asked the Secretary of State for War whether he will direct that the rule limiting the employment of ex-service men under the Royal Engineers at Corsham to applicants under 45 years of age be cancelled, in view of the fact that in Bristol there are over 2,000 ex-service men over this age who are qualified to carry out any class of manual labour?

Since my hon. and gallant Friend put his question on 31st January last, I have caused further inquiries to be made, and I am reinforced in the view that any relaxation of the rule would be at the expense of the speed with which the work in question should, in the public interest, be accomplished. Were the urgency of the work to permit of meeting my hon. and gallant Friend's suggestion, I should be most happy to do so. My information as to the number of available ex-service men over 45 years of age in the district does not correspond with the figure in the question.

Does not my right hon. Friend consider that a hard-and-fast rule like this is not really sound, as there are very many men over 45 years of age who are much more able to do a hard day's work than are some younger men?

I quite agree in principle, but I had to meet the view of the officer in charge of these works, based on experience. Perhaps it would please my hon. and gallant Friend to know that there are already 875 ex-service men on these works over 45 years of age.

Is the officer in charge over 45 years of age?

I do not know.

What kind of work of national importance involving great physical strain is it that men of 45 are not fit for?

The nature of the work has not yet been publicly revealed, but it is work of very great national importance, involving great physical strain.

Is it any harder than working in a pit? Is the right hon. Gentleman aware that men of 45 have performed that work quite satisfactorily over a long number of years?

I have already pointed out to the House that there are nearly 1,000 ex-service men over 45 engaged on this work.

Can we know exactly the kind of work that these people cannot do?

Is my right hon. Friend aware that of all the Government Departments, the War Office is the only one that insists on a hard-and-fast rule like this?

I would like my hon. and gallant Friend to appreciate the position, because we do our best for the ex-service men, and the rule only applies on a particular part of the work. If my hon. and gallant Friend would like to see it, I should be most ready to make arrangements for him to do so. Perhaps he will communicate with me again.

asked the Secretary of State for War the reasons why the cooperation of the War Office was refused in the production of the recruiting film entitled "The Spirit that is England," put forward by British Fine Art Pictures, Limited?

The synopsis of the film in question was carefully examined, but its value for recruiting purposes was not considered to be sufficiently high to warrant the granting of the extensive facilities requested in connection with its production.

Are the War Office prepared in principle to co-operate in the production of recruiting films?

Certainly, and we have done so.

Will the War Office be prepared to discuss the possibility of alterations in the present film?

I will certainly discuss them with my hon. Friend.

asked the Secretary of State for War particulars of the number of recruits required to complete the recruiting establishment of the infantry of the line at the present time.

On 1st February the deficit on the recruiting establishment of the infantry of the line, Regular Army, was approximately 7,000.

Does the right hon. Gentleman consider the progress that is being made satisfactory?

Yes, Sir, and it is far in excess of any estimate that I have given.

asked the Secretary of State for War why the Press were requested by his Department not to mention the movement of certain anti-aircraft units from Lichfield to London prior to a speech by the Secretary of State at the Guildhall in which he revealed that such movements had taken place?

The information in question was communicated by the War Office to the Press, and it was accompanied by a request that it should not be printed pending a statement to be made by me in the city of London. The request was made in order that representatives of the 1st Anti-Aircraft Division and of the City and County Territorial Associations might receive from me an explanation of the reasons for the move, and that all newspapers should be treated on an equal footing.

Was there any reason for keeping the actual news of this movement secret except the fact that the right hon. Gentleman was making a speech?

I have already answered that question. This information was communicated by the War Office to the Press, and it was requested that it should not be printed except after a certain hour when all newspapers could have it equally.

Does my right hon. Friend realise how much better it would be if we could have a little less "I" and a little more "We"?

asked the Secretary of State for War whether he can give any information in connection with the death of a trooper belonging to the 9th Lancers at Wantage, Berkshire; and what action he is taking in view of the statement made by the foreman of the jury at the inquest?

I have called for a report and will communicate with the hon. Member in due course.

asked the Secretary of State for War whether his Department now makes all contracts with manufacturers direct instead of through merchants as formerly, and whether, as the price is the same and acredited merchants have facilities for prompt and better delivery owing to the wide range of their business, he will resume the former practice, if necessary, stipulating that orders shall be placed as far as practicable in distressed areas?

