asked the Under-Secretary of State for Commonwealth Relations what reply he has made to the communication of the Basutoland African Congress complaining of the amendment of Proclamation 59 of 1938 into Proclamation 12 of 1944 and criticising the inadequacy of the conditions of the Jones Inquiry into the ritual murders; and if he will authorise an investigation by a commission which would have the confidence of the Basuto people.

My noble Friend is considering, in consultation with the High Commissioner, a letter which he received from the Basutoland African Congress at the end of February. No reply has yet been sent.

Is the hon. Gentleman aware that not only the Members of this House but also the leaders of the Basutoland African Congress deplore these practices just as much as anyone, and would the hon. Gentleman consider the facts that the amendment to the Proclamation, which has substituted South African principles of law for British principles, and this one-man inquiry, have tended to worsen the position rather than better it? Would he also consider appointing a commission which would include representatives from other African countries, which would have the confidence of the Basuto people?

I accept that there is a strong feeling of horror, both here and in Basutoland, at these incidents, but I cannot accept the strictures which the hon. Gentleman directs against the Jones Commission which, after all, was appointed by a Labour Government, who were satisfied with the results, as, indeed, we are satisfied that it was an able and effective investigation. I would say to the House, however, that this is a problem which touches very closely the interests of the Basuto people. It is a complicated one and, therefore, I am sure that the House would wish my noble Friend and the High Commissioner to give the fullest thought to a particularly difficult legal problem.

asked the Under-Secretary of State for Commonwealth Relations how many African students from Basutoland, Swaziland and Bechuanaland respectively have received training in technical schools and are employed in the Civil Service or in skilled occupations in their respective territories.

In Basutoland 125 Africans who have had technical training, are employed in Government service. In Swaziland, six are so employed. No figures are yet available for the Bechuanaland Protectorate. It is not known how many of such persons in the three Territories are employed in skilled occupations outside Government service.

Is the Minister aware that the future of the Protectorates, as indeed of the whole of Africa, depends on the expansion of the numbers of technically skilled and responsible citizens? Having made a beginning, will the hon. Gentleman do everything he can to extend this development in the Protectorates for which he bears so heavy a responsibility?

I fully accept the hon. Gentleman's proposition, and I would say that we propose to establish a trade school as part of the plan for the development of education in the territory of Bechuanaland, which I hope will assist. The hon. Gentleman can be assured that we are as anxious as he is to develop this side of African progress.

asked the Under-Secretary of State for Commonwealth Relations how many students from Bechuanaland, Basutoland and Swaziland are studying at the universities in the Union of South Africa; and what provision is proposed for their university training when such universities are closed to them.

Thirteen African students from the High Commission Territories are now studying at universities in the Union of South Africa and it is understood that they can complete their courses.

After 1958 no new African students from the High Commission Territories will be admitted to universities in the Union of South Africa. University training will be available, as it is now, at the Pope Pius XII College, Basutoland, and at United Kingdom universities. It is hoped that some places may also be available at the University College of Rhodesia and Nyasaland.

Is the Minister aware that educated opinion throughout the world condemns South African education policy of segregating black students and even excluding them from education? Will he bear in mind that he owes it as a responsibility both to the Protectorates and to social justice to see that no student in the Protectorate who is capable of profiting by university education is deprived of it?

The reason that vacancies at Fort Hare College and Durban Medical School will no longer be available is that all the vacancies are required for Union students from now onwards.

While joining in condemning the action which has resulted in this very sorry position, may I ask the Minister whether he will consult the Colonial Secretary to consider making available to these students from the Protectorates such additional moneys as will be required to enable them to become students in some of the other African colleges which have been helped by our funds and in which we do not practise discrimination?

The use of other African universities, for instance in Eastern Africa, is a matter which I think should be investigated, and I will certainly undertake to carry the right hon. Gentleman's views further.

Will the hon. Gentleman assure the House that when these places in the Union universities are no longer available, the would-be students, for instance from Bechuanaland, who are capable of benefiting by university education, will not be in a worse position than they were before?

That is certainly our intention and hope.

asked the Under-Secretary of State for Commonwealth Relations (1) to what extent he has consulted Commonwealth Governments in the last six months about the relaxation of strategic controls on trade with China;

(2) if he will consult with the Governments of the Commonwealth with a view to arriving at a common policy on the subject of trade relations with China.

