asked the Secretary of State for War (1) why most of the National Service men who attain officer rank come from the South; and why it is considered by selection boards that Northerners are less suitable as officers;

(2) whether the views expressed at a recent command conference at Chester that the material for officers does not exist among Northerners represent War Office policy.

It is a matter of fact and not policy that fewer officers come from the North of England than from the South. This has been so for a long time. As I have told the House on a number of occasions, I am trying to get more officers from the North.

But the right hon. Gentleman has not answered the question why. Also, is he aware that there is real feeling in the North that more attention is paid by the selection boards to the rather more sophisticated, smooth-tongued Southerners than to the more solid types which we have in the North, and that this is mainly due to the accent and industrial background of the latter? Would the right hon. Gentleman make some comment?

I do not want to start any North v. South controversy. The Territorial Associations and others have attended these boards and are satisfied that there is no partiality. If the hon. Gentleman would like to attend a board, I should be pleased to arrange it.

Whilst wholeheartedly agreeing with my hon. Friend, may I ask the Minister if he is aware that the same position applies to walks of life other than the Army?

Is my right hon. Friend aware that the county regiments from the North of England are the best in the Army?

asked the Secretary of State for War if he will authorise a retrospective issue to prisoners repatriated from Korea of the ration allowance granted to a Service man when he cannot be fed by the Service.

No, Sir.

Would the right hon. Gentleman reconsider this matter sympathetically, bearing in mind two points: first, that these men did not receive Red Cross parcels, which are to some extent a substitute for ordinary rations in most modem wars; and, second, that this House presumably voted the right hon. Gentleman and his predecessor money to pay for these chaps' meals—at least, does he remember ever telling us of any cut in Army catering requirements in respect of dinners for prisoners of war?

No, these regulations have always been the same for prisoners, and when these men returned they were given 35 days' leave with double ration cards. I do not think that I could take this exceptional step.

But surely the Minister has misunderstood the point? The regulations lay down that a man's rations follow his pay; that he is entitled either to rations or ration allowance. If these men were not fed and went through months of starvation, surely it is only common decency to give them the ration allowance?

We have no evidence to show that these men were completely starved or did not get food. The North Koreans subscribed to the Geneva Convention but there have been cases in which the diet of prisoners has been inadequate. To institute what has been suggested would constitute a difficult precedent.

asked the Secretary of State for War when the practice of compassionate postings was discontinued and why; and if he will try to get uniformity of practice with the other Service Departments.

Compassionate posting was abolished in January, 1947, because so much of the Army was overseas. That is still so.

Will the right hon. Gentleman answer the second part of the Question, namely, will he try to get uniformity with other Service Departments, in that it must be the experience of many hon. Members, as it is mine, that negotiations with the War Office on this matter are much more difficult than negotiations with either the Air Force or the Navy?

Our problem is much more difficult, because 80 per cent, of the fighting units of the British Army are overseas. Therefore, compassionate postings present a difficult problem, and we have the added problem, which does not obtain in the Navy or the Air Force, of wanting to avoid cross-posting between regiments.

asked the Secretary for War what percentage of the Army's fighting units is now overseas.

The answer is 80 per cent.

In view of the recent speech by the Minister of Defence, would not the right hon. Gentleman agree that there must be something fundamentally wrong with the policy of the Government since it prevents him from establishing the strategic reserve about which the Minister of Defence has spoken?

The main controlling factor here is represented by various things overseas over which neither the War Office nor, indeed, any Government can have absolute control.

In view of the discrimination referred to by my hon. Friend the Member for Stockton-on-Tees (Mr. Chetwynd), could the Minister say what percentage of those serving overseas come from the Durham Light Infantry and the Northumberland Fusiliers?

Not without notice.

asked the Secretary of State for War how many National Service men will be included in the Bermuda garrison.

About 100.

Will the Minister please take steps to make the parents of these 100 men aware that they are doing their two years' military service to satisfy the whim of the Prime Minister that the flag should be shown?

asked the Secretary of State for War the particular merits of the case which induced him to withdraw the Bermuda garrison and shortly afterwards to reinstate it.

Our status in the Western Atlantic.

I have no doubt that it was a very pleasant one in which to serve, but nevertheless, there must have been very cogent reasons which induced the right hon. Gentleman to withdraw an old-established garrison like this and later, after the visit of the Prime Minister, to restore it. Does the Minister not understand that it gives the impression that the Prime Minister has had this garrison restarted purely for ceremonial purposes?