There has been no change in the Department's policy, which is to buy on the most economical terms, and, generally speaking, it has been found that these are obtained by dealing direct with manufacturers. Other things being equal, preference is given to goods manufactured in distressed areas, and this policy can be controlled more effectively by purchasing direct from the makers than by placing orders through agents.

Is my right hon. Friend aware that that is not the general trade experience, and why should the experience of the War Office be different?

My hon. Friend suggests that there has been some change in policy, but the tenor of my answer is that there has been none whatever.

Not in policy, but in practice?

No, Sir.

asked the Secretary of State for War whether he is aware that in the National Service Guidebook no specific reference is made to the part which could most usefully be played by former non-commissioned officers; that such officers were in great demand in the early stages of the Great War; and whether he will arrange for such as are willing to volunteer to be specially registered for training purposes?

Arrangements already exist for the inclusion of eligible former warrant and non-commissioned officers in the Army Reserve. They are informed personally.

asked the Secretary of State for War (1) whether he can now make a statement as to the result of his consultation with other interested Departments as to the acceptance or refusal of offers of buildings for emergency hospitals in time of war; and whether he will state which these Departments are and who ultimately decides on acceptance or refusal;

(2) whether, in view of the fact that only two of 131 buildings offered for use as emergency hospitals in war have hitherto been inspected, he proposes to order the inspection of the rest of them; and whether it is the intention of the War Office definitely to decide what hospitals shall be used in case of war before hostilities commence?

The limited number of the buildings in question which appear suitable will be inspected. The buildings which, after inspection, are found suitable will be notified to the Ministry of Health or the Department of Health for Scotland and the Office of Works, and, subject to their agreement, will be earmarked. In the case of buildings found not to be suitable for the War Office, the suggestion is made that the offers might be renewed to the Ministry of Health or the Department of Health for Scotland. My hon. Friend will understand that the War Office is providing its own basic requirements for hospital accommodation independently of these offers.

Is my right hon. Friend aware that in cases where it has been asked that buildings offered for use as auxiliary military hospitals should be inspected, people have been told by some- one in his Department that there will not be any inspection until an emergency arises?

If my hon. Friend has any case in mind, perhaps he will be good enough to let me have particulars.

asked the Secretary of State for Scotland whether he can make any further statement about the efforts of the City Council of Edinburgh to preserve the street front of Taylors' Hall on Cowgate?

A meeting was held on the 6th of this month between the Department of Health and representatives of the corporation and of the National Trust for Scotland. Since then, one of the corporation's sub-committees has decided to recommend the corporation not to agree to a further proposal made by the trust for the preservation of the building. In the meantime, the corporation have been served with an order by the Dean of Guild Court requiring the dangerous upper structure to be partially dismantled and the buildings otherwise made secure.

Is it not a fearful reflection on the corporation that a building which has belonged to them for so many years is in such a disgraceful condition of repair?

Will the hon. Gentleman bear in mind that it is a Tory corporation?

asked the Secretary of State for Scotland whether he is prepared to set up a committee of inquiry to consider the working of the Fertilisers and Feeding Stuffs Act, 1926, with a view to its amendment to give more adequate protection to the agricultural industry, with particular reference to lime supplies?

In view of representations which my right hon. Friend has received, he is in consultation with the Minister of Agriculture and Fisheries, on the question whether a committee could be appointed for the purposes stated by the hon. Member.

Can the hon. Gentleman say what was the resolution of the conference held by the County Councils' Association on a short amending Bill to save this exploitation of the farmers by those who are alleged to be their friends?

Perhaps the hon. Member will put that question down. I do not know the result of that conference.

asked the Secretary of State for Scotland whether he will give the names of all the education authorities who have prepared provisional schemes for granting employment certificates under Section 2 of the Education (Scotland) Act, 1936; and the employment they have determined shall not be considered as beneficial?

Certain education authorities have prepared or are now engaged in preparing plans for dealing with applications for employment certificates, but as Section 2 of the Education (Scotland) Act, 1936, does not require the formal submission of these plans, particulars are not readily available. I am, however, making inquiries and will communicate the results to the hon. Member.

asked the Secretary of State for Scotland what were the numbers of old age pensioners who were in receipt of public assistance in Scotland as at 15th January, 1939; and the approximate annual cost of the relief so granted?

