asked the Secretary of State for War how many notifications of commissions in the Home Guard have been issued since this organisation was disbanded.

The Home Guard has not been disbanded, but is on a reserve basis with a small active cadre in each battalion. Since the reorganisation was completed on 1st March 101 commissions in the Home Guard have been granted to fill vacancies in the active cadre.

In view of his Answer to this Question, will my right hon. Friend make it perfectly plain to the country as a whole, as one of my most prominent constituents, a very loyal member of the Home Guard, thinks that the War Office is idiotic and wonders how many people were sitting dispatching commissions after the main duties of the Home Guard had ceased? It seems a most tremendous waste of money.

No, I can assure the hon. Lady that she is wrong about that. We have kept the Home Guard on a reserve basis so that it can be mobilised quickly. To do that we have to have a small active cadre in each battalion.

asked the Secretary of State for War by what annual amount his Department's estimates could be reduced if National Service were abolished.

The saving would depend on the size of the Regular Army, which in turn depends on Regular recruiting. It would also be influenced by where that Army was stationed. I therefore do not think a realistic estimate is possible at this stage.

Is it not a fact that there would be quite a large saving of money? Is not this one way in which both the right hon. Gentleman and the Government could implement their promises to cut the cost of living? If we were to cut down on this and put these men on to useful work, would that not be helping the balance of payments position? Will the right hon. Gentleman put that suggestion to the Chancellor and the Cabinet?

That is another question, but I would agree with the hon. Member that undoubtedly there would be a saving, a considerable saving.

asked the Secretary of State for War if he will abolish the fifteen days' reserve training for National Service men in view of its interference with industry, domestic life and family financial commitments.

No, Sir.

Is the right hon. Gentleman aware that many one-man firms are being endangered because the proprietors are unable to obtain substitutes while they are doing their fifteen days' training? Is he aware that in many cases employers do not make up the men's wages, and that consequently they suffer financial hardship, so that some of these men and their families cannot have their ordinary summer holidays?

We have gone into this question frequently in this House, and I do not think I can answer it by way of answer to a supplementary question. A great many employers do make up their men's wages, and men are paid at camp.

asked the Secretary of State for War why it is necessary to have a troop assembly centre in the London area; and what was the practice before the war.

It is needed to accommodate soldiers and sailors and their families leaving or returning to this country by air. It also accommodates others who get held up in London overnight on their way to or from Germany. It has to be in or near Central London because the airfields used for air trooping are spread round London. Such a centre was not required before the war because there was then no regular troop movement by air.

Will my right hon. Friend have regard to the need for economy in this matter? Why should not men who travel in specially chartered aeroplanes assemble at Service aerodromes where Service accommodation is available? And, in cases where men travel as passengers in ordinary commercial flights, does not my right hon. Friend agree that the modern Service man is just as capable of catching an aeroplane if left to his own resources as anyone else?

I would agree about catching an aeroplane. The point is that when men are arriving in large numbers from Singapore it would not be practicable for them to make arrangements for their own accommodation overnight. If they had a long way to go, they would be left high and dry.

asked the Secretary of State for War how many professional accountants are employed by his Department; and on what branches of the work of the Department they are engaged.

Three cost accountants are employed in the contracts organisation.

Would it not reduce the possibility of error in the keeping of the accounts, and, indeed, be more economical in the long run, to employ professional accountants instead of leaving the work to those who have no special training in accountancy?

That question was gone into in some detail by the Crick Committee. I have not time now to go into the details, but, broadly speaking, we train our own audit people on the accounting side and we do not think the importation of a large number of outside accountants would be a desirable step. The Committee did not recommend that we should.

Is it not a fact that the War Office is unable to take complete stock because of lack of officials? Is the right hon. Gentleman giving any consideration to that aspect of the matter?

It is true that to take stock of every single thing we hold would require a very large number of officials, and there is already pressure on me to cut down the staff; we have to strike a balance between the two requirements.

asked the Secretary of State for War how many brigadiers are unemployed at this moment; and what redundancy he expects amongst Army officers in the near future.

Eight, including five who were recently serving with the Arab Legion. I do not expect redundancy in the near future.

Is the right hon. Gentleman aware that there is some anxiety amongst officers on this score, particularly brigadiers, in the event of the cutting down of National Service? Would the right hon. Gentleman look back to some of his speeches of less than ten years ago about colonial forces in Africa and employ some of the surplus officers and N.C.O.s in future in building up our forces in Africa, if and when the need arises?

The cutting down of National Service would release a large number of National Service officers. As to the question about the colonial forces, it does not look to me, with short-service commissions and for other reasons, that that is a likely possibility in the near future.

Is my right hon. Friend aware that it is becoming almost notorious that an enormous number of brigadiers are doing trumped-up jobs at present in order to absorb a number of brigadiers becoming redundant, partly as a consequence of the winding up of A.A. Command?

That is not true. If my hon. and gallant Friend will let me have details of any specific instances of brigadiers doing trumped-up jobs, I will certainly look into them, but I know of none.