The point about this decision is that just because one step has been taken it does not mean that no other step can be taken in the future. I am not one who believes that I am always right or that there are not a great many people who know better than I do.

asked the Secretary of State for War on how many occasions the Army has used the facilities of Ashridge (Bonar Law Memorial) College in the last five years; for what purposes; and what were the payments involved.

Army students attended 111 courses and some £4,400 has been paid to the college. The courses were in the main concerned with resettlement and general topics of educational interest and value.

Is the Secretary of State aware—I have no doubt he is—that the governing body of this college is nominated by the Conservative Party? May we therefore have an assurance that similar facilities are being used at colleges belonging to the Labour Party? If not, may we know why there is this political discrimination?

There is no political discrimination in relation to this college. The best proof of that is that in 1950 the right hon. Member for Dundee, West (Mr. Strachey) sent 420 students to the college and last year I sent 192.

asked the Secretary of State for War how soon he expects to be in a position to bring forward legislation to amend the Army Act in the light of the recommendations already made by the Select Committee.

After the final report of the Committee has been made to the House.

May we have an assurance from the Secretary of State that he will include some Amendments to the Army Act this year so that there will be an opportunity, such as there was not last year, to discuss some of these recommendations when the Act is debated?

I think that it is the unanimous opinion of the Committee that it would be unwise to introduce these measures piecemeal, and that we should await the full report.

Is not the right hon. Gentleman taking on himself something with regard to which he cannot express an opinion? The question whether Amendments would be in order when we debate the Army Act is not for him but for the Chairman of Ways and Means.

Yes, indeed. That was not the impression that I wished to give. I thought that the hon. Member for New-castle-under-Lyme (Mr. Swingler) was referring to the recommendations of the Select Committee. As to any other Amendments, that is not a matter for me, as the hon. Member for Dudley (Mr. Wigg) says.

asked the Secretary of State for War how many officers and non-commissioned officers under 40 years of age, but excluding National Service men, have left the Army in each of the years 1951, 1952 and 1953.

Our records show retirements and discharges at all ages and do not specify those under 40 years of age.

asked the Secretary of State for War what progress has been made with the standardisation of vehicles.

Good progress has been made in getting interchangeability of engine parts and components of wheeled combat vehicles and of components and bodies of general service vehicles.

Would my right hon. Friend bear in mind the desirability of speeding up the work of the Committee that is engaged on this task? Is he aware that it will not only help the supply and maintenance service but will also help him in his problem of pruning "the tail"?

Yes, Sir, I quite agree.

asked the Secretary of State for War how many National Service men are at present serving sentences of detention at the corrective training establishment at Colchester; how many entered Her Majesty's Forces more than two years ago, and how many commenced their National Service three or more years ago; and what is the weekly cost of maintaining a detained soldier in this establishment.

One hundred and fifty-one, of whom 12 entered the Army between two and three years ago and 10 entered earlier. The weekly cost of maintaining a man in detention there is about £5.

At what point does the Minister consider it unwise or uneconomical to keep in the Forces men who are quite unsatisfactory, in view of the numbers not released although they have been in the Forces for four years or more? Does the right hon. Gentleman think that the time has arrived when he should not retain National Service men beyond this period?

We try to judge each case on its merits; but I would point out that those men who have been more than two or three years in the Army have nearly all been absent without leave for the greater part of the period.

asked the Secretary of State for War for how many hours daily soldiers serving periods of detention at Colchester corrective training establishment are kept locked up; for how many hours they are engaged in physical training and drill; what educational facilities are provided; and on what work of a corrective nature they are employed.

Fifteen and a half hours. They do physical training for one hour and drill for two hours. Five Royal Army Educational Corps instructors carry out the educational programme. Other activities are similarly aimed at making the men better soldiers and citizens.

In view of the fact that these men, as the right hon. Gentleman says, are locked up for 15 hours or more, is not this position really totally unsatisfactory? Could not more staff be employed—I understand that these places are very much understaffed—to give more corrective training to prisoners? We shall otherwise turn them out bigger criminals than before.

The expression "locked up" is slightly misleading. These men are in huts containing about 14 men. They can play games, read books and participate in other activities in the huts. But I agree with the hon. Member that, as in the case of civilian prisons, we would like more staff. We are trying to obtain them.

asked the Secretary of State for War why the application to raise the precedence of the Royal Scots Fusiliers from the 21st to the 4th regiment of infantry has been rejected by the Army Council.