The number of old age pensioners in Scotland who were in receipt of public assistance at 15th November, 1938, the latest date for which the information is available, was 43,182. The cost of the relief granted is not available, nor is an estimate possible from the information available in my Department.

Is the hon. Gentleman aware that that public assistance becomes a very heavy burden upon the public assistance authorities, and will he make representations to the right authority with a view to providing adequate pensions for the old age pensioners?

That is another question, but I am afraid I could not undertake to get the figures, which I am advised would entail too much clerical work.

Will the hon. Gentleman use his influence with the Minister of Health in order to get the same information for us in England as he has now given for Scotland?

What proportion does that number of old age pensioners bear to the total number in Scotland?

It is about 16 per cent.

asked the Secretary of State for Scotland the number of persons receiving public assistance relief in Glasgow and Edinburgh, including Leith, for the years ended December, 1937 and 1938, respectively?

The number of persons, including dependants, in receipt of public assistance in Edinburgh, including Leith, at 15th December, 1937, was 14,334, and at 15th December, 1938, 14,317. The corresponding figures for Glasgow are 101,508 and 96,676.

Are any steps being taken by the Scottish Office to draw the attention of the Prime Minister to the serious state of Scottish affairs with regard to public assistance relief?

That seems to be a more general question.

Have any steps been taken by the Scottish Office to draw the Prime Minister's attention to this state of affairs?

I think that the Prime Minister is well aware of the state of affairs.

asked the Secretary of State for Scotland the number of old age pensioners in the counties of Stirling and Clackmannan, respectively, who have been compelled to seek public assistance during the year 1938?

Statistics in the precise form which the hon. Member asks are not available, but the numbers of old age pensioners in receipt of public assistance in the counties of Stirling and Clackmannan at 15th November, 1938, the latest date for which figures are available were 837 and 247 respectively.

Do these figures include the large burghs of Stirling and Falkirk?

No, they are for the counties.

Do they show an increase on the figures for the previous year?

I was only asked the figures for 1938. I cannot say whether they show an increase on the previous year.

Do you not know anything about your office?

asked the Secretary of State for Scotland, on what points of the report of the Poor Persons' Representation (Scotland) Committee is there a difference of opinion among the profession and local authorities; and what steps have been taken to reconcile their views?

There is a difference of opinion among the profession as to the practicability of the main proposals of the Committee for the provision of legal assistance to poor persons and among the local authority associations as to the recommendation that local authorities in "large towns" should provide and remunerate a "public defensor." My right hon. Friend, in consultation with the Lord Advocate, has tried to secure a measure of agreement, but in present circumstances he can see no prospect of early legislation on the subject.

asked the Secretary of State for Scotland the number of school classes in Glasgow with 50 or more pupils?

On 13th January, 1939, there were in Glasgow 165 classes with 50 pupils, and 62 with over 50 pupils, on the roll.

Have the Scottish Office any particular plans with regard to an early reduction of the number of classes with over 50 pupils?

As the hon. Member knows, our code of regulations prescribes that the number of pupils in a class should not exceed 50, unless in exceptional circumstances. I think the most common reason in Glasgow for these classes of over 50 is the rapid transfer of the population from one part of the city to another. The number is only about one-half what it was last year.

Does the figure referred to by the hon. Gentleman mean 50 on the roll or 50 in attendance?

I said there were 165 classes with 50 pupils exactly, and 62 with over 50.

I am asking whether that means 50 in attendance or 50 on the roll, because that makes an average difference of three to four in the size of classes?

It is on the roll.

Why is it that these Socialist authorities always lag so much in progress in anything like education?

Is the hon. Gentleman aware that since the Socialist majority came into being the number of big classes has been reduced?

asked the Secretary of State for Scotland whether the bodies to be consulted regarding the economic life of the Scottish Highlands and Islands will include the crofters' unions?

My right hon. Friend has already received a deputation from the Crofters and Smallholders Association representing parts of the counties of Inverness and Ross and Cromarty and he is at present considering a request to hear the views of crofters' unions of other parts of the counties and the Islands.

asked the Secretary of State for Scotland whether he has considered the resolutions passed and sent to him by the Conference of Crofters' Unions at Mallaig on 2nd February, regarding the policy required to meet the needs of the Scottish Highlands and Islands; and whether he intends to comply with the requests made to him?