Some Commonwealth Governments do not maintain strategic controls on their trade with China and I do not think that a common policy for all Commonwealth Governments is feasible. Those which do maintain such controls are fully aware of the United Kingdom Government's practice and of our policy. There has therefore been no need for formal consultation with them during the last six months. Canada is represented on the Consultative Group at Paris and there is close and continuous contact between Canadian and United Kingdom representatives in that body.

Is the hon. Member aware that the Prime Minister of Canada recently told the Canadian House of Commons that there had been no official consultations between the United Kingdom representatives and the Canadian representatives on this subject and that he knew nothing of British representations in favour of relaxing the controls? As Canada is represented in this Group, is that not highly unsatisfactory? Will not the hon. Member take action to get some official co-ordination between Canadian and United Kingdom policy?

I think the hon. Member is mistaken in his interpretation of the Prime Minister's statement which, as I understand it, referred to formal representations. There has been informal consultation between our representatives in Paris throughout the last six months.

asked the Under-Secretary of State for Commonwealth Relations what steps he is taking to resolve the difficulties in British-Indian relations arising out of the difference of view regarding the Kashmir situation.

As Sir Pierson Dixon said in the Security Council on the 20th February,

" We approach the Kashmir question in the simple spirit of wishing to see a just and fair solution. We stand ready to consider our attitude to Kashmir on the merits of the cases put forward by both parties and in examining the cases put forward are deeply conscious of the vital necessity of making a positive contribution towards peaceful progress in the subcontinent. Her Majesty's Government's attitude is based on no other considerations whatsoever".

This continues to be the attitude of Her Majesty's Government in relation to the Kashmir dispute. I think that as this is more fully understood many of the present misunderstandings will be dispelled.

Is the hon. Gentleman aware that British-Indian relations were strained enough as it was over Suez and that the new situation places yet another strain on them? Is he aware that there is a widespread feeling that it arises out of British commitments under the Bagdad Pact? Is he aware of the dangerous implications of the present drift? What is he doing to halt the drift, in view of the misunderstandings which exist?

I would not accept the hon. Member's contention. No doubt he has seen, as I have seen, a statement within the last few hours by Mr. Nehru on the subject of India's relations with the Commonwealth. In the circumstances of Mr. Jarring's presence in the subcontinent—we all hope that his mission will have a successful outcome—I think it will be best to leave the matter at that point at present.

Contrary to the implications in the last question, is not it a fact that the policy of Her Majesty's Government in this matter is nothing more than an endorsement of the policies carried out by successive Governments, both Labour and Conservative, as a result of the 1948 and 1949 substantive resolutions in the United Nations, agreed to by Great Britain, India, Pakistan and all countries represented there?

indicated assent.

In view of this country's position in the Commonwealth, have the Government considered whether it is wise to intervene so actively in this Kashmir dispute? Nobody could want more than I that this country should take an active part in most United Nations activities, but is not this a rather special case where our intervention is almost bound to magnify the dispute and in particular to magnify danger to the future of the Commonwealth?

I am anxious, as we have always been anxious, to do anything we possibly can to help our fellow members of the Commonwealth to reach a just and proper solution to a very difficult problem.

asked the Under-Secretary of State for Commonwealth Relations whether he has yet received any replies or recommendations from Commonwealth Governments regarding his proposals for economic co-operation and development within the Commonwealth.

asked the Under-Secretary of State for Commonwealth Relations what replies he has received from Commonwealth countries regarding economic co-operation on underdeveloped territories; and when he will he ready to make a statement.

As I said on 21st February in answer to my hon. Friend the Member for Harrow, West (Sir A. Braithwaite), the conclusions which the Government reach in the light of the views of other Commonwealth Governments, when these are all received, will be communicated to the House. We have asked High Commissioners to approach those Governments whose replies are still outstanding with the object of eliciting early replies. It may still be some weeks before all these are received.