Careful thought was given to this proposal, which raises a matter of principle. Many other regiments would be affected if it were agreed.

Has not the right hon. Gentleman seen the aggressive and rude letter which was sent to the Colonel-in-Chief of this regiment? Surely it is up to him to institute or re-institute an inquiry to find out whether the allegations made in that letter have any substance.

The letter concerned contained an extract from the regimental history of this regiment as issued to recruits. It said that it should have been the 6th,

"but it has so long owned 21 that no other would now be acceptable; in fact most Fusiliers go through life persuaded that 21 is their lucky number. So may it always continue to be."

Is it not historically accurate that the Royal Scots Fusiliers, with which I had the honour to serve, have the right and have earned the right to the fourth place in the line? Will my right hon. Friend receive representations on this very important matter?

It is a very important matter, but also a highly complicated one. The present order has been good enough for some 250 years and it would be very unwise to tamper with it.

Is the Prime Minister aware of the rude language used by a civilian official of the War Office to the Colonel-in-Chief of the regiment? If not, would the right hon. Gentleman inform the Prime Minister? Has the Minister himself seen the letter?

I know of no rude language. But if the hon. Member would like to show me anything of that nature, I should certainly be interested to see it.

asked the Secretary of State for War how many officers, non-commissioned officers and men, respectively, are employed on clerical duties or office work.

Both soldiers and civilians are employed wholly or partly on a wide variety of jobs of this nature, so that it is not possible to produce comprehensive figures.

Cannot the Minister bring us up-to-date on some of these questions? Surely he has been very evasive on questions of this kind about how and where troops are employed.

It would be an immensely complicated task to circularise the whole Army to obtain the exact figures required by this Question.

asked the Secretary of State for War what proportion of time is expended by batmen and waiters on military duties and their secondary employment, respectively.

The amount of time spent on duties as batmen or waiters and on other military duties varies so much according to circumstances that I can give no useful proportional figure.

Is the right hon. Gentleman aware that this is a little too much? Surely the Minister can tell us how much of these men's time is used on other than military duties. Is he aware that we pay the piper and we have the right to call the tune? We have a right to know how they are employed.

It is about as difficult to supply this information as it would be if the hon. Member asked me how much time hon. Members spent in their con stituencies and how much in this House. It would need a great deal of research.

asked the Secretary of State for War what rank an officer must attain to become entitled to the service of a batman or to share the service of a batman.

Where practicable, all officers who are accommodated get the services of a batman or share such services.

Does that mean that even a "one pip" gets a batman, and does the right hon. Gentleman include cadets?

Yes, Sir. He gets one quarter of a batman.

asked the Secretary of State for War how many Territorial units had their fortnight's annual camp outside the United Kingdom in 1951, 1952 and 1953; and the policy of his Department with respect to the future training of Territorials abroad.

None, Sir. But two airborne units took part in manoeuvres in Germany. The training of the Territorial Army is carried out in this country, except for a limited number of individuals whose training can best be done on the Continent. Some 2,000 members of the Army Emergency Reserve trained in Germany last year.

Would my right hon. Friend extend this training as much as he possibly can so that Territorials of all ranks may get some experience of international military training?

There is a great deal to be said for that, but the difficulty is, first, the limited period of a fortnight and, second, the expense of moving large numbers of troops.

Would my right hon. Friend consider allowing Territorial officers to attend exercises in Germany during their period of training so that they may be accustomed to territory over which they may have to fight?

Yes, Sir, I will consider that.

asked the Secretary of State for War if he will make further facilities available to Territorials for the study of modern languages in the course of their training.

I am keeping a careful watch on the numbers of interpreters and linguists needed both by the Regular and Territorial Armies on mobilisation, and I do not think that further facilities for the Territorial Army are justified in present circumstances.

Will my right hon. Friend encourage such training a little more than at present with a view to creating suitable military intelligence staffs for the future?

We keep a very careful account of all officers who have language skills and who might make interpreters. But there are only 15 days in which the Territorials may train, and I do not think we should be justified in starting courses of study during that time.

Is it not the case that the drill sergeant instructs all recruits in new languages?

asked the Secretary of State for War on what technical grounds the Director General of Artillery disagreed with the first results of the comparative trials between the Belgian F.N. rifle and the British E.M.2 rifle held in 1951.