Do the right hon. Gentleman's answers mean that he sees very little prospect of employing these redundant brigadiers in what used to be their main occupation, which was becoming elected as Conservative Members of Parliament?

asked the Secretary of State for War if he is aware that the only work given to three National Service men during their 15 days' reserve training at the Headquarters, A.E.R., Royal Army Service Corps, Grange Camp, Kempston, in May was to make five cardboard costermonger barrows for an officers' mess cocktail party and that 50 others were given no training but were employed as waiters, batmen, cleaners and gardeners; and what steps he proposes to take to prevent a repetition of such a state of affairs.

asked the Secretary of State for War if he has investigated the case, details of which have been sent to him, concerning the Royal Army Service Corps Camp, Kempston, at which three Reservists there for 15 days' military training were employed for 7 days making five cardboard costermonger barrows for use at an officers' mess cocktail party; if he is aware that in at least one case there was no other duty or training of any kind; how many men were similarly employed; and what action he is taking to prevent a repetition of such waste of manpower.

I assume that these Questions are based on an article in the Manchester Press. Three National Service men, including the writer of the article, volunteered to make these barrows in their spare time. The writer of the article was employed on clerical duties during his training in camp.

Is the Secretary of State aware that most of these men's time was spent making cardboard wheels for the barrows and attaching to them gold painted leaves and writing "chez" followed by the name of the cook who was to serve lobsters and sucking pig? Is it surprising, in view of these kinds of incidents, that the fifteen days' training is becoming increasingly to be regarded by the men as a bad joke?

What the hon. Member has described sounds very funny and highly ridiculous, but what he omitted to say, and what the writer also omitted to say, was that the men volunteered to do this in their spare time. The individual who wrote the article had the date of his camp changed because he wanted to be married. We let him change, but if he had been to the camp he otherwise would have gone to he would have been doing proper duties.

As there is some obvious dispute about the facts of this case, will the right hon. Gentleman hold an inquiry, when all the interested parties can give their evidence? Surely the right hon. Gentleman appreciates that this is not an isolated case? It is grossly unfair to these young fellows and to their employers that they should be uprooted from their civil jobs to waste time in this stupid fashion. For how long can the country afford to indulge in this kind of comic opera?

I do not think this is a disputed question. I have not heard it contradicted that the men did this in their spare time after volunteering to do it.

As there is a great deal of concern in the Manchester district since the disclosure in the Manchester Evening News, would the right hon. Gentleman like to make a comment on three observations in that paper? The first is that one man had to water the R.S.M.'s mackintosh to get the creases out. The second is that another man was given a bucket and told to go round picking up stones and that, having picked up five, he gave it up as a bad job. The third is that a draughtsman was asked to write out party invitations—

I think that is enough for one supplementary question.

Answer.

Those allegations were all in the article written by this journalist. I have been into them and will answer in detail. On the R.S.M. question, this was not a National Service man. Ten invitations were written by a copperplate writer, who volunteered to do it. I can see no vice in that.

On a point of order. The right hon. Gentleman has not answered part of my question—

That is not a point of order.

asked the Secretary of State for War whether he is satisfied with the situation created by the lapse of requisitioning powers for British troops and their families in Germany; and whether adequate alternative accommodation has now been provided.

asked the Secretary of State for War what representations he has made to the Bonn Government in connection with Flat 25, Altenbrucher Damm, Duisburg, which is no longer available to the British Forces in Germany.

Her Majesty's Ambassador in Bonn and Headquarters, British Army of the Rhine, are in close touch with the Federal and Land Governments about German responsibility for making early arrangements to meet their Treaty obligations for housing. I know of only three cases of difficulty, including the one mentioned by the hon. Member for Jarrow (Mr. Fernyhough). This soldier has been rehoused.

Would not the Secretary of State agree that, according to the Press at any rate, cases are arising in which our troops are losing accommodation, and that it is of great importance that adequate accommodation should be given? Were not these powers abandoned very rashly before alternative arrangements had been made?

Oh, no. This was a matter, as the right hon. Gentleman probably knows, which did not go through the German Parliament. It is a comparatively small percentage, about 10 per cent., which is in question, and we think that by building, by buying leases and by other means we shall get over the problem. However, I would be the first to admit that it is a difficult one. We are watching it very closely.

Does the right hon. Gentleman not realise that, unless we can come to some real understanding with the Bonn Government, cases of this description will give rise to hardship and much bad blood, and that incidents may develop,.which would cause extreme ill-feeling between our people and the Germans? Does he not think that strong representations should be made to the Bonn Government to get over the misunderstanding, so that incidents such as these may not arise in future?

We want to do all we can to avoid friction in this matter, and our Ambassador and our Headquarters have been in touch with the Bonn Government and with various provincial Governments concerned. I think they have done everything possible to avoid friction, and I hope there will not be any more in future.

asked the Secretary of State for War when he expects work on the demolition of the disused part of Chisledon Camp to be completed.

Within six months.

asked the Secretary of State for War what duties have been assigned to the 1st Battalion the Wiltshire Regiment in Cyprus; and how many casualties this unit has so far suffered.

This battalion has been employed on normal internal security duties, which consist of patrolling, cordoning and searching areas, guard, escort duties, etc. Since it went to Cyprus on 18th January, one soldier has died of wounds and seven have been wounded.

Is the right hon. Gentleman aware that there is a very natural anxiety among the relatives of many of these men? Is he satisfied that there is nothing further he can do to get prompt and full information about their safety, the conditions under which they are serving and the job they are doing? Secondly, would the Minister like to make some comment about how these troops, officers and men, are carrying out the exacting and sometimes unpleasant duties with which they are now faced in Cyprus?