My right hon. Friend has received a copy of the resolution referred to by the hon. Member. In the meantime he is not in a position to add to the terms of the answer which he gave on Tuesday last to the hon. Member for East Fife (Mr. Henderson Stewart) and the hon. and learned Member for Greenock (Mr. Gibson) on the subject of the report of the Highlands and Islands Committee.

asked the Secretary of State for Scotland the number of children who are in receipt of free meals in the schools in the county of Clackmannan for the years 1937 and 1938, respectively?

I am informed by the education authority that there were no children in receipt of free meals in the schools in the county of Clackmannan in the years ended 31st July, 1937, and 31st July, 1938.

asked the Secretary of State for Scotland whether he will make a statement regarding the housing situation in Alloa; and what proposals have been put forward by the Scottish Office and the local authority to deal with it?

According to the latest information submitted by the town council, 308 new houses are required to replace unfit houses and to accommodate families now overcrowded. The town council have placed contracts for the building of 288 houses, of which 114 were under construction at the end of January.

asked the Secretary of State for Scotland whether he has any proposals to make available for working people, including those who are unemployed, the produce of the herring-fishing industry, especially the Clyde fishing industry, particularly during periods of abundant supply; and what arrangements he has made, or has in contemplation, to create an effective home market for herring and an effective demand?

I would refer the hon. and learned Member to the Report of the Herring Industry Board for the year 1937–38, which deals with the home market for herring and the measures taken to develop it. The recently reconstituted board are giving consideration to the possibility of increasing the markets for herring.

asked the Secretary for Mines whether the Asthma Research Council are taking active steps to investigate causes of asthma among coal miners; and will he supply figures as to the incidence of asthma among these workers?

I have been asked to reply. So far as I am aware, the Asthma Research Council is not making any special investigation with reference to coal miners. As regard the second part of the question, I regret that there are no official figures of the incidence of asthma among coal miners.

Is it the intention of the Department to make such an investigation among coal miners, because it is a very imperative investigation?

The hon. Member had better put that question down to my right hon. Friend. This question refers to the Asthma Research Council, which is an independent body.

asked the Secretary for Mines whether he will inform the House of the terms of the Anglo-German coal export agreement arrived at by representatives of the British and German coal industries?

asked the Secretary for Mines whether he can furnish details of the agreement recently concluded between Germany and British coalowners for the regulation of markets; and whether there is provision for an increase in British coal exports and any safeguards to prevent German coal entering markets outwith the scope of the agreement?

I cannot add anything to the statement which my right hon. Friend made in reply to a question by the hon. Member for Pontypool (Mr. A. Jenkins) on 31st January.

When will the hon. Gentleman or his right hon. and gallant Friend be in a position to give the House vital information about one of our biggest export industries?

If the hon. Member will study the reply given on 31st January, he will see that my right hon. and gallant Friend indicated that the alignment of points of view achieved by the coal industries of Germany and the United Kingdom was a preliminary to and should facilitate further negotiations for an international coal agreement between all the principal European coal producing countries. Pending the result of those negotiations nothing can be added to that reply.

Can the hon. Gentleman give information as to the precise details of the agreement between British and German coalowners, irrespective of the further negotiations that are likely to ensue?

This agreement, as I understand it, is clearly a provisional arrangement, and it will depend entirely on further negotiations whether the conditions obtaining in it can be implemented. I understand that my right hon. and gallant Friend is not prepared to give any further information.

Are we to understand that no part of the agreement will become operative at present?

Yes, that is so.

In the negotiations which are now proceeding will there be a decision on quantities and prices? If so, will the hon. Gentleman undertake to give particulars as to quantities and prices at the earliest possible date?

That is not the question on the Paper.

asked the Secretary for Mines the estimated number of boys under 16 years of age employed in the coalmining industry for the 12 months ended the last convenient date?

The returns for 1938 are not yet completed, and the hon. Member will accordingly find the latest available information on pages 144 and 145 of the Secretary for Mines Annual Report for the year 1937.

Is any legislation contemplated for the protection of these young persons?