Is my hon. Friend aware that the whole House called for a bold and imaginative lead on this subject as long ago as last November? Has my hon. Friend's attention been drawn to recent speeches by Sir Roy Welensky, by the Australian Minister of Labour and by the Australian High Commissioner in London, which all add up to one thing —that some Commonwealth countries want a pooling of resources, a declaration of priorities, and a co-ordinated investment policy? Can my hon. Friend say whether those are the proposals which the Government have in mind?

The Government are very well aware, and my noble Friend is very well aware, of the great interest in this subject which exists on both sides of the House, but this is a matter in which we are anxious as far as possible to obtain co-operation with other members of the Commonwealth and they must surely be given proper time to consider a far-reaching and difficult problem.

While appreciating the size of this problem, may I ask the hon. Member whether he thinks he will obtain replies so that some discussion can take place in the House before the meeting of the Commonwealth Ministers this summer?

The hon. Member has posed his question with certain assumptions on which I have no comment to make.

Bearing in mind that the Commonwealth Economic Committee has already done a great deal of work in this direction and that a large amount of work has been carried out, is not it possible to get the Commonwealth Governments to expedite their answers or immediately to call together a meeting of Ministers to consider the matter?

It is perfectly true that considerable work has been done on estimating the raw material resources which are available in the Commonwealth, but what is at issue here is a question of financial policy which poses different problems as far as the Commonwealth Governments are concerned in so far as it is a question of providing the capital which is required. This is by no means easy when the majority of the Commonwealth countries are themselves net importers of capital.

On a point of order. Would it be possible to appoint an official interpreter so that we can understand the meaning of the hon. Member's answers?

That is not a point of order.

asked the Under-Secretary of State for Commonwealth Relations whether it is intended that the United Kingdom should extend to Ghana schemes of technical aid, similar to those operating for India, Pakistan, and Ceylon.

We are in consultaion with the Government of Ghana in this matter.

Would not it be in keeping with the desires of both sides of the House if, in anticipation of the final decisions of the Commonwealth Conference, the Government now tabled legislation to amend the provisions which prohibit the Colonial Development Corporation from operating in these areas? Will not the hon. Gentleman and his colleagues consider whether the greatest help which we could render to Ghana and many of these territories, pending their future industrial development, would be to ensure the stability of their primary products on which their lives so largely depend?

That is a totally different question, but if the right hon. Gentleman cares to put it down, I will do my best to answer it.

Can my hon. Friend give the House some idea of the kind of technical or financial aid which he may have in mind?

We are in consultation with the Government of Ghana about this matter. The Government of Ghana have had a very large number of matters to preoccupy them over the last few weeks and I feel it only right—and that it would be the wish of the House—that they should be given full time to consider the implications of this proposal, which is intended to be helpful to them and which, I know, will be accepted as such by the Government of Ghana.

asked the President of the Board of Trade the countries in Europe from which the exports of potash to the United Kingdom are subject to the arrangements of a cartel.

I have no detailed information, but imports from France, Western Germany and Spain have been in the hands of a single company. The present inquiry of the Monopolies Commission into the supply of chemical fertilisers will no doubt give additional information.

Can my right hon. Friend say whether there are any other countries which can act as sources of supply of potash for this country?

We get a little from Eastern Germany, but not very much.

asked the President of the Board of Trade how many applications he has received in the last two years for licences to export diesel engines to China; how many of these were allowed and how many refused; and what were the ratings and values of the engines in each case.

Sixteen applications have been made in the last two years. Four were not proceeded with and the rest were rejected, except that a licence was granted for one engine of 85 horse- power valued at £407. The applications refused had a total value of £741,872 and the horse-power ranged from 3½ h.p. to 300 h.p.

Is the right hon. Gentleman aware that these engines, which were on the U.S.S.R. embargo list until the autumn of 1954, are still on the embargo list to China, although at the moment they are being exported or re-exported through Russia and other eastern countries to China? Does not he think that it is a tremendous disadvantage to British businessmen that Eastern European countries should be earning profits which they might be earning here? Is not it humiliating to the Minister to realise that, while we may have a trade policy, we have, due to pressure from external sources, to operate within that trade policy an exceptions procedure which renders our whole position ridiculous?

As the hon. Member knows, the working of the China embargo is subject to consultation and agreement by the Paris Group, but that it has the unfortunate effects he says, I agree.'

