in the Upper Yangtse area have had to be evacuated. His Majesty's Consulates at Chengtu, Chungking, Ichang and Changsha have been closed and British gunboats withdrawn from those ports. The United States, Japanese and French communities have also been withdrawn.

At Hankow only about 200 British subjects and about 75 Americans, mostly men, still remain, and these are concentrated for safety either on board ship or in houses on the river front. H.M.S. "Carlisle" and "Vindictive," "Keppel," and "Wolsey" have arrived to reinforce the British naval forces already in the port. Most of the Japanese community have also been evacuated. The Japanese are holding their concession in force and have landed field guns. They are refusing to resume trade until security is reestablished. The situation is very tense and large numbers of better class Chinese are leaving the port.

At Hankow, Nanking and Chinkiang, His Majesty's Consuls have had to establish themselves on board ship, and at the two latter ports such British subjects as still remain are also living on board and are unable even to go ashore.

As regards foreign property, the position is no better. The few steamers that are running on the river are continually fired on, even if they are convoyed by men-of-war, and in spite of retaliation by the latter. Foreign property at Nanking has continued to be looted since the incident a month ago. The latest reports, however, show some improvement; the troops appear to be under better control, and looting has decreased; all Communists have left or have been arrested, and an anti-Communist proclamation has been posted in the name of Chiang Kai-shek. At Wuhu most foreign buildings have been occupied by Southern troops. At Chinkiang on 20th April, advance troops of the 1st Nationalist Army, on their arrival, commandeered all foreign buildings in the concession as well as the British Consulate for billets for the troops which were expected to arrive from Nanking. Later, however, as a result of the local military commanders' representations to General Chiang Kaishek, the latter ordered the troops not to enter the concession, and the advance troops all evacuated the Consulate and the concession.

Shanghai itself is quiet, although trade is stagnant. On the other hand, reports from Hongkong show that in South China British trade is again reviving. The demand for British goods is growing, and coasting trade is, on the whole, satisfactory.

While thanking the hon. Gentleman for his very interesting statement, will he answer one question? Is it our policy to maintain neutrality as between the two Governments—

Three!

—as between the three Governments of Hankow, Nanking and Peking?

It has always been the policy of His Majesty's Government to maintain an attitude of neutrality.

In the course of his statement, the hon. Gentleman frequently used the term "extremists." Will he define to the House what he means by "extremists"?

Can the hon. Gentleman tell us at the present moment which of the various forces are being backed by the Front Opposition Bench and which by the back Opposition benches?

That is more a question for the Chinese than for us.

Is it the position of the present Government that, if they had all the Communists in this country in gaol, and the Labour party made an illegal organisation, they would consider that all their troubles were at an end?

asked the Secretary of State for Foreign Affairs whether any reply has been received from the Nationalist Government of China to the joint Note of the Powers regarding the recent events at Nanking; and what is the nature of the reply?

Separate replies were received on 14th April by the Consuls-General of the five Powers to the identic Notes delivered by them to Mr. Chen on 11th April. I will circulate in the OFFICIAL REPORT the text of the reply received by His Majesty's Consul-General. The replies to the other Powers are to the same general effect, with variations of detail in each case.

Would it be convenient for the hon. Gentleman to tell me whether we are making any further reply or taking any further steps?

That is now under discussion among the different Governments.

asked the Secretary of State for Foreign Affairs whether the consular body at Shanghai has received any complaint from the Consul of the Union of Socialist Soviet Republics to the effect that no letters or telegrams are allowed to reach the Consulate; and whether it is proposed to make any representations to the municipality on the subject?

My right hon. Friend has received no report of any such complaint.

Will the hon. Gentleman undertake to communicate with the Shanghai Municipal Council with a view to ascertaining the truth of the repeated statements which have appeared in the Press to this effect?

The municipal body is an independent body over which we have no control at all. The incident to which the hon. Lady refers was fully described in the House by my right hon. Friend.

Is it not the Minister's position that the Shanghai Municipal Council is in a position to commit acts of war against a friendly nation, and has the Shanghai Municipal Council any authority by Treaty to take any part in international affairs?

On the contrary, I understand that the action of the Municipal Council the other day was taken very largely at the request of the Soviet Consul himself.

Has this question anything at all to do with His Majesty's Government?

A million a month!

asked the Secretary of State for Foreign Affairs whether he has received any official reports confirming the statements that documents have been discovered by the Peking Government implicating the Soviet Government in anti-British propaganda in China; and if so, what steps, if any, he proposes to take?

asked the Secretary of State for Foreign Affairs whether his attention has been called to the documents which have just been seized by the Northern Chinese Government on the premises of the Russian Soviet Embassy at Peking, proving that the Soviet representatives were not only conspiring against the Government to which they were accredited, but were distributing money and arms and issuing propaganda for mob attacks upon foreigners, especially those who were British subjects; and whether action will now be taken to terminate the Trade Agreement in view of this further breach of the express terms of that Agreement?

I have been notified that documents of the nature described were seized in the Legation Quarter at Peking by the Chinese authorities, but until those documents have been thoroughly examined, I am unable to say what action His Majesty's Government will consider it desirable to take in this connection.

Is the hon. Gentleman aware that an official resume of some of the documents has been issued stating that no care need be taken in mob violence for British subjects, as the British Government are not likely to do anything but issue words, whereas Japan is very likely to resort to force?

I have seen various press reports, but am waiting for authentic information.

What about your neutrality now?

Before taking any action in this matter, will the Government be satisfied as to the genuineness of these documents? Is it not a fact that they were discovered by the Chinese police with no one else present to see who put them there?

I have already said that a very careful examination of these documents is taking place.

By Whom?

By His Majesty's Minister and his staff.

Would not the presence of British police be a breach of neutrality?

Have His Majesty's Government examined the original documents?

The originals are being examined.

asked the Secretary of State for Foreign Affairs whether he can lay Papers to inform the House of the present position and prospects of the disarmament negotiations or, alternatively, to indicate any approximate time at which the full conference may be expected to assemble?

I think there would be little advantage in laying Papers at this stage, particularly since fairly full reports of the proceedings have appeared in the Press. I fear that the work of the committee is not sufficiently advanced to enable even an approximate date to be fixed for the opening of the Disarmament Conference.

Is the hon. Gentleman aware that the Sub-Commissions appointed by the Preparatory Commission have not yet answered the first question which they set themselves, namely, "What are armaments?" and if it takes 12 months to answer that question, how long will it take to arrive at some sort of conclusion?

The very fact that the work is not completed yet makes it all the more reasonable not to lay Papers.

asked the Financial Secretary to the Treasury whether, seeing that the staff of the Board of Inland Revenue is 1,000 less to-day than in 1922, that the revenue to be collected has largely increased, and that the staff are thereby obliged to perform an undue amount of overtime work, he will make an adequate increase in the strength of the staff?

My hon. Friend is misinformed as to the receipt of inland Revenue, which has decreased since 1922. The working of overtime has also diminished and will by degrees, it is hoped, be further reduced.

Can the right lion. Gentleman say whether there is any loss of revenue due to this diminution of staff?

I cannot answer that offhand.

Is it not a fact that the cost of the Customs and Excise and Inland Revenue Departments has been considerably increased?

I must have notice of that question.