This officer seems to have based his disagreement with the interpretation of the trial results in 1951 on a different assessment of about 20 technical factors involved.

Is it not a fact that the conditions under which these trials were set were afterwards discovered to be founded on an error? Would it not have been more candid of the Secretary of State, when he told us in the debate that the trials showed practically no difference between the two rifles, to have explained that there were a number of technical points in which the trials were set wrongly and that when this was found out it showed that the British rifle was far better than the Belgian rifle? Does it not also show that the celebrated telegram, to which the right hon. Gentleman referred rather disgracefully at the end of his speech, had no relevance whatever because at that time the final trials had not taken place and we did not know that the British rifle was very much better?

I think the hon. Member is sticking to his gun in a rather undue way. These trials were carried out absolutely neutrally by a body of expert opinion and the report was made. The Director General of Artillery had a perfect right to express an opinion but he was not present at the trials. His opinion does not alter the findings of the trials.

Would the right hon. Gentleman agree that the Army Council, which, after all, is qualified to judge, accepted the judgment of the Director General of Artillery.

No, Sir.

It did—

Could not this be settled by a duel between the Secretary of State and my hon. Friend, arranged for both rifles to go off simultaneously, to the satisfaction of the House?

I take it that where military matters are concerned the hon. Member represents the big bore.

asked the Secretary of State for War to what extent church parades continue as part of the Army routine at home stations; and approximately the percentage of men who voluntarily attend church worship.

Church attendance is voluntary but parades in connection with a religious service are held on ceremonial occasions of national or local importance under the authority of a general officer commanding-in-chief. Figures of attendance are not kept.

Is the normal procedure that no compulsion is used to ensure that men attend church parades?

Except for the occasions I have mentioned, there is no compulsion to attend church.

asked the President of the Board of Trade whether he is aware that the Furniture Development Council was formed by his Department in 1949 to implement the proposals made in the working party report by the development and consumer protection provisions of the Industrial Organisation and Development Act, 1947, including the establishment of an independent testing authority for devising standard performance tests and for testing manufacturers' products to ensure that they conform; that excellent work has been done in this connection but that the industry itself has not given the support and encouragement expected to the Furniture Development Council; and if. therefore, he will make a statement upon Us future position and work.

The purposes for which the Furniture Development Council was established are laid down in the Second Schedule of the Furniture Industry Development Council Order, S.I. 2774 of 1948. I agree that the Council has done much useful work and has contributed greatly to the working out of the B.S.I. performance standards. A considerable and increasing number of firms are using its services, although I understand that there is criticism in some quarters. The Council publishes an annual report of its activities and no occasion has arisen for my right hon. Friend to make a fresh statement.

Is the Minister aware of the great satisfaction which hon. Members on both sides of the House will feel that he has been able so to praise the work of the Furniture Development Council? May I also ask if he is aware that the London and South-Eastern Furniture Manufacturers' Association recently demanded the abolition of this Council? Can he give the House an assurance, in view of his commendation, that no notice will be taken of that recommendation?

I think I need only add that no representation has been made about the Council to the Board of Trade since the last statutory review.

Arising out of the answer, is my hon. and learned Friend aware that, quite apart from the fact that greater use is being made of the services of the Council by employers, if qualified technicians could also be provided by the Council that would lead to even greater use of its services by those concerned?

I will bear in mind what my hon. Friend has said.

Is the hon. and learned Gentleman aware that, in view of all the loopholes that are available and the criticism directed against the scheme, it would be very much better to bring back the Utility stamp? Will he consider reintroducing Utility furniture?

I think that the hon. Lady is asking a supplementary question on the wrong Question.

asked the President of the Board of Trade whether he is aware that the British Furniture Trade Confederation has issued a leaflet, "Setting a Standard," and that in it a detailed analysis is made as to why every manufacturer should support the British Standards Institution Kite mark scheme for furniture; that the National Union of Furniture Trade Operatives welcomes the pamphlet, but that some employers are refusing to use the Kite mark; and, as such an attitude is in direct contradiction to the pledges given by the Government on behalf of the industry to hon. Members on 21st January, 1953, if he will make a statement.

My right hon. Friend welcomes the support given to the scheme by the trade interests who have co-operated in the publication of this leaflet.

Many manufacturers have applied for licences to use the Kite mark but the adoption of the scheme is voluntary. Her Majesty's Government have never given a pledge that all manufacturers would apply the Kite mark, but they hope that the value of the mark will become more widely known and appreciated.

