asked the Prime Minister what reply has been received from the Japanese Government to the protest of His Majesty's Government against their action in prohibiting exports from North China unless the foreign exchange proceeds are sold against Japanese federal reserve banknotes at is. 2d; and whether the foreign trade of Tientsin is still affected by this prohibition?

As the reply is necessarily rather long, I will, with my hon. and gallant Friend's permission, circulate it in the OFFICIAL REPORT.

Following is the reply:

The reply of the Japanese Government stated that the measures taken were intended to secure that the Federal Reserve Notes, which were the only legal currency in North China, should adequately fulfil the functions of a trade currency. It was not the case that general control of trade and foreign exchange transactions in North China was under contemplation. Endorsement of transactions would be obtained without discrimination provided that traders conformed with the prescribed procedure, and British interests would meet with no unfair obstacles. The Japanese Government considered that no question of treaty rights could arise in connection with such measures, because the Provisional Government had full sovereign rights in the matter of import and export systems. For these reasons the measures in question did not conflict with the Japanese assurances that the interests of third Powers would be respected, and the Japanese Government were therefore justified in co-operating in the establishment of the new system.

These measures continue seriously to affect the foreign trade of Tientsin. His Majesty's Government regard the Japanese reply as unsatisfactory, and further strong representations are under consideration.

asked the Prime Minister whether, having regard to the impending seasonal rise in the level of the Yangtse, he intends to send British merchant vessels up the river above Shanghai under convoy of vessels of His Majesty's Navy?

The whole question of the freedom of navigation on the Yangtse is under discussion with the competent Japanese authorities, and I am not at present in a position to make a statement.

asked the Prime Minister whether he has received any report with regard to the bombing of Chuanchow, north of Amoy; whether any British interests were affected; and what is the nature of the damage to life and property?

No, Sir, but a report has been called for.

asked the Prime Minister particulars of the reply received from the Japanese Government to the Note pre sented by His Majesty's Ambassador on 14th January last, relative to the occupation of Inner Mongolia by Japanese troops in violation of the obligations under the Nine-Power Treaty?

I would refer the hon. Member to my reply to my hon. Friend the Member for Kidderminster (Sir J. Wardlaw-Milne) on 13th March, to which I have nothing to add.

Can the Minister say whether any similar reply has been received by the French or the United States Governments?

We should have to ask the French and the United States Governments.

asked the Prime Minister whether he will consider proposing to the League of Nations that representations should be made to the Japanese Government with regard to the continued slaughter of civilians by bombing at Chungking and other places?

As I informed the hon. and learned Member for Kingswinford (Mr. A. Henderson) on 15th May, strong representations have already been made on this subject by His Majesty's Government and other Governments. It will, moreover, be recalled that the League of Nations made clear its attitude in the resolution passed by the Council in January last, condemning recourse to methods which are contrary to the conscience of mankind and to the principles of international law. In these circumstances my Noble Friend is not convinced that a further initiative is required.

Can the right hon. Gentleman say how many thousands of civilians were killed in this action?

I gave a statement of the number who, I regret to say, were killed, in a recent reply which I gave.

asked the Prime Minister whether, in view of the Government's declared policy against aggression, the Government will instruct their representative on the Council of the League of Nations to advocate at Geneva the prohibition of the export and sale to Japan of petroleum and of minerals essential for carrying on war in China?

The appeal of the Chinese Government is on the agenda of the League Council at its forthcoming session, and it will accordingly be discussed by the Council as a whole. I cannot anticipate the course of those discussions.

What instructions have been given to the British representative?

My Noble Friend will be attending the Council himself, and I am afraid that I cannot say anything more at the present time.

Are not the Government aware of the huge quantities of nickel ore being sent from Canada to Japan, and is it not time that some action was taken?

No doubt consideration will be given to the point to which the hon. Member refers.

Is it not the case that when the British Government send a delegate to a conference they instruct him on the line he is to take, and I want to know whether they have given this delegate instructions in the sense of what is stated in this question?

I said in my original answer that there will be discussions on this question, but that I cannot say what my Noble Friend will do at Geneva.

asked the Prime Minister whether replies have been received to the inquiries made relative to the British subjects being detained as prisoners in Spain; and will he give particulars?