The hon. Member had better put that question down.

asked the Secretary for Mines (1) the approximate amount of light and heavy oils, respectively, produced from British coal during 1938; and how these amounts were divided between the various processes;

(2) the retained imports of refined motor spirit and heavy oils, respectively, in 1938, including quantities obtained from home refined crude?

I regret that the information asked for is not yet available.

asked the Secretary for Mines the amounts of motor spirit and Diesel oil, respectively, produced from shale in the United Kingdom in 1938?

By courtesy of Scottish Oils, Limited, I am able to inform the hon. Member that during 1938 the company produced about 7,000,000 gallons of motor spirit and about 15,000,000 gallons of Diesel oil.

asked the Secretary of State for Dominion Affairs whether he will obtain any assurance from the New Zealand Government that under their new system of controlling imports they will not reduce the imports of Lancashire textiles below the average level of recent years?

The probable effect upon the United Kingdom export trade to New Zealand of the system of import licences which has recently been introduced in New Zealand is at present under examination by the Government here, and I am not at the moment in a position to make a statement.

asked the President of the Board of Trade whether he is aware that only about 50 men are employed on the preliminary work for the steelworks on the Palmers site in Jarrow; and whether, in view of the national emergency and the long delay that has taken place, he will make representations to the directors concerned with a view to hastening the construction of these works?

The New Jarrow Steel Company inform me that they are anxious to make progress as rapidly as possible, and that there will be no delay on their part.

While admitting that that rather takes away my breath, may I ask whether the right hon. Gentleman thinks that at the present rate of progress this steel yard will be about ready for the next slump but one?

I am sorry that the hon. Lady nearly lost her breath—

For the first time for years.

I understand that the steel for the erection of these buildings has been ordered.

We have had the Minister's promise since 1937.

asked the President of the Board of Trade, how many shipyards have now been closed through National Shipbuilders Security, Limited; what number of berths and representing what tonnage capacity; the capacity of existing yards, berths and tonnage; and whether he is satisfied that the existing capacity is adequate for the nation's needs in time of war?

As regards the first part of the question, I understand that the berths purchased by National Shipbuilders Security, Limited, have a capacity of about 1,350,000 gross tons annually of merchant shipping and that there remains an annual capacity of about 2,000,000 gross tons in the existing yards, excluding yards specialising in naval work. The answer to the last part of the question is in the affirmative.

Does the right hon. Gentleman really think it adequate in the present dangerous situation that we should have 2,000,000 tons less shipping, and 2,000 fewer ships? Has not the time arrived for an inquiry into the activities of National Shipbuilders Security Limited?

As the hon. Lady knows, the position with regard to shipbuilding is at present under review, but I think that a capacity for building 2,000,000 tons—leaving aside specialist yards—would be sufficient, and that the limiting factor is more a question of the amount of labour available.

Has the right hon. Gentleman read the criticism by Lord Maclay, once the Minister of Shipping, of the closing down of British shipyards, and has he any comment to make?

I have also read the comments of people who have been actively engaged in shipping very much more recently than Lord Maclay, who take a very different view from his.

asked the President of the Board of Trade whether he has any information as to the national subsidies provided for shipbuilding firms in Germany, Holland and Japan; and whether he has formed any estimate of the loss in unemployment benefit, Poor Law relief, national taxation, and local rating which this country has to find in indirect subsidy as a result of the loss of wages upon every £1,000,000 worth of shipping orders sent by British owners to foreign yards?

I am not aware of any national subsidy for shipbuilding in Holland, but I understand that in the other two countries mentioned financial assistance of one type or another is provided by the Government for shipbuilding. The answer to the second part of the question is in the negative. The position of the shipping and shipbuilding industries is under consideration by the Government at present.

Regarding the second part of the question, to which the right hon. Gentleman said the answer was in the negative, is he not aware that the Ministry of Labour used to have all these figures in their possession, and could he not get them and be a little more communicative to the House on this matter of great public importance?

The hon. Member must know that it is quite impossible to make any accurate estimate of this kind. The only estimate one can make is as to the amount of money which is being spent in building ships abroad and building them at home.

Is the right hon. Gentleman not aware that this country pays indirect subsidies in this matter, and that the Ministry of Labour have an estimate of the cost to this country in Poor Relief, unemployment benefit, and so on, and could he not get the figures and let us see them?