With regard to the last part of the Question, is the hon. and learned Gentleman aware that his right hon. Friend some time ago said that the Government were considering making a bigger grant to the British Standards Institution to publicise the Kite mark? May we take it that he is giving consideration to that?

I am afraid that is quite a different question, and I should not like my remarks to be interpreted in one way or the other in relation to that question.

Is the hon. and learned Gentleman aware that the adoption of the Kite mark would not only guarantee the quality of the goods but would also guarantee the conditions under which men and women working in the industry were employed? For that reason, if for no other, will he use his further efforts in order to make the introduction of the Kite mark universal in the trade?

No, it must remain entirely voluntary, but how far it is adopted will, in my opinion, depend on what the public wants.

Is my hon. and learned Friend aware that manufacturers of two-thirds of the cabinet goods already use the Kite mark?

Yes, that is quite accurate.

asked the President of the Board of Trade whether he has yet decided to appoint an inspector under Section 165 (b) of the Companies Act, 1948, to investigate the transaction of the transfer last December of the freehold of the Berkeley Hotel to a new company, the Worcester Buildings Co. (London), Ltd.; whether he has now considered and will publish the observations from the Savoy Hotel directors on this transaction; and whether he will make a statement.

asked the President of the Board of Trade whether he has now received the observations of the Savoy directors with regard to the transfer last December of the Berkeley Hotel to the Worcester Buildings Company (London) Limited.

The Secretary of the Savoy Hotel Limited has informed my right hon. Friend that the observations of the directors are being prepared and that he may expect to receive them in the course of a week or so.

Can the Minister say why it has taken him so long to reach a decision on this matter whereas he quite rightly acquiesced speedily in the request of the Savoy directors for an inquiry into the manipulations of Samuels and company? Will he give a guarantee that when this report, or letter or document is received from the Savoy directors, he will make a statement on the matter?

I think the hon. Member is under a misapprehension. The other inquiry was under a totally different section of the Act and quite different considerations apply. There has been no undue delay on the part of the directors in answering the request for observations which my right hon. Friend made.

asked the President of the Board of Trade if he is aware that, though licences have been issued by the Argentine Government for the importation of £3,000,000 consumer goods from the United Kingdom, these licences are valueless unless they are supported by letters of credit; how many letters of credit have been granted; and how many firm orders have been received under the 1953 Anglo-Argentine trade agreement.

No, Sir. The Argentine decree of June, 1952, under which goods could not be cleared through the Customs unless they were covered by a letter of credit was cancelled in September, 1953, with effect from 1st September, 1952. This requirement was exceptional and licences issued against the £3 million list agreed in April, 1953, will have guaranteed the provision of the necessary foreign exchange. It is not possible to identify the specific orders which have resulted from the trade agreement.

Is my right hon. Friend aware that these licences are only provisional for 45 days, and that in the case of machine tool orders they have also to get another licence from the Ministry of Industry and Commerce? Can he assure us that these further licences are being granted so that the trade may flow, as promised?

My hon. Friend will agree that it is extraordinarily difficult to link orders and deliveries specifically with the granting of licences. We are watching the position very carefully and I believe that trade will flow. It is flowing now to the extent of the licences actually given.

asked the President of the Board of Trade to make a further statement on the latest reports he has received about the British trade negotiations in Moscow.

asked the President of the Board of Trade what further information he has as to the value or nature of the goods, recently the subject of a trade agreement in Moscow, for which export licences may be refused.

My right hon. Friend and I have now met a number of the businessmen who have recently visited Moscow. I understand that they have signed contracts worth about £16 million and are pursuing other important inquiries. Of the contracts signed, approval has already been given for the export of trawlers valued at approximately £6 million.

Some of the other contracts include items which would appear to be on the strategic control lists and need further consideration; but on the basis of information already available, I would judge that at least half of these contracts will be permissible.

May I ask two questions? Could my right hon. Friend say whether export licences will be granted for the £3½ million of firm orders which have been received for machine tools which, if not supplied by this country, will be supplied by Sweden and Switzerland? Can he, secondly, assure the House that export licences will be granted for the £1 million of diesel engines, and that the export of these will be increased rapidly, otherwise they will be supplied from Germany? Can my right hon. Friend assure the House that export licences will be granted in respect of those two groups?