There are four prisoners whose cases are being dealt with by His Majesty's Ambassador. Sir M. Peterson is pressing for their release or for details of the charges against them.

Are they all civilian prisoners?

Is it intended that these prisoners shall take part in the victory march, along with the British Ambassador?

Has the right hon. Gentleman any information about Frank Ryan, who is now in hospital there?

There is this other prisoner, Frank Ryan, who is a citizen of Eire and whose case is being looked after by the Eire Minister in Spain. He is reported to be detained on a civil charge.

asked the Prime Minister whether, in view of the attendance of His Majesty's Ambassador at the victory parade in Madrid, he has made, or will make, representations to the Spanish Government respecting the treatment of prisoners arrested in connection with the recent war; and whether he will make the attendance contingent on an assurance that these prisoners will be released?

As the House is aware, His Majesty's Government have urged a policy of clemency upon the Spanish Government, but the answer to the hon. Member's suggestion must be in the negative.

Does the right hon. Gentleman not feel that as the Madrid Government are so desirous of the presence of our Ambassador at this parade they would be susceptible to our representations on this matter; and could he not at least ask our Ambassador to make particular representations to the Madrid Government on this case?

As I have said, His Majesty's Ambassador has urged that there should be clemency, and assurances have been received from the Spanish Government that only criminals will be punished.

Is the right hon. Gentleman aware that these prisoners in Spain include a considerable number of men of the International Brigade, towards whom His Majesty's Government have a special responsibility since they were dismissed from the service of the Republican Army on the faith of the undertaking of the Non-intervention Committee that they were to be sent home or to places of safety, and that if they are allowed to go to certain death in Italy or Germany their blood will be on the head of His Majesty's Government?

The hon. Lady has exaggerated the responsibility of His Majesty's Government in this matter, though none of us wish to forget the plight of these unhappy people. I have already received communications on the subject from hon. Members opposite.

Does the right hon. Gentleman not think that it is even more necessary to secure the release of these prisoners than that our Ambassador should attend the parade?

Has the right hon. Gentleman any information from the Ambassador as to the way in which the prisoners, both Spaniards and others, are being treated by the Spanish Government?

If the hon. Gentleman likes to put down a question I will endeavour to get him an answer.

asked the Prime Minister whether he is satisfied that arrangements have been made by the Italian Government to evacuate all troops from Spain immediately the victory march is over?

Yes, Sir.

asked the Prime Minister whether any reply has yet been sent by His Majesty's Government to the German Government relating to Herr Hitler's pronouncement that he was ready to negotiate with His Majesty's Government on the naval question; and whether it is also proposed to convey to Herr Hitler that this country has no desire to enter into competition with Germany either in armaments or economics?

The answer to the first part of the question is in the negative. The terms of the reply are still under consideration.

Has the attention of the right hon. Gentleman been drawn to the second part of the question?

I said that the terms of the reply are still under consideration.

asked the Prime Minister whether, in view of the unilateral denunciation of the Anglo-German Naval Treaty by the German Government, His Majesty's Government intend to consult the other signatories of the London Naval Treaty with a view to modifying those clauses of the Treaty limiting the guncalibre and tonnage of new cruiser construction?

I would refer my hon. Friend to the reply I gave on 8th May to the hon. and gallant Member for Nuneaton (Lieut.-Commander Fletcher).

asked the Prime Minister whether, in view of the protests and denials of the German Government respecting certain German subjects recently expelled from this country, he will supply information respecting the reason for their expulsion; and whether he has intimated, or will intimate, to the German Government the nature of our complaint against these men?

The ground for the expulsion of these persons was that His Majesty's Government had reason to believe that they had indulged in actions which the authorities could not condone. An intimation to this effect was conveyed to the German Chargé d'Affaires in London.

Were the precise details of the charge conveyed to the German Government?

I said that an intimation to this effect which I have given was conveyed to the German Chargé d'Affaires.

Will the right hon. Gentleman give to the House particulars of the information with a view to exposing the falsity of the denials of the German Government?