I will give the hon. Member any figures I can, but he will realise that it is impossible for me to give an estimate respecting the rating burden, for example, without knowing in what yards the ships would be built if they were not built in foreign yards.

Does the right hon. Gentleman not realise that the loss to this country is not only a loss represented by the actual payments made in dole and public assistance, but the loss of that very skill which the right hon. Gentleman himself was deploring a few moments ago?

I quite realise that, but with all these imponderables which cannot be valued, I cannot think that it would be possible to make a calculation which would be of very great value.

asked the President of the Board of Trade whether he is yet in a position to make a statement on the Government's policy with regard to shipping and merchant shipbuilding?

asked the President of the Board of Trade whether he has any statement to make on the proposals of the Joint Shipping Policy Committee of the Chamber of Shipping and the Liverpool Steamship Owners' Association for assisting the Mercantile Marine?

I am not able to add yet to the reply I gave on 31st January to the hon. Member for Wallsend (Miss Ward).

In view of the importance of this statement, may I have an assurance from my right hon. Friend that the House will have an opportunity of discussing the whole statement—not on an Opposition Vote of Censure upon the Government?

That question should be addressed to the Leader of the House.

I have addressed it several times to the Leader of the House.

If the Leader of the House cannot answer the question, I cannot.

asked the President of the Board of Trade whether he is aware that during the period August to December, 1938, 22 British-owned vessels with a gross weight of 66,810 tons were sold to foreign shipbreakers for scrap-iron purposes; if he has any information to show how much of the scrap from these vessels goes directly or indirectly to Germany; and why this export is permitted during a period when scrap-iron has had to be imported by Britain from the United States of America?

According to the records of the Registrar-General of Shipping and Seamen, the aggregate gross tonnage of British vessels of 100 tons gross and upwards which were sold to foreign owners for the purpose of being broken up for scrap during the period August to December, 1938, was 44,870 tons. Of these, two vessels with an aggregate gross tonnage of 416 tons were sold to Germany. So far as I am aware, there was no shortage of scrap-iron and steel in this country during the period in question. The imports from America were in pursuance of contracts made in the previous year.

Can the right hon. Gentleman say from his records, or from information in the possession of the Overseas Trade Department, how many of those vessels which were not sent direct to Germany were sent to countries adjacent to Germany to be scrapped and the scrap sold from there into Germany; and is it right in the national interest that we should be supplying raw material for German armaments?

As I said, the only direct sale to Germany was an aggregate gross tonnage of 416 tons. I could certainly get the figures mentioned by the right hon. Gentleman, but we have no evidence that, when these vessels are sold to adjacent countries and scrapped, the scrap is in fact being passed on to Germany.

Would my right hon. Friend give this matter further consideration, seeing that it is hardly a sound business proposition to be exporting ships for other countries to break up when we have facilities for breaking them up here, and are importing from those countries at the same time?

The whole question of the scrapping of ships must form part of the investigations which the Government are pursuing now into the question of shipping and shipbuilding.

Will the Minister tell the hon. Member for Hallam (Sir L. Smith) not to foul his own nest?

asked the President of the Board of Trade whether he is aware that the tinplate works of Richard Thomas at Lydney have been closed for some weeks in connection with the rationalisation which is going on in the industry; and whether, in view of the large amount of unemployment which this is causing in this part of the Forest of Dean, he proposes to do anything in the matter?

I understand that these works were closed in December because of the decline in the demand for tinplate. As regards the general situation in the industry, I would refer the hon. Member to the answer I gave on 31st January to the hon. Member for Llanelly (Mr. J. Griffiths).

Is it not a fact that men have already gone from Lydney to South Wales, and does not that indicate that there is something more than trade depression involved in this matter?

It is exactly that point which is involved in the answer to which I referred my hon. Friend. We are awaiting the report of a committee representing both employers and employed.

asked the President of the Board of Trade particulars of the number of cinematograph exhibitors and renters who have been unable to comply with the quota provisions of the Cinematograph Films Act during the 12 months ended to the last convenient date; and the number of cases in which exemption certificates have been applied for and granted?