Machine tools come into the category which I have mentioned, where some of them appear to be on the strategic control lists. Further consideration is, therefore, to be given to them. We are awaiting the exact specifications from the manufacturers as to the particular machine tools. I think the same thing may apply to diesel equipment, although I hope that in a substantial proportion of the cases it may be found to be all right. The examination is to take place at the earliest possible moment, and I am afraid the answer will depend on the exact specifications of the goods which have been ordered.

While welcoming the success of this mission, may I follow up the questions already put to the Minister? Can he say what guarantee there is that if we refuse export licences for these goods, other Western nations will not grant export licences, so that we shall lose very important business?

As the hon. Member knows, the embargo list is agreed on the recommendation of the Consultative Group, which includes most of the nations of Western Europe and Canada and the United States. We have no reason to believe that any of the member nations of the Consultative Group is likely to do otherwise than carry out the agreement into which it has entered.

Regarding the embargo group, is the theory behind the agreement the theory that Western nations themselves need those machine tools or is it that the selling of them to a potential enemy would be dangerous?

The basic principal behind the agreement, of course, is to identify and separate items which will contribute directly to military potential. It is a most difficult matter.

Will the right hon. Gentleman bear in mind that there is a great deal of muddle behind his answer? Sewing machines could be instruments of war, as could lathes or boring machines, and they could also be used for peaceful ends. What we want is a complete reclassification.

I do not disagree with what the hon. Member has said. It is extraordinarily difficult to decide what is an instrument of military potential and what is not, because these machines have common uses. All I can say is that these very difficult matters are under frequent, almost continuous, consideration in the Group. I am sure the hon. Member will agree that we must move there in co-operation with other nations.

Could the Minister say whether Western Germany is a member of the Consultative Group?

And Denmark?

Yes, both those countries are working in consultation with us.

asked the President of the Board of Trade if he can give the value of contracts placed with British manufacturers in the last year for the supply of equipment to electrical schemes in the United States of America; and the value of the tenders which were rejected although the lowest submitted.

According to my information, which may be incomplete, British firms secured contracts during 1953 worth about 6,900,000 dollars for the supply of equipment to electrical schemes in the United States.

I am aware of two cases where fully compliant British bids, although the lowest, were rejected. One of these was the tender of approximately 4·4 million dollars for four generators for the Chief Joseph Dam, where all bids were rejected in the circumstances described in my right hon. Friend's speech on 20th April, 1953, in the course of the debate on the Budget proposals. In the other case a low British bid of approximately 375,000 dollars to supply a transformer to the city of Los Angeles was rejected on the grounds that evaluation of competing bids showed that no price advantage would be gained by acceptance of the British bid.

While I think the answer shows a highly successful year for these British manufacturers, as the policy of both Governments is "trade not aid," have conversations been started with the United States to try to persuade them to take British goods, which is the only way we can repay our debts?

I entirely agree with the hon. Gentleman. We lose no opportunity of putting that view in every way we can to our friends in the United States.

asked the President of the Board of Trade what steps are being taken to enter into a new trade agreement with the Polish Government.

asked the President of the Board of Trade whether he will announce the date on which discussions are likely to begin on the question of a new trade agreement with Poland.

Trade negotiations with Poland will begin on 4th March.

May we hope that these will be conducted with all possible speed? Will the Minister say whether or not there will be an opportunity to discuss the agreement?

It is very difficult to say what agreement will emerge. I would rather defer that question for further consideration. No doubt, if he wishes, the hon. Gentleman will put down a further Question. It is rather hypothetical until the negotiations start.

asked the President of the Board of Trade if his attention has been directed to the official statement by Mr. Ivan Kabanov, Soviet Minister of Foreign Trade, that Soviet commercial organisations are prepared to place orders with Britain over the next three years to the value of £116,000,000 worth of trade; and if he will make a statement on the matter.

I would refer the hon. Member to the answer I gave to the right hon. Member for Huyton (Mr. H. Wilson) on 16th February.

I do not know what that answer was. In order to assist the House, would the Minister repeat it?

The substance of it was that the total orders which the Soviet Minister envisaged for three years amounted to about 4,500 million roubles. I said that, as far as we could see, at any rate rather less than half of the total would fall outside the present embargo.

Is the Minister aware that orders of the kind indicated are badly needed by the British shipbuilding industry, where the outlook is very unpromising and where there is a grave threat of unemployment? Will he do his best to facilitate the giving of Russian orders and other foreign orders to British shipbuilding firms?