It would not be in the public interest to give more precise information as to the nature of the action complained of.

asked the Secretary of State for Air the approximate weight of woollen products, clothing, blankets, etc., supplied to his Department for the years 1937 and 1938, respectively; and the estimated weight of similar products for the present year?

The figures for which the hon. Member asks are, approximately 723 tons for 1937, 2,000 tons for 1938 and 1,880 tons for 1939.

Is the right hon. Gentleman able to give us any percentage of the home-produced wool included in those amounts?

No, Sir, but I will inquire into the matter and let the hon. Gentleman know.

asked the Secretary of State for Air whether he can make any statement as to the number and value of contracts placed in Scotland in the past three months?

The records of contracts placed by my Department are not maintained on a geographical basis, and I regret, therefore, to be unable to furnish the information which my hon. and learned Friend requires. I am, however, able to say that, so far as the Special Areas in Scotland are concerned, contracts, excluding sub-contracts, to the total value of £686,000 were placed during the three months in question.

While thanking my right hon. Friend for his reply, which indicates a large increase in Air Ministry work in Scotland, may I ask, in view of the fact that for very proper reasons a great deal of that work has had to be placed in the west and centre of Scotland, he will give every facility for sub-contracts being spread over the east of Scotland, so that the whole of that country may benefit?

Yes, Sir, I will have regard to that consideration.

asked the Secretary of State for Air whether he has formed any estimate as to the number of young men between the ages of 17 and 20 years for whom work could be found during the next three years on aerodrome construction and maintenance and other work of a similar character connected with the Air Defence programme in rural areas?

No, Sir. I am afraid it is not practicable to make such an estimate.

Can my right hon. Friend give any estimate of the number of people of any age who could be employed on work of this kind?

I have not examined this point, but it is difficult to arrive at any estimate.

asked the Secretary of State for Air what progress has been made in the enrolment in Liverpool of officers and men for service in the Royal Air Force and its auxiliaries; and what progress has been made in the training at Speke airport?

During the six months ended 30th September, 1938, 915 airman recruits from the Liverpool area were sent forward for acceptance for service in the Royal Air Force; the corresponding figure for the six months ended 31st March, 1939, was 1,276. I am unable to give figures relating to officers for the Regular Air Force, as applications are dealt with centrally at the Air Ministry and there is no separate record of those who come from the Liverpool district. The Auxiliary Air Force flying squadron at Speke is up to strength and has a waiting list. I am informed that its training has progressed very satisfactorily. Two of the three balloon squadrons already have their full establishment of airmen, although one of them was only formed as recently as 1st March last. Recruiting for the third squadron is progressing satisfactorily.

asked the Secretary of State for Air what expenditure, approximately, has been incurred to date under the Civil Air Guard scheme; how many females have been trained as pilots; what proportion of the pilots trained are suitable to join the Royal Air Force in emergency; and how the cost of potential first-line pilots produced under this scheme compares with the cost of those produced by other methods?

The sum of £106,000, approximately, has been expended to date on the Civil Air Guard scheme. Of 2,428 Civil Air Guard pilots holding "A" licences at present, 93 are women who have been trained under the scheme. The categorisation of "A" licence holders for service in emergency is now proceeding, but I am not yet able to state the numbers which will be available in the various categories. The scheme is not designed to produce pilots ready to take their place immediately in an operational squadron, but provides a pool of pilots, a proportion of whom after further training would qualify as Royal Air Force pilots; others as flying instructors or ferry pilots; the remainder would perform such duties in connection with aviation as may be allotted to them. The cost per hour to the State of giving elementary flying instruction to a member of the Royal Air Force Volunteer Reserve is higher than the subsidy payable for the training of a Civil Air Guard member up to the highest category.

Is it not a fact that the Civil Air Guard scheme is the only way in which young men of the towns can learn to fly at small cost?

Yes, Sir.

What is the object of teaching women of 49 to fly?

What will be the position of women pilots in time of war?

In answer to both supplementary questions I would say that in a certain number of cases women will undoubtedly be of value in ferry pilot work or instructional work, but I would not like to lay down any hard-and-fast rule as to the degree of utility that women pilots might show in time of war. Others who are trained to a certain degree of proficiency will be of use by virtue of their knowledge as pilots.

asked the Secretary of State for Air whether he will secure that men under 21 years of age, at present serving in the Civil Air Guard, and particularly those who have gained an A licence, shall, if called up under the Military Training Bill, do their service in the Royal Air Force?