I think that the general system of command control, intelligence and operations policy in Cyprus is such that it gives all the regiments who have this difficult and dangerous task the best possible chance of doing it with a minimum of casualties. I have been there, and I know that the hon. Member has also visited the island, and I indeed was full of admiration both for the moderation with which these duties were carried out and the high morale of all the troops.

asked the Secretary of State for War whether he is aware that under the present regulations the eligibility for special campaign pension is still based on a maximum income for a married couple of 38s. a week and that an Oldham man who holds the India Medal, the Frontier Tirah Medal and the Queen's South African Medal, has been refused a campaign pension on the ground that he is receiving the old-age pension; and what steps he will take to deal with this position.

Provision for such awards was withdrawn in 1931.

But is the right hon. Gentleman aware that

"Then it's Tommy this, an' Tommy that, an' ' Tommy, 'ow's yer soul?'

But it's ' Thin red line of 'eroes when the drums begin to roll "?

The hon. Member has made a very rapid and interesting speech, but his basic facts are wrong. When the present benefits of the Welfare State were brought in, this pension became redundant, but it does not make sense to say that a married couple are receiving 38s. a week. All are getting more than that.

asked the Secretary of State for War what forces are stationed in Singapore, in Johore Bahru at the entrance to the causeway from the mainland; and in South Malaya; and what is the reason for the strengthening of troops in this area.

We do not give details of this kind.

Is the right hon. Gentleman aware that there is a great deal of apprehension in Singapore because of the strengthening of these forces and the concentration of forces? Will he remove any impression that this concentration is due to the immediate political situation there?

I do not know about the apprehension in Singapore, but it is our duty to maintain law and order there. I think there would be much more apprehension if it were felt that we were going to fail in our duty in that respect.

asked the Secretary of State for War if he is aware that it is estimated to cost the parents of a Salford National Service man £120 to have his body brought home from Germany for burial; and if he will give an estimate of the annual charge on public funds if in such cases of deaths on home postings the costs were paid by his Department.

The cost of providing the special coffin required by international regulations and transporting a body from Germany varies between about £80 and £140. To pay the cost for all overseas stations would amount to about £50,000 per year.

But if young men are to be conscripted, is there not a moral responsibility to bring these coffins home if the parents so desire? Surely the miserable sum which the Minister mentioned is not too much to spend on relieving their parents' distress.

I am not sure that the hon. Member is absolutely right about being certain that this policy would relieve parents' distress. On some occasions, it might increase it. This whole question was gone into very carefully after the war. I can give the hon. Member further details, but I believe that the original decision made then was the right one.

asked the Secretary of State for War whether he will make a statement regarding the fate of Lance-Corporal Harry Gordon Hill and Private Ronald Shilton, both of the British forces stationed in Cyprus.

Lance-Corporal Hill was last seen in Cyprus on 19th December, 1955, and Private Shilton on 17th April, 1956. E.O.K.A. leaflets printed in English and Greek claimed that both the soldiers were hanged on 10th May and that their bodies were secretly buried as a reprisal for the execution of the two Greek Cypriots Karaolis and Demetrious. No trace of evidence has been found that the soldiers were held by E.O.K.A. It is significant that before the executions they never stated that the soldiers were held as hostages and no attempt was made to use them as a basis for bargaining. The leaflet was inaccurate in some respects. I regret to say that we have no information from any source to show what has happened to these two men.

Is the right hon. Gentleman aware that, in view of the vast security forces available in Cyprus and the fact that one of these men has been missing for a very long time, his answer is most unsatisfactory? While there is no evidence that these men have been hanged, there is no evidence to show that they have not. It is a very grave matter, and a terrible tragedy may have occurred. Is the right hon. Gentleman aware that the public are left with the impression, because of prevarication, that the Government may not be prepared to face the consequences of public opinion in this country as a result of what may have happened?

I think that that is misrepresenting the facts. Nobody is more upset than I am that these two men are missing. I am merely saying that they are missing and that it is claimed that they were held and hanged. From the information that we have, the facts suggest that that is a misrepresentation and that they were not held and not hanged, but nobody can be certain.

Is not the real position that these tragedies on both sides and these outrages on both sides will go on as long as the Government's present policy in Cyprus continues?

asked the Secretary of State for War if he will examine the practicability of dyeing surplus Army uniforms and selling them for civilian use instead of cutting them up for use as dusters and similar purposes.

This is being done.

Is the right hon. Gentleman aware that many of us who have been pressing for this will welcome that answer?

asked the President of the Board of Trade if he will remove from the list of goods restricted for export to China, 15 cwt. and I ton concrete dumpers.

No, Sir. But my right hon. Friend is ready to consider, on their merits, any applications for the export of concrete dumpers to China to be licensed under the exceptions procedure.

Does not the Minister realise that it is impossible for a manufacturer to go to the expense of getting an order when he does not learn until he has spent the money and secured the order whether or not he will be permitted to export the goods? Cannot he give some assurance before an individual firm embarks upon the necessary expenditure?

I do not think that is the way in which this matter works. I think that the procedure can work quite satisfactorily, and if the hon. Member's constituent who is concerned would like to get in touch with us, we will do our best to help him.

What earthly purpose is served by preventing machines of this kind being exported to China?