We shall certainly not lose sight of the interests of the British shipbuilding industry, and that aspect is under consideration.

Could the Minister inform the House what rate of exchange has been used in converting this figure of rouble orders into sterling?

I was afraid that either the right hon. Gentleman or some other hon. Member would ask me that question. All I can say is that it was the same rate of exchange as that which the right hon. Member for Huyton used when he asked me the Question. I believe it is known as the "official rate."

I presume that payment for this order will be made in sterling. Is that the case?

No, in sterling or gold.

It is clear, then, that it will be made in sterling, under our payments agreement with the U.S.S.R.? Surely, if that is the case, the right hon. Gentleman can give us a clearer idea of the total value in sterling of the orders?

I must ask the right hon. Gentleman to put down a special Question on that point, as I want to study it for some time before I give him an answer.

asked the President of the Board of Trade what duty is charged on imported grey and bleached cloth, prints and rayon into the United Kingdom from India; and what duty is charged by India on similar exports from the United Kingdom.

No duty is chargeable on cotton piece goods imported from India, subject to the usual conditions relating to proof of origin and consignment. Rayon cloth imported from India, subject to the same conditions is liable to preferential duty at 5/6ths of the full rate applied to foreign goods, which varies according to the composition and width of the cloth. The import duties at present charged in India on United Kingdom cotton and rayon textiles range from 60 to 80 per cent ad valorem.

Can the Minister say whether any conversations have taken place to try to get reciprocity in this matter, and to reduce the Indian duty to the level of the British?

We have from time to time pointed out this disparity between the rates charged on imports into India and the rates which we charge on imports into this country of Indian goods, but the Indian authorities seem determined on the high rate of protection of their own industries, and my hon. Friend will realise that it is not for us to question the wisdom of their own policy in that respect.

asked the President of the Board of Trade whether he is now in a position to make a statement about the paying out of claims on German debts.

Not yet, Sir.

Is it not true that the money has already been paid by Germany into this country, and that the President of the Board of Trade has already stated that he has cut down the number of people on the staff of the Custodian of Enemy Property? Can the right hon. Gentleman therefore explain why we are holding up this scheme, which is of some importance from the City point of view, and also from the point of view of the money being used again?

I agree that the sooner it is proceeded with the better, and my right hon. Friend indicated to my hon. Friend in answer to a Question the other day that we hoped shortly to be in a position to go ahead. Between then and now, we have had representations from certain creditor interests asking us to modify the existing scheme, and that request is being looked into. I hope that, when that has been done, we shall be able to take action within a comparatively short time.

Cannot some intermediate payment be made?

I think we shall have to dispose of these representations first before we take any account of making an interim payment, but no further prolonged delay will take place.

asked the President of the Board of Trade whether he is aware of the difficulties of some retailers of sweets and tobacco in obtaining a sufficient allocation of cigarettes for their customers; and whether he will consider referring to the Monopolies Commission the present arrangements for the wholesale and retail distribution of cigarettes in this country.

There is no general shortage of cigarettes, but I am aware that some distributors may not be able to get as many cigarettes of certain brands as they would like. I do not think that there are any grounds for referring this matter to the Monopolies Commission.

May I ask my hon. and learned Friend whether there can be any justification for the fact that the most popular brands of cigarettes are still "under the counter" in some areas in the north of England, and only in the north of England, and that traders are receiving only one-third of the quantity they can sell of these cigarettes? Is it not also very wrong that some wholesalers are making it a condition of supply that the retailer must sell a certain quantity of confectionery, in the case of mixed businesses, so that the rationing of cigarettes is bound up with confectionery supplies?

While there are restrictions on supplies of dollar tobacco it is impossible to increase the production of certain brands beyond a certain point. I do not think there is a case for referring this matter to the Monopolies Commission, but it may be that some aspects of the distribution arrangements fall within the scope of the general inquiry that is taking place under Section 15 of the Act.

asked the President of the Board of Trade how many new industrial projects, giving separately new factories and extensions exceeding 5,000 square feet, have been commenced in the Birkenhead county borough area since 1951.

According to the records of the Board of Trade, which relate solely to new factories and extensions of over 5,000 square feet, two factories and three extensions, totalling 98,000 square feet and 35,000 square feet respectively, have been started in this area since 1st January, 1952.