Men under the age of 21 will have an opportunity of expressing a preference for carrying out training with the Royal Air Force; and members of the Civil Air Guard should be able to present qualifications and experience which will make them particularly suitable candidates for such vacancies as exist.

May I take it from the answer that, in cases where men have even got so far as having an A licence, they are not certain of getting into the Royal Air Force?

We shall have only a limited number of vacancies in the Royal Air Force Volunteer Reserve, and we cannot, therefore, undertake to accept all applicants. We do not know how many applications there will be, but obviously applicants who have been in such an organisation as the Civil Air Guard should be able to have a qualification which would add to their chances of being accepted.

Will this apply to those who made bona fide applications before the date of the conscription Measure? Will their applications be accepted in preference to those which were made later?

I will look into that point.

If all Civil Air Guard pilots of suitable age are not fit for absorption in the Royal Air Force, what is the use of producing another crop of part-trained pilots?

There are other values in the Civil Air Guard than that. As my hon. and gallant Friend will have seen, a communiqué issued by the Commissioners of the Civil Air Guard says that from now onwards new Civil Air Guard members must be over 21 years of age.

asked the Secretary of State for Air how many of the 20 and 22 scheduled services of Imperial Airways, Limited, during the months of February and March, respectively, from this country to Karachi arrived on time?

Of the 20 services which left Southampton for Karachi during February, nine arrived on time; in five cases the delay was less than two hours and in no case did the delay amount to 24 hours. Of the 23 services during March, six arrived on time; in eight cases the delay was less than 24 hours, and in the remaining nine cases the delay varied from 24 hours 19 minutes to 72 hours 58 minutes.

asked the Secretary of State for Air whether he has any further statement to make on the proposed erection of a factory for making aeroplane steel at Edale in the Peak District?

No, Sir. I am not yet in a position to add to the statement made last Friday by my right hon. Friend the Minister of Health.

Can the Secretary of State refer to the activities of the firm in finding alternative sites?

I think they are engaged now on that matter.

asked the Secretary of State for Air whether his attention has been drawn to the fact that shares in Imperial Airways, Limited, were quoted at 22s. 3d. on 31st March, 1938, at 25s. 3d. in November last, and at 29s. last week before his announcement; and what is the basis on which he has decided to buy them out at 32s. 9d. per share?

asked the Secretary of State for Air whether he is aware that the market price of ordinary Imperial Airways shares stood at 25s. 3d. on the evening before the merger was announced on nth November, 1938, and at 29s. on 12th May, 1939, when the decision was made that they were to be bought for 32s. 9d.; what was the reason for offering so high a price; and what is the general policy of the Government in purchasing shares of companies which have been increased in value by subsidies given in recent years?

The price was settled by negotiations between representatives of the company and of the Air Ministry and Treasury, the object being to arrive at a price which should be fair both to the new Corporation and to the shareholders. It is not possible to give in answer to a question all the factors which had to be examined, but, broadly speaking, the procedure was as follows:

The valuation made by independent accountants on behalf of the Government after consultation with the firm's accountants showed that the value of the net tangible assets of the company and its 100 per cent. subsidiary companies as at March, 1938, was not less than £2,484,000. Over and above these tangible assets the company had a claim for an additional payment in respect of development expenditure and of plant, premises and equipment, which had been written down to a nominal value, but are still in use and have substantial value, and generally the value of the organisation built up by the company in this country and overseas. After discussion, an addition of about £175,000 to cover these items was agreed, making a total figure of £2,659,086. On this method of arriving at the price the market quotations of the shares, which have fluctuated widely in recent years, were not material.

As regards the third part of the question asked by the hon. Member for Romford (Mr. Parker), a fair and reasonable offer would be made in relation to the circumstances of the particular one.

Does not the right hon. Gentleman think that, in the first place, the fact that this company has received a subsidy for a number of years ought to have been taken into account in computing the purchase price, in terms of the assets; in the second place, does he not think that if the thing had worked out in the other way and the share value had been far higher than the computation of the assets, the company would have been unwilling to part with its assets at a figure below the market value of the shares?