My Answer said that we have made use of the exceptions procedure when we have considered these cases on their merits, and that seems to me to be serving a good purpose.

Are the Government content with that exceptions procedure, or are they still pressing through international negotiations for some much more general relaxation?

I cannot add to what was said by my right hon. Friend the Minister of State for Foreign Affairs on 14th May, when he said that the discussions, of which the right hon. Gentleman knows, are not yet concluded.

asked the President of the Board of Trade if his attention has been drawn to the action of a film production company in transferring to Germany for processing the negative of a film called, "Escape in the Sun," during the course of a trade dispute with the Association of Cinematograph Technicians; and if he will give an assurance that he will refuse import licences to film processed abroad on account of trade disputes.

No licences are required for the import of exposed films from Germany.

asked the President of the Board of Trade whether he is aware of the further diminution in employment in the Lancashire cotton industry; and whether he will discuss with the Secretary of State for the Colonies proposals for the expansion of exports of cotton yarn and cloth in those territories.

My right hon. Friend is aware of the employment position in the Lancashire cotton industry. He is in close touch with the industry through the Cotton Exports Committee and otherwise on all questions of exports. The Colonial Territories admit our cotton goods without import restrictions, with the exception of Jamaica.

Would the right hon. Gentleman examine the figures which have been circulated by the Cotton Board? If he does so, he will see that there has been a very considerable diminution in all cotton imports by Colonial Territories in the last few years. Is he aware that spindle hours dropped by 14 per cent. from 1954 to 1955 and loom hours by 8 per cent. and that that is a very serious set-back for a very important industry?

I am, of course, aware of these matters. The diminution has been in colonial imports from this country. Total colonial imports have increased very considerably and, as the standard of living in the Colonies rises, we hope that there will be more scope for imports of Lancashire cotton goods.

What steps are Her Majesty's Government taking to draw the attention of exporters in this country to the fact that earnings as a result of the recent lifting of the embargo on trade with China will mean increased money and ability to buy goods?

I think that they are quite aware of that.

asked the President of the Board of Trade whether, in view of the serious effect of the Congo Basin Treaties on the Lancashire cotton industry, he will discuss with the other United Kingdom Ministers concerned the question of the revision of those treaties.

The Congo Basin Treaties have, for the past 70 years, prevented the Colonial Governments in this area from giving us preferences on cotton textiles and other things, and they have protected our position in countries in this area outside the British Commonwealth. Their revision, if that were practicable, would not by itself help the Lancashire textile industry.

Is the right hon. Gentleman aware that, taking the three East African territories alone, their cotton piece goods imports in the last recorded quarter, as provided by the Cotton Board, were 7½ per cent. from the United Kingdom and over 80 per cent. from India and Japan? In view of the help that we give to these countries and the responsibility we take, surely the time has come when the right hon. Gentleman should look at this matter. There multilateral treaties are not sacrosanct for ever.

I am aware of these facts and of the desirability of our exports to East Africa and other places being increased, but I do not think that a revision of the Congo Basin Treaties will necessarily by itself bring about that result.

What was the point of the Anglo-Japanese Peace Treaty of 1951 denying Japan any rights under the Congo Basin Treaties if, by so doing, it has made no difference at all to Japan's ability still to enjoy the lion's share of the East African market?

That raises a special question on Japan. This question is about the Congo Basin Treaties generally which affect an enormously large number of countries.

asked the President of the Board of Trade if he is aware of the extent to which the bankruptcy laws are used by debtors to exploit their creditors; if he is satisfied that the law in regard to bankruptcy offences is being adequately enforced; and if he will make a statement.

I am not aware that the bankruptcy laws are being used by debtors to exploit their creditors; but, if my hon. Friend has evidence of such exploitation, I suggest that he should bring it to the notice of the Committee on Bankruptcy Law Amendment which is sitting under the chairmanship of His Honour Judge Blagden. I have no reason to think that the law in regard to bankruptcy offences is not being adequately enforced.

Is my hon. and learned Friend aware that many people embark upon enterprises on credit without either the hope or intention of paying up if things go wrong, knowing that they can escape their liabilities by passing through the Bankruptcy Court? Will he not look further into the question of tightening up the law relating to the obtaining of credit over and above the cases where the technical offence of obtaining money by false pretences exists?

The Blagden Committee is engaged in the task of reviewing the adequacy or otherwise of the existing law. Perhaps my hon. Friend would sympathetically consider my suggestion that he should get into touch with that Committee?

Would not the hon. and learned Gentleman agree that there are far too many bankrupts now due to the policy being pursued by Her Majesty's Government?

No, Sir, I cannot accept the implication of the hon. Gentleman's supplementary question.

asked the President of the Board of Trade (1) what action he proposes to deal with the loss of trade now being experienced by the hollow-ware industry;

The value of exports of domestic hollow-ware during the first four months of this year is 19 per cent. below the value of similar exports in the same period last year. This is mainly due to reductions in our exports to African territories which have been affected by a marked intensification of competition. The hollow-ware industry has made representations to the Board of Trade about this matter, but the evidence of dumping so far provided has not been conclusive. The services of the Board of Trade are always available to help in finding and developing additional markets overseas.

Is the Minister aware that I have sent him figures which lead one to suppose that some form or organised dumping is going on? Will he further pursue his inquiries into that matter?