Does the Parliamentary Secretary realise how unsatisfactory his reply is? Is he aware that there are now well over 20,000 unemployed men on Merseyside, that the local authority has recommended the building of an advance factory in Birkenhead, and will he do something about it?

The hon. Gentleman's supplementary question refers to Mersey-side, but he will realise that the figures for which he asked are for Birkenhead only. The figures for the Development Area are, of course, greater.

asked the President of the Board of Trade how many companies incorporated in Dublin and transacting business in Great Britain as property owners are registered with the Registrar of Companies.

Six companies incorporated in Dublin, which have property-owning as their main object, are registered with the Registrar of Companies under Part X of the Companies Act, 1948. I would point out that an oversea company is obliged to register under Part X only if it has established a place of business in this country.

If I send the Minister details of certain Irish companies now being used by a bunch of crooks at 77, Gloucester Place, W.1, to continue the Brady slum racket, will he prosecute the wrongdoers concerned for illegal breaches of the Companies Act that may be brought to his notice?

If the hon. and gallant Gentleman has any evidence of apparent breaches of the Companies Act, my right hon. Friend would be grateful if he would bring them to his notice.

Would the Minister define the term "place of business" in connection with the registration of foreign companies in this country? Does it mean the actual place of manufacture, of distribution or what?

The hon. Gentleman's question involves questions both of fact and of law which would have to be considered in each individual case.

asked the President of the Board of Trade what steps have been taken to increase the export of British goods to Japan; what Japanese tariffs are imposed on such exports; what type of Japanese imports into this country have increased during the past six months; and what commodities in these imports are in competition with similar commodities produced here.

In the recent agreement, the Japanese undertook to maintain their imports from the United Kingdom at not less than the 1953 level, and we secured specific quotas for wool yarns and manufactures, motor cycles, whisky and confectionery, for which the Japanese had made no provision in their current import programme. The Japanese tariff on most classes of wool doth is 20 per cent., on motor cycles 30 per cent., on whisky 50 per cent, and on confectionery 35 per cent, ad valorem.

Imports from Japan into the United Kingdom in the second half of 1953 decreased by £3·5 million below the first half; but within the total there were increases in some groups of which the main ones were grain and flour, wood and timber, raw silk, seeds and nuts for oil, and manufactures of wood and timber. These are mainly raw materials and semi-manufactures and do not compete with United Kingdom products to any extent.

May I ask the right hon. Gentleman whether he has worked out a comparison between these two countries to discover whether one or the other is getting some advantage in trade, and whether there is some differentiation in the tariffs imposed? May I also ask whether any step has been taken towards securing some reciprocity?

I think the hon. Gentleman will agree that the only really satisfactory trade agreement is an agreement which works out to the advantage of both sides. We believe that this agreement falls very definitely into that category, and we believe that, from our own point of view, the effect will be very much to the net advantage of the United Kingdom.

asked the President of the Board of Trade if he is aware that owing to a shortage of rayon staple fibre, manufacturers are having to import supplies from Italy; that there is at present an import duty of ninepence a pound upon it; that this adds appreciably to the price of cloth exported; and whether, in view of the need to encourage exports, he will take immediate steps to allow manufacturers a drawback of the duty paid on such cloth exported.

Imports of rayon staple fibre are very small and practically the whole of the demand is met by domestic production, which is expected to increase further. The duty payable on such imports is thus unlikely to have any significant effect on export prices. If exporters generally can show that the import duty is a serious obstacle to export trade, my right hon. Friend will, of course, be prepared to consider the question of drawback.

I understand that woollen manufacturers in the West Riding have approached the Board of Trade on this matter, and have received no satisfaction. Surely that in itself is evidence that there is need, because these fibres are being imported with the results that I have mentioned.

It may well be that a case has not yet been made out showing that this is a significant handicap to the export business, and if the right hon. Gentleman has any additional evidence, or knows anybody who has, which will show that this is a serious handicap, then whether it has been considered in the past or not I assure the right hon. Gentleman that it will be considered further. We shall be glad of any relevant evidence we can get on this point.

Has the hon. Gentleman any evidence that there has been hoarding by Lancashire manufacturers of this material?

I do not think so. As the right hon. Gentleman knows, the production of staple fibres has increased enormously in recent years and consumption in this country now is fortunately running at a very high level indeed. Production is still increasing. I should be very glad to receive from the right hon. Gentleman any evidence he has showing that the present production is insufficient. My evidence is that the total quantity imported is only about 1½ per cent, of the present home production.