As to the second point, obviously I cannot answer a question about what the company would have done. As to the subsidies, they were, as the right hon. Gentleman knows, paid to the company in respect of specific services rendered by the company as the instrument of His Majesty's Government. The right hon. Gentleman referred to the price of the shares and rather suggested that it was the criterion in arriving at the price. I dare say he knows the fluctuations of that price. I am informed that last year the highest price was 62s. 6d. and the lowest 24s.

Can my right hon. Friend tell the House with whom the conversations took place outside the Government before this price was fixed?

I am afraid I do not quite understand my hon. and learned Friend's question.

I merely wanted to ask whether any conversations took place with financial interests, and, if so, who they were, before this figure was fixed.

The only people we consulted were the Government's own advisers and the firm of accountants whom they employed.

Who were the advisers in this case?

Is this conscription of wealth?

Has the right hon. Gentleman seen the criticisms which the City has poured upon this transaction; and is the transaction a reflection of the statement made at a dinner of aircraft manufacturers that restrictions on public expenditure were now considerably less than they had been until recently?

I have no knowledge about the dinner, but, as regards public opinion on this matter, I should say that it has received in the Press, with one or two exceptions, general approval.

Is not the right hon. Gentleman aware of the very strong feeling that, when the value of shares has been built up by subsidies, that value ought not to be paid for by the taxpayer a second time over?

I have given an account of the way in which the figure was arrived at, and have also pointed out that the subsidies were paid in respect of specific services rendered by the company. I would remind the hon. Gentleman that you cannot take as the value for such a purpose what happens to be the price of a particular number of shares which are on the market at a particular time.

asked the Parliamentary Secretary to the Admiralty whether he can give the approximate weight of woollen products, clothing, blankets, etc., supplied to his Department for the years 1937 and 1938, respectively; and the estimated weight of similar products for the present year?

Exact figures are not available, and could only be obtained by a disproportionate amount of work. Very approximate figures for 1937 and 1938 are 1,200,000 lbs. and 1,350,000 lbs. respectively. The estimated corresponding figure for 1939 is approximately 1,600,000 lbs.

In these days of demands for a square deal in industry, will not the Government insist on a high percentage of home-produced wool being used under these Government contracts, and so give a square deal to the sheep farmers of this country?

asked the Parliamentary Secretary to the Admiralty whether he is now in a position to make a statement with reference to the restoration of a training ship for Royal Naval Volunteer Reserve recruits in the Manchester area?

I would refer my hon. Friend to the reply which my hon. and gallant Friend gave to him on 20th February, to which I have nothing to add.

Is my hon. Friend aware that in the cities of Salford and Manchester there is a very keen desire to keep alive the tradition of the Royal Naval Volunteer Reserve in Manchester, but that young men who wish to carry on that tradition have no opportunity of doing so except by going to Liverpool, which is utterly impossible for university students for reasons both of time and of cost? Surely my hon. Friend will do something to help them?

I quite appreciate the interest that people in the Manchester area take in the Navy, and I should like to consult my hon. and learned Friend as to how it can be maintained. The point might be met in another way by the formation of a naval brigade.

asked the Parliamentary Secretary to the Admiralty whether, in view of the unilateral denunciation of the Anglo-German Naval Treaty by the German Government, it is proposed to enlarge the cruiser construction programme already announced for the present year, and to substitute eight-inch guns for six-inch guns in cruisers now building or projected?

I would refer my hon. Friend to the answer which I gave on 4th May to my hon. and gallant Friend the Member for Chatham (Captain Plugge) and to which I have at present nothing to add.

In view of the fact that we have a large number of cruisers under construction which might be modified, would my hon. Friend urge upon the First Lord the desirability of coming to an early decision?

Is the hon. Gentleman now in a position to tell the House whether the denunciation of the treaty by Germany leaves this country a completely free hand in regard to the question of scrapping ships of the "Royal Oak" class?

That question must await the considered reply of the Government to the German denunciation.