On a point of order. As it is necessary to examine this subject very closely, I beg to give notice that I shall raise the matter on the Adjournment at the earliest possible opportunity.

asked the President of the Board of Trade what representations he has now received from the Federation of British Industries and other trade associations for the further relexation of the strategic embargo on United Kingdom exports to China; and what reply he has made.

I have received a letter from the Sino-British Trade Committee which represents the interested associations.

The letter presses strongly the case for aligning the strategic embargo on exports to China with the strategic lists for the Soviet bloc.

I told the Committee that full weight will be given to its representations; and my right hon. Friend the Minister of State, Foreign Office, informed the hon. Member for Dunbartonshire, East (Mr. Bence) yesterday that it is likely that this topic will be raised in the Bermuda discussions.

Although it was satisfactory to learn yesterday that this matter will be raised at Bermuda, now that there is general agreement both in British industry and in most parts of the House that the embargo has completely outlived its usefulness, cannot the President say that it is now British Government policy to try to secure at least a major relaxation?

I think that we might wait to see how the Prime Minister gets on in these discussions.

Could not the President assure us that it is now British Government policy to secure a relaxation and that the Prime Minister will be pressing for that in Bermuda?

That is the subject of the conversations.

Is not it a fact that, following Sir Anthony Eden's visit to Washington last year, the House was promised that the British representatives in the Paris Group would press in the Paris Group for a revision of the China embargo list? We have now learned from the Canadian Prime Minister that no such discussions have taken place in the Paris Group. Is not it time, therefore, that the British Government showed a little spirit and guts in this matter and took unilateral action?

The British representatives in the Paris Group have never disguised their view that some relaxation would be helpful.

Will the right hon. Gentleman take his Answer just a little further? Will he bear in mind that, after all, this country is not at war, and that our need for exports is getting stronger every year? Would not it be worth while for this country to resume its freedom to trade with whom it likes, in what merchandise it chooses and on what conditions it can get?

No, Sir. I think there are certain fields in which it is highly desirable that we should act in concert with our allies.

Can my right hon. Friend say what demand there is from China for our exports, and does he think that, if the embargo were lifted, we should export very much to China?

I should like notice of that question.

asked the President of the Board of Trade whether he is aware that at a meeting of representatives of the principal retailers' organisations convened by his Department in the autumn of 1956 the said representatives agreed to endorse a statement to be issued by his Department advising their member firms not to sell flick knives; and why the statement has not been issued yet by his Department.

The trade representatives were sympathetic to the object of the statement, but the action proposed would have required registration under the Restrictive Trade Practices Act, 1956. As an alternative, wide publicity was given to the reply made on 29th November last by the then Secretary of State for the Home Department to a Question from my hon. and gallant Friend the Member for Poole (Captain Pilkington), on the subject of spring-clip knives.

is not the right hon. Gentleman aware that the retailers' organisations are very perturbed about the situation, that the Minister himself pressed upon them the necessity of issuing a statement to the various retailers themselves, and that since that date people have been attacked with these knives? Will he do something before someone is murdered, as has happened in the past?

My information is that there was an encouraging response to the appeal to traders which was published in a number of trade journals. Of course, there is a legitimate demand for these knives from farmers and fishermen and it will be impossible entirely to prevent them from getting into circulation, but I understand that the situation is better.

asked the President of the Board of Trade if his attention has been drawn to the fact that film producers who were obliged to obtain loans from the National Film Finance Corporation prior to 9th March, owing to failure to re-enact legislation before that date, are obliged to pay interest for the additional period; and if he will take steps to arrange for such interest to be waived.

I have asked the National Film Finance Corporation to see that film producers are not put to extra expense in this way.

Is the right hon. Gentleman aware that we are most gratified to have that reply, because we were informed that film producers had to pay 6½ per cent. interest on many thousands of pounds for a number of weeks? We are delighted to know that the Government have taken these steps to put right an injustice which they created by their own laggard legislation.

asked the President of the Board of Trade the chief products of French, Belgian and Dutch colonies which will have to be taken into consideration by the United Kingdom in its attitute to the proposed Common Market in considering the inclusion of those colonies in the plan for a European Free Trade Area; and if he will make a statement.