Certainly, Sir.

asked the President of the Board of Trade, in view of the fact that motor car exports were down for the fourth month in succession, being 26,082 for April, 1956, against 33,345 for April, 1955, and making only 99,592 for the first four months of this year against 123,928 for the same period last year, if he will invite both sides of the industry to meet him to see how far the price of our cars can be reduced, so that they may be more readily sold abroad, and a slump in the industry be arrested.

My right hon. Friend is advised on matters affecting the Motor Industry by the National Advisory Council, on which both sides of the industry are represented and which meets regularly. The next meeting is on 27th June, when the industry's exports will be considered. Prices must, of course, be matters for the commercial judgment of the manufacturers.

In view of these alarming figures, which show a fall in exports in each of the last four months, and in view of the fact that there is a slump starting in the Detroit motor industry, does not the Minister think that we ought to get our own people together and put our own house in order before that American setback really hits us in this country?

But our people come together, and my right hon. Friend is in touch with them through the National Advisory Council.

When the National Advisory Council meets, would the Minister put to them the suggestion contained in the Question, which is an admirable one, particularly that of trying to save money and cutting down the prices of cars? Would it not be a good thing if a few more Sir Bernard Dockers were sacked and we got on with the job of reducing the prices of cars?

I am certain that the motor car manufacturers know full well the importance of cutting costs. It is in their own interest. Their livelihood depends upon increasing their production and increasing exports, and I have no doubt that they will do so if they can.

asked the President of the Board of Trade how many proposals he has rejected for building factories and factory extensions in Development Areas over the past six months; and if he will make a statement about his policy in this regard.

No application for an industrial development certificate for a privately financed factory has been rejected in a Development Area in the period to which this Question relates. As regards applications for the building or extension of Government-financed factories, no precise figures of cases rejected are available, as no statistics are kept of inquiries or proposals which are tentative or obviously without claim on Government finance. However, no applications outside this latter category have been finally rejected in the period in question. But in view of the need for the strictest economy in Government expenditure, it has been necessary to defer consideration of all proposals for the provision of new Government-financed factories or extensions under the Distribution of Industry Act save in a very few cases of special importance and urgency. The applications which may qualify for this special category are under consideration, and the remainder have been deferred. The latter will be reviewed as soon as economic circumstances permit.

But does this not mean that the Government have made a major change in Development Area policy without informing the House, and that what has been the admitted policy ever since the end of the war has now been changed? Further, does it not mean that the Government are refusing to build factories, many of which may be essential, if they have to be built on public account, but that there is no control whatsoever of inessential private factory building?

Taking the first of the right hon. Gentleman's supplementary questions, I do not agree with him that this is a major change in policy. It is a change in the tempo of the application of the machinery of the Distribution of Industry Act. In regard to industrial development certificates, the right hon. Gentleman well knows that there we are bound by our statutory duties as defined by Section 14 (4) of the Town and Country Planning Act, 1947.

Is it not utterly unprecedented at any time since the war for the Government to refrain from building factories in Development Areas on the grounds of saving money, and is not this a policy of lunacy, to try to help the country out of its present difficulties by not building new factories?

I am sorry if the right hon. Gentleman finds the policy of trying to save money unfashionable. On the contrary, I should have thought that it was right to review the application of the machinery of this Act in accordance with the general economic position of the country.

Does the hon. and learned Gentleman see no distinction between spending money on the building of new factories and spending money on current consumption?

That is precisely why these applications have been divided into the two categories to which I have referred, and why those of special importance and urgency have been picked out for special treatment.

On a point of order, Mr. Speaker. This is clearly a change of policy, and in view of the hon. and learned Gentleman's unsatisfactory answer, he can be sure that we on this side of the House will find an opportunity of raising the matter in debate.

asked the President of the Board of Trade why he has rejected the proposal to build on the Huyton Industrial Estate an extension to a factory, particulars of which have been supplied to him, in view of the contribution that would be made to employment in a Development Area and to exports, including dollar exports.

The company concerned were informed in March this year that we could not in current circumstances approve their application for the building at public expense of a large extension to their present factory; and they have substituted a smaller scheme, which is now under consideration.

Yes, but is this not a clear case of a factory that would make a contribution to dollar exports as well as to employment in a Development Area? Will the hon. and learned Gentleman answer this question. Is it not a fact that essential factory building of this kind is being held up owing to the economy drive of the Government, and that the Government have so far refused to take powers to make corresponding cuts in inessential factory building that does not help our export trade?

No, this application comes within the category of those to which I referred in answer to the right hon. Gentleman's previous Question, namely, of special importance and urgency, on which a decision will be made shortly. In arriving at that decision, both the factors to which the right hon. Gentleman refers, employment and export contribution, will be taken closely into consideration.

But if the hon. and learned Gentleman admits that this comes under the heading of special urgency, both for employment and exports, why has the company been asked to withdraw its major proposal for an extension which would make a major contribution to exports, and has been asked to substitute a very small scheme in its place which can make only a small contribution to increased exports?

My reference to its being included in this category was a reference to the current application, which is the modified application, and which is now the only thing before us.

asked the President of the Board of Trade the total amount of new factory building provided in the Scottish Development Area in each of the last four years; and what were the comparable figures for the developing mining areas in East Scotland.

As the Answer is rather long and contains a table of figures, I will, with permission, circulate it in the OFFICIAL REPORT.