Is it not the case that the Prime Minister has stated that representations have been made to the German Government on this matter? Is it not also the case that the treaty is capable of different interpretations, and that the Admiralty must know what is the position with regard to the "Royal Oak" class following the denunciation of the treaty?

That may be so or not, but I think it is not wise to make a partial statement on a large question which the Prime Minister has just stated is being dealt with.

When may we expect a statement?

asked the Parliamentary Secretary to the Admiralty whether, in view of the fact that a number of aged pensioners are being turned out of their houses in Rosyth Garden City at the end of May in order to find accommodation for extra personnel being taken at the dockyard, suitable accommodation will be found for these people by the Admiralty authorities in order to alleviate the hardship that will otherwise be caused?

Every endeavour is being made to minimise inconvenience and hardship to the tenants in the Rosyth Garden City. To this end arrangements have been made for some 133 houses to be erected by the Scottish National Housing Company, and the Dunfermline Town Council have agreed to reserve about the same number in their Rosyth Halt Housing Scheme for displaced tenants. These houses will not be available by the expiry date of the notices served on the Rosyth Garden City tenants, and it has been decided that, where possible, the tenants shall be allowed to remain in temporary occupation of their present residences.

In view of the uncertainty and worry that these tenants are enduring, would not the Minister lay it down that none of these tenants will be removed until adequate alternative accommodation has been found for them?

Tenants are allowed to remain, where possible, in the occupation of their present houses.

Is it the intention of the Admiralty to ask any of these tenants to remove from their houses? Is the hon. Gentleman aware that, since the notices were served, a considerable number of houses have been empty and have been handed over to the Admiralty? Is it the intention of the Admiralty to ask any of these tenants to move, and especially the class mentioned in the question?

I cannot say that they will in no case be asked to move, but we are trying to do what we want, and that is to find residences with a minimum of inconvenience for a number of men whom we must employ.

Is it not a fact that there is an understanding between the Admiralty and the Dunfermline Town Council with regard to the allocation of the houses; and that the town council are making houses available on the site, on the understanding that as little inconvenience as possible will be suffered by the tenants at Rosyth?

asked the Parliamentary Secretary to the Admiralty whether he will consider the advisability of utilising the seafaring ability of the people of Newfoundland in the interest of Imperial Defence by allocating two of the forthcoming new cruisers as the nucleus of a Royal Newfoundland Navy, on the lines of the Royal Australian Navy, to be manned by Newfoundlanders?

I am afraid that the hon. Member's suggestion is not a practicable one. The Admiralty would, however, welcome an increase in the number of recruits for the Royal Navy from Newfoundland, and proposals with this object in view are under consideration.

asked the Parliamentary Secretary to the Admiralty whether any decision has yet been taken regarding the scrapping of the two battleships of the "Royal Sovereign" class?

I would refer the hon. Member to the reply which I gave to him on 3rd May, to which I have nothing to add.

Now that there is no quantitative treaty limiting our relation to any other fleet what advantage would accrue to this country by scrapping these ships?

Would it not be better if these vast sums of money which are necessary for the upkeep of these old battleships were spent upon the provision of smaller craft which are so urgently required?

This matter was debated at some length on the Navy Estimates, but it is not a question for immediate urgency, as these ships do not fall to be scrapped until the end of 1941.

asked the Parliamentary Secretary to the Admiralty particulars, according to the latest information he has received, of the number of battleships that have been built by the Japanese Government carrying guns of a larger size than 14 inches?

The battleships "Nagato" and "Mutsu," completed in 1920 and 1921 respectively, are the only Japanese ships mounting guns larger than 14 inch which are known to have been completed before the London Naval Treaty (1930) expired on 31st December, 1936.

Has any information been received about Japanese intentions?

No, Sir, we have no reliable information on this subject.

asked the Parliamentary Secretary to the Admiralty whether the hydrographic department of the Admiralty was consulted as to the route to be followed by the "Empress of Australia" when making the coast of Canada?

asked the Parliamentary Secretary to the Admiralty who was responsible for deciding that the "Empress of Australia" should take the North Atlantic route at a time when fog and ice conditions are usual?

asked the Parliamentary Secretary to the Admiralty who was responsible for the choosing of the particular route taken by the "Empress of Australia"?