Ten renters were in default in the renters' quota year ended 31st March, 1938, but no exemption certificate was issued. Seventy-one exhibitors were in default for the year ended 30th September, 1938, including 42 in respect of part of the year only. The Cinematograph Films Council have not yet completed their consideration of these cases. I am afraid I cannot give the exact number of applications made for certificates. In general, all renters or exhibitors in default are given an opportunity of claiming a certificate, and practically all do so.

Are the exemption certificates considered by the right hon. Gentleman or by the Advisory Council?

They are considered in the first place by the Advisory Council.

Is there an appeal to the right hon. Gentleman?

Is the right hon. Gentleman satisfied with the progress made by the British film industry under the present Act?

Yes. As I have told the hon. and gallant Member, the object of the new Act was to produce good films in this country, and I think the record of the last 12 months shows that there has been great progress.

Was not the object to encourage the British film industry?

It was to encourage the British film industry to make good films.

The British film industry, as the right hon. Gentleman must be aware, can make very good films.

asked the President of the Board of Trade whether any agreements arrived at in the negotiations now proceeding between the Federation of British Industries and the Reichsgruppe-Industrie are to be embodied in the form of cartels; and whether such undertakings will be dependent on antecedent approval by this House?

I am not in a position to forecast the contents of any agreements that may be concluded as the result of the projected negotiations between certain British industries and their German competitors. They will, no doubt, vary according to the circumstances of the particular industries. I cannot say in advance whether any of these agreements will be such as to require Parliamentary approval.

Will these negotiations be conducted by representatives of the Federation of British Industries as such, or by representatives of each industry and their opposite German numbers? Further, may I ask whether in any agreements that may be reached the political considerations of such agreements will be considered before they come into effect?

The answer to the first part of the question is, I think, that there will be first of all a general discussion between representatives of the Federation of British Industries, and the Reichsgruppe, and thereafter discussions between individual industries. With regard to the second part of the question, I am certain that representatives of the Federation of British Industries will have the national as well as the sectional interests in view.

asked the President of the Board of Trade whether he will make a statement concerning the conditions of British trade with Manchuria; and whether any plans are being discussed to counteract the difficulties in this connection arising from the Japanese control of foreign exchange?

United Kingdom exports to Manchuria are undoubtedly hampered by the exchange-control system in force in that territory, for the purposes of which transactions with Japan are not treated as foreign. These exports, which are of relatively small value, have followed a fluctuating course; but in general have tended to decline in recent years. Other British interests, such as oil, shipping and insurance have also been adversely affected. In reply to the second part of the question, I can assure the hon. Member that His Majesty's Government are watching the whole position closely.

asked the President of the Board of Trade the number and value of German motor vehicles imported into this country during 1938?

During the year 1938, total imports into the United Kingdom of new private motor cars consigned from Germany numbered 3,367, the declared value being £327,000. Of these, 3,183, valued at £286,000, were imported during the first four months of the year. The number of new commercial vehicles imported from Germany during 1938 was 137, valued at £17,000.

How many of those motor cars were bought by members of the working class?

asked the President of the Board of Trade whether he is aware that plans are being prepared for an intensified output of cheap German motor cars for export; that the production of the cars will be heavily subsidised; that negotiations are now proceeding between motor interests in this country and the officials of the Government factory in Brunswick concerning a supply to this country of the subsidised car; and whether any action is to be taken by prohibition or otherwise to protect the interests of British producers against a form of competition likely to lower the output of British cars and the standard of life of British workers?

asked the President of the Board of Trade whether his attention has been called to the proposal to increase the sales of cheap German motor cars in this country; whether the British motor industry has yet taken any advantage of the additional facilities with regard to production placed at their disposal in the Finance Act, 1938; and whether the British motor industry will be represented in the forthcoming trade talks between British and German industries as a whole?

My attention has been drawn to a newspaper report of proposals for the export of cheap German motor cars to this country in 1941, but I am not in a position to confirm it. It is open to the motor manufacturing interests in this country to apply to the Import Duties Advisory Committee for further protection, but up to the present the committee have not given notice of any such application. I am not yet in a position to say which particular British and German industries will be represented in the forthcoming discussions.

Is it not a fact that the motor industry could not apply to the Import Duties Advisory Committee until after the imports take place, and is not this a form of competition that ought to be met before it becomes serious?

My hon. Friend's question is a little premature in view of the fact that the cars have not yet been produced, and I understand that at the very earliest they cannot be exported for two years.