Can the Minister indicate whether the figures relating to the developing mining areas of East Fife in the east of Scotland are negligible or otherwise? If they are, in view of the importance of these areas to the economic well-being of the country as a whole, will Lie take additional powers to seek to attract industry into them?

The figures are, of course. much smaller than those for the central Development Area in Scotland, but in the central Development Area the figures of labour available are much higher and there is a heavy concentration of industry. I will bear in mind everything the hon. Member has said about the importance of the area which he represents.

Would the hon. and learned Gentleman also ask his right hon. Friend to compare the lowering of factory building in Scotland as a whole with that allowed in London in recent years? Is it not a wrong policy to bolster up already over-populated areas and to allow sparsely populated areas to be depleted still further?

As the right hon. Gentleman is well aware, there has been a very substantial contribution of new factory building in Scotland over these years. The factory building in London has mainly been in respect of extensions to firms already there.

asked the President of the Board of Trade if he is aware that in the last few weeks the exchange rate of the Brazilian cruzeiro has been manipulated so as to nullify the increased tariff preference granted to British Colonial Territories on bananas; and if he will make a statement.

There have been changes recently in the structure of Brazilian exchange rates, but bananas are only one of the many commodities affected. It is too early to say what the effect might be on exports of bananas from British Colonial Territories. I am, however, watching the position, and we shall approach the Brazilian Government if it appears that the increased preference is being frustrated.

If a change has been made in the exchange rate affecting bananas, would not my right hon. Friend agree that it is a violation in spirit, if not in letter, of the agreement recently negotiated, under which the preference was obtained in return for a concession given to Brazil on Brazil nuts?

The question is whether the intent of the agreement recently reached will or will not be frustrated, and that we must wait and see.

Is not this an example of the need for a discussion of the overall position of our trade with Brazil at present, and will not my right hon. Friend consider the earlier representations which I have made to him on this point?

That is another question. We have recently had discussions with Brazil on payments, and, as my hon. Friend knows, we have reached a satisfactory agreement with them on a more multilateral system of trade.

As the House quite recently approved the arrangement whereby Brazil nuts were given reduced tariffs in consideration of the preference given to colonial bananas, are we to take it that we shall review that arrangement and that the House will be informed with a view to disowning the Order which we passed earlier?

I said that I was watching the position and would approach the Brazilian Government if that became necessary.

asked the President of the Board of Trade what steps he is taking to encourage London firms to open factories in Swindon.

The expansion of Swindon is designed to relieve congestion in the London area, and the Board of Trade try to interest suitable firms in the advantages which Swindon can offer.

Is the hon. and learned Member aware that, although Swindon has been very successful in getting a large number of Londoners and other immigrants settled there, only one London firm has so far moved to Swindon, and that is a firm employing only 80 workers? Is it not time that his Department tried to do more about it?

The hon. Member will appreciate that we have no power to compel London firms to go to Swindon, but he can be assured that no application of any London firm to go to Swindon has been refused. Unfortunately, the distance makes it difficult for some of the smaller firms to transport their undertakings to Swindon, but we will certainly continue to do all we can in this direction.

asked the President of the Board of Trade if he will make a statement about the further cut in imports into Australia of British exports.

The Australian authorities have not announced any change in the present level of import quotas.

Is the Minister aware that over the last two years the Prime Minister of Australia and Minister of Trade have continually called attention to this, and that recently there were widespread reports in the Press that further import cuts were to be made? This is due to Her Majesty's Government's trade policy. When will they review the matter with a view to helping exporters to send their goods to Australia?

The right hon. Gentleman knows abo it the trade discussions. There was a report in the Press on 31st May, and I made inquiries about it, but I have not been able to find any confirmation of the proposals mentioned in the Financial Times article, which he probably saw.

asked the President of the Board of Trade what concessions have been made by Her Majesty's Government as a result of the recent tariff negotiations under the General Agreement on Tariffs and Trade.

My right hon. Friend will be making a statement on 7th June about these negotiations.

In the meantime, can I be assured that the Commonwealth Governments and the home manufacturers of goods concerned were fully consulted before any tariff concessions were made?

I think all that will be covered in the statement or the White Paper. Statements have previously been made about consultations, to which I have nothing to add.

asked the President of the Board of Trade what steps he is now taking to prevent dumping of foreign textiles in this country.

As my right hon. Friend the Lord Privy Seal told the House on 7th March, the Government intend to introduce, early next Session, legislation to permit the imposition of anti-dumping duties in appropriate cases.

I am glad to hear that news. Will my right hon. Friend bear in mind that many firms, particularly in my constituency, are at present suffering very grievously from dumping and excessive imports? Will he see what could be done in the next six months, because the position is steadily worsening?

I am aware of allegations, but I have no clear evidence that textiles are being dumped. I will, of course, pay attention to any evidence brought to my notice.

Is the right hon. Gentleman aware that most hon. Members are having dumped on them a good many bits of material and some dangerous weapons showing that dumping is going on?

asked the President of the Board of Trade why large quantities of Japanese grey cloth are allowed duty-free into this country provided that, after processing here, they are re-exported as British.