The Director of Navigation was consulted as to the distance to be steamed and the weather likely to be experienced at this season. There are seven routes, three to Canada and four to New York and Boston, laid down under the North Atlantic Track Agreement, 1931, which ships can follow at various months of the year. After consultation with the Canadian Pacific Steamship Company, Track "E," the most southerly Canadian route, was selected as the appropriate route for this time of year and the one most likely to be free from ice. On receipt of ice reports from the ice patrol, however, the route was altered to Track "C," the most Northerly Boston and New York route. The delay was caused solely by experiencing three days' dense fog in possible ice area.

Is it not the case that the experience of years must have indicated to the hydrographic department that bad visibility and ice were likely to be encountered on the route followed; and, therefore, did not the Admiralty advise that the time schedule for this voyage to Canada should be extended, in order to avoid any possible chance of creating inconvenience to the people of Canada—which has, in fact, been occasioned?

Before my hon. Friend replies—

Answer!

I pointed out to the hon. and gallant Member that, in the first place, the Director of Navigation was consulted, and thereafter we had the experience which is most worth having—the experience of the particular company and of the captain, who for 30 years has sailed this route. The route chosen was that advised by all the experts, and it was only, I think, on 10th May, when the ice was encountered, that a further report came from the ice patrol, and in particular a signal was received from a Canadian Pacific cargo ship, that the southern route, by which she had just come from Canada, was safe, that the captain decided to drop down from the Southern Canadian route into the Northern American route. I think the whole country should be grateful for the way in which he and the crew carried out their duties.

May I ask one final supplementary question?

—

asked the Prime Minister whether he is aware of the valuable services rendered by Sir Donald Banks to civil aviation; whether, in view of his transfer from this Department to the Import Duties Advisory Committee, the Government's policy towards civil aviation has been reversed; or whether it is still the intention of the Government to place British civil aviation in front of the civil aviation of any other country?

The answer to the first part of the question is in the affirmative. The answer to the second and third parts of the question is that the policy of the Government remains unchanged.

Is it still the intention of His Majesty's Government that British civil aviation shall be in front of the civil aviation of any other country?

I have said that the policy of the Government remains unchanged, and this aspect of the policy, therefore, still stands.

asked the Prime Minister whether he will consider setting up a Royal Commission to inquire into the efficiency of the civil servants employed in the Government Departments at Whitehall, with a view to expediting preparedness for emergency and the full development of our national resources?

No, Sir. I do not think any useful purpose would be served by setting up a Royal Commission such as is suggested by my hon. Friend. Since the War there have been several inquiries which have included the subject he appears to have in mind. In each case the conclusion has been reached that the standard of efficiency in the Civil Service is in all respects satisfactory.

Is my right hon. Friend aware of the delays taking place in Whitehall to-day through overlapping and jealousies, and that in one case there has been three weeks' delay; and is he aware that, generally speaking, the civil servant over 50 has no imagination and the civil servant under 50 has very little?

asked the Prime Minister when he expects to introduce the Ministry of Supply Bill; and whether in the interim, the right hon. Member for Luton (Mr. Burgin) will be given any authority to fix priority for Army orders?

In reply to the first part of the question, I would refer the hon. Member to the answer given on the 11th instant to a similar question put by my hon. and learned Friend the Member for Leicester, East (Mr. Lyons). The answer to the last part of the question is in the negative. Pending legislation for the establishment of a Ministry of Supply, such questions of priority as may arise will continue to be dealt with through the machinery of the Committee of Imperial Defence.

In view of the necessity of equipping the new Territorial divisions as well as the militiamen, is it not desirable that this priority should be given, seeing that the question is an urgent one?

Yes, Sir; I think it is desirable that priority should be given, but it must await the passing of the necessary legislation.

Is the Prime Minister satisfied that the Government have sufficient priority with firms, as between Government and civil orders?

I would not like to answer that question, not having been personally concerned with these matters.

Has the Prime Minister considered the possibility of saving time in this very urgent matter by introducing the Bill in another place?

Could my right hon. Friend say when it is expected that the Ministry of Supply shall begin to operate?