Japanese grey cloth within an annual quota of £3 million is imported into the United Kingdom for finishing and re-export to colonial and other markets. In addition, some Japanese grey cloth, the import of which has been licensed by Colonial Governments, is also imported into the United Kingdom for finishing and re-export. These imports give work to the finishing industry which would go to other countries if the imports were not allowed. Duty-free entry is afforded, except for rayon grey cloth, under regulations issued in accordance with Section 40 of the Customs and Excise Act, 1952, which continued powers originally given in 1932.

Might I put three very short questions to my right hon. Friend arising out of his Answer? Are not these Japanese imports, to say the least, somewhat prejudicial to the British textile industry; secondly, why should we make things so easy for Japan, who did not make things particularly easy for us during the last war; and, thirdly, why should we not take steps to safeguard our textile industry such as other countries, notably the United States, take to safeguard theirs?

These imports are not prejudicial to the interests of the Lancashire textile industry as a whole. They help the finishing industry. Our agreement with Japan does not necessarily make things easy for Japan. It is a balanced agreement and, in return for quotas which we grant, we get valuable quotas in Japan. Our trade relations with Japan are regulated by the Anglo-Japanese Trade and Payments Agreement, and the trade quotas are made under it, and I think they are satisfactory to British trade as a whole.

Has the Minister's attention been drawn to Mr. Cyril Lord's proposal that Japanese cloth should be allowed duty-free into this country only on condition that it is re-exported to Commonwealth markets? He feels that this would give some protection to the Lancashire industry. Could the Minister state the Government's attitude to that proposal?

I have seen the various things which Mr. Cyril Lord has sent round to all of us. I understood that his proposal about Japanese imports was that they should not be allowed even for re-export, but on that I think he is wrong and that he does not represent the view of the Lancashire industry as a whole.

asked the Chancellor of the Exchequer the total cost to the Exchequer of loans, grants and gifts of money made to countries outside the British Commonwealth and to international organisations, respectively, during the financial year 1955–56; and what proposals have been made involving a continuance of this type of expenditure during the current financial year.

As the Answer consists of a table of figures, I will, with my hon. Friend's permission, circulate it with the OFFICIAL REPORT.

Is my right hon. Friend aware that the answer to my Question requires only two figures? Would he not agree that it would be much better to conserve our resources for our own use and for the development of the Commonwealth instead of handing out largesse to other countries from which we get no thanks and few advantages?

Perhaps my hon. Friend will look at the figures in the reply, when perhaps we could have a discussion or he might wish to put down further Questions.

asked the Chancellor of the Exchequer if he will reduce considerably the Bank Rate in view of the fact that it no longer acts in a major deflationary way because of the existing rate of taxation but is adding to the financial burdens of local authorities and impeding business expansion that ought, in the national interest, to take place.

Monetary policy remains flexible and the Bank Rate will be varied as circumstances require. But my hon. Friend underrates the deflationary effect of the present level of interest rates.

What is the use of controlling the cost of money through a high Bank Rate and at the same time leaving volume uncontrolled? What steps will my right hon. Friend take to control volume so that price control can be effective? Is he not aware that the present policy in some respects is undoubtedly having an influence on the cost of living?

These deep subjects are difficult to deal with by question and answer. There are some who say that it is possible to make money scarce without making it dear. There are some who say that to make it dear does not help to make it scarce. All I can say is that the trend is that the various weapons, of which monetary policy is one, will be successful in overcoming our difficulties.

Since this deep subject was referred to in a number of speeches from this side of the House during the debate on the Finance Bill and the Chancellor did not even deign to enter the debate to reply, will he answer these questions today? First, is he aware that the high Bank Rate is both increasing Government expenditure very heavily and increasing our remittances overseas; second, while we on this side do not accept his over-reliance on monetary weapons, is he not aware that the Bank Rate is not having the effect which he wants it to have on bank advances, and will not do so as long as the Bank of England continues to keep the Joint Stock Banks replenished so far as their cash basis is concerned?

That series of questions is no nearer to the possibility of dealing with this matter by question and answer than those raised before. All I say is that both sides of the House accept the view that the Bank Rate is one of the methods of control which it is wise to use—monetary policy is partly effected by the Bank Rate and partly by a general policy. I am not saying that we yet have absolute proof about whether the reintroduction of these methods will succeed or not, but I am very confident, as a result of the last few months, that we are beginning to overcome our difficulties, so long as we do not throw unnecessary spanners into the works.

Surely the Chancellor is aware that this anxiety is shared in all parts of the House and that there is great anxiety in the City of London among people of different views about whether this Bank Rate policy is working. Since the right hon. Gentleman says that he cannot answer it in question and answer, will he, having regard to the very grave position of sterling today, take an early opportunity of making a statement at the Dispatch Box in relation to sterling, and particularly the problem of the Bank Rate?

The last question which the right hon. Gentleman has asked has not been in the general public interest and has tended to accentuate our difficulties rather than to help them. I repeat that the results of the gains which we have made in the reserves and the results of the gain in the balance of payments in the last five months give us great confidence in the future.

If things are going as well as the Chancellor suggests, why does he keep on making speeches about coming disaster?

I do not say that they are going so well. I say that if we use these weapons sensibly and carry on a wise policy, we shall overcome our difficultles.

asked the Chancellor of the Exchequer if he will give consideration to the removal of the 30 per cent. Purchase Tax on hollow-ware to assist the industry to maintain full employment in face of subsidised dumping by Eastern European countries and Western Germany.

No, Sir. I do not think such a step would be justified.

Is the Chancellor aware that, since he imposed the tax last October, there has been considerable unemployment in the industry and considerable subsidised dumping? Will he reconsider this matter, for some very old employees of the industry are losing their jobs as a result of this?

That is another question. The question I was asked was whether, in view of the dumping of hollow-ware, I would consider altering this tax. We have no evidence such as that to which the hon. Member refers.

asked the Chancellor of the Exchequer if he will prepare plans to invite subscriptions to a loan for road construction.

No, Sir. I do not think this method of financing road construction desirable in present circumstances.

Does not my right hon. Friend agree that such a loan would not only hclp to defray the cost of building modern roads, which are so badly needed, but would also be a most effective way of attracting new savings? Would not people invest much more readily in a project of this kind, of which they would approve, than in the more conventional type of Government security?

That is a matter for consideration. I have tried to widen the general scope of saving.

asked the Chancellor of the Exchequer whether he will consider issuing a savings certificate, to be called a "par bond," on which no interest would be paid but which would be redeemable at any time at the same spending value as at the date when purchased.

No, Sir. I fear I could not accept this plan.

Does my right hon. Friend not consider that these par bonds would be an indication to the world of the Government's confidence in their ability to stabilise or decrease the cost of living? Does he not consider that many investors would purchase them to nullify a possible fall in the value of the £? Will he investigate a scheme being worked on similar lines in Finland?

Many considerations have to be taken into account in the issuing of Government bonds, and I must say I could not accept this particular suggestion.

asked the Prime Minister whether he is aware that the joint impact of the Government's economic policy and automation on large sections of British industry is giving rise to social problems which are causing great public anxiety; and whether he will state the Government's proposals to meet the situation.

The Government's policy is to safeguard full employment by improving our balance of payments and strengthening our reserves. It is only the failure to do this which should cause public anxiety and could give rise to widespread hardship. To achieve our object we must accept changes in the use of our resources and labour.

Is the Prime Minister aware that, while these general statements are all right, what is really worrying at the moment is that there seems to be no provision to enable men who may be displaced to become mobile and move somewhere else—there are no houses in which to live, no arrangements for travelling time or lodging allowances? Did the Prime Minister hear the replies of the Parliamentary Secretary to the Board of Trade today, when we were told that new factory building is being discouraged at this moment, thereby giving people displaced or affected by automation the great fear that there will not be jobs to which they can move, even if they accept this principle?

The right hon. Gentleman's fears in that particular case of automation are not justified. At present, all sorts of arrangements are being made in the Midlands, and in that area there is a great excess of demand for labour over the men available to fill the jobs. That is true in particular in respect of a recent dispute, upon which I do not wish to touch at the moment, where special arrangements have been made by the Ministry of Labour to ensure that anybody who becomes redundant shall be speedily re-employed.

May I press the Prime Minister on this issue? Setting up an office of the Ministry of Labour in a factory is mechanically the sensible thing to do, but it is not our information—will the Prime Minister check this?—that there are jobs or can be jobs available in Coventry. Of course, if this spreads to other towns—as it ought to do and must do very quickly—there will shortly be a run on jobs in many towns and men will have to move. If export figures continue to decline, there will be no jobs at all. [Interruption.] I am sorry but this is urgent, for we shall run into trouble unless we face this matter now. Will the Prime Minister consult industrialists and trade union leaders who are very worried about this and himself take some firm action?

I do not at all object to a series of questions on this topic. I fully realise its great importance. We have given it very careful consideration and will continue to watch it. There are certain things which the Government can do, but there are other things which industry is probably better left to do for itself without Government interference. I can assure the right hon. Gentleman that we are conscious that there is a problem here, but I do not take as pessimistic a view as he does about the problem of unemployment in the area to which he was referring.

Will the Prime Minister help hon. Members on this matter which is causing some anxiety in all quarters of the House and outside? He spoke of the Government wishing to transfer men from industries where they are regarded as redundant to industries where they can find employment. Would he be good enough to set forth in a White Paper, or in the OFFICIAL REPORT, what the Government have in mind about this and what they think it is possible for the Government to do to ease the strain?

I will certainly consider that. As the House knows, the Ministry of Labour has certain responsibilities in this matter—for instance, in respect of retraining and so on—which it has to discharge and will discharge to ease these transfers; but I will certainly consider the right hon. Gentleman's suggestion.

In studying these questions, will the Prime Minister bear in mind that one of the gravest consequences is what happens to the skilled craftsman of 45 or 50 who loses his job? Will he consider that problem in the light of the information given earlier by the Parliamentary Secretary to the Board of Trade, that the Government are making a change in their policy for the Development Areas and in the building of Government factories? Does he rule out the possibility of Government factories being built so that these men who lose their jobs may find other employment?

We had some Questions on automation the other day. I agree that the main problem is of the older man, and that is one of the matters which the Ministry of Labour has particularly under its care. I can assure the House that we are conscious of this problem. At the same time, as a nation we have to be careful not to get so rigid in this matter that we cannot do the redeployment that we have to do.

Is it not true that in the last few years thousands of men have moved into Coventry of their own accord and initiative and found accommodation? Is it not, therefore, equally true that these men will show initiative again and move to fresh areas where work is required and find accommodation once more?