Bananas, coffee, cocoa, citrus fruits, vegetable oils, rubber, hardwood and cotton are the chief products. We are consulting the Governments of the Colonies on the problems raised, and I am not in a position to add to the Answers given to Questions by my right hon. Friend, the Chancellor of the Exchequer on 26th February and 5th March.

As the inclusion of these territories puts a completely different complexion on the whole Common Market plan, will my right hon. Friend give an assurance that he will not enter into any commitments without first consulting the Colonies and obtaining their agreement?

That consultation is now taking place, and my right hon. Friend the Secretary of State has called a conference of colonial officials.

Will my right hon. Friend give an assurance that the consideration of the primary products coming from these countries in no way prejudices his own declaration that British agriculture will be excluded from any considerations of this country going into the Common Market or the Free Trade Area?

Yes, Sir.

asked the President of the Board of Trade if he is now in possession of details of the tariff which the Messina countries propose to apply to products of their own colonial territories and to those of countries outside the Common Market area.

I am not yet in a position to add to the reply which I gave to my hon. Friend on 14th March.

Does my right hon. Friend appreciate that, while we know that the Messina countries are going to reduce their tariffs between themselves phased over a period of fifteen years, we have absolutely no information as to the speed with which tariffs will be raised against the produce of other countries, including our own Colonial Territories, that this is a matter of great concern to Commonwealth producers, and that the lack of such information is jeopardising the popularity in this country of our association with the Free Trade Area?

I fully appreciate all that my hon. Friend has said. We want this information as soon as we can get it, and we understand that within a very few days the full text of the Treaty will be available.

asked the President of the Board of Trade what action he proposes to take to increase exports from the United Kingdom, in view of the renewed demand for imports which will follow the increase in investment envisaged by the Government.

The Government's aim is to reduce inflation and thereby help the export trade. We shall continue to assist exporters through the direct services provided by the Government and, as necessary, by negotiation with other Governments.

Does the right hon. Gentleman appreciate that his reply is the very reverse of reassuring? Does he realise that essential capital investment will provoke another severe balance of payments crisis unless there is a very large increase in exports? Does he also appreciate that the gloominess of the prospect is in no way relieved by the fact that production has been completely stagnant since 1955?

No, Sir.

asked the President of the Board of Trade what assurances he has received from the manufacturers of electronic valves and cathode ray tubes that restrictive agreements referred to by the Monopolies Commission report on that industry have been dissolved.

There is no occasion for the manufacturers to give me assurances. I understand that the price-fixing agreements have in the main been abandoned. Any that remain have no doubt been registered under the Restrictive Trade Practices Act.

As the President kindly told me in a letter that he had been in error in informing the House that certain recommendations of the Commission had been adopted by the industry, would he now let the rest of the House into the secret? Can we know, because I do not think we do at present, what agreements mentioned by the Monopolies Commission have now been abandoned by this industry?

The Report records in page 1 that, as from 1st September, 1956, price-fixing by agreement was abandoned.

asked the President of the Board of Trade if he will explain why he is now refusing import licences for goods from Eastern Germany, which were, until October last, allowed into this country.

I assume the hon. Member has in mind imports under barter deals. In these cases, we have to see what is the nature of the export to be taken in exchange.

Naturally, the President would assume that, because he knows that there is no commercial trade agreement, so that it must be barter. Will he therefore answer the Question? Why is it that he has been allowing these imports and exports, on a barter basis. but, since last October, he has been stopping the import of some of these goods? For what reason? What change has there been since last October?

The only change, if it is a change, is that we have not been able to get the purchases from Eastern Germany we had hoped to get under a barter deal, and, therefore, we are not going to give the import licences unless they do their share of the bargain.

Is not it exactly the reverse? Are not our manufacturers in this country desirous and anxious to have these imports, and, in fact, has not the President himself stopped the goods coming in? Is not it the case that our goods, which are mainly Lancashire textile goods, have been desired by the East Germans, who are anxious to get them? Why hold up trade?

We have to look at each of these barter deals on its merits and see that both parties play fair.

asked the President of the Board of Trade what steps he took to have an observer at the recent Leipzig Fair and whether he will make a statement on the report he has received from this official.

I would refer the hon. Member to the Answer I gave him on 31st January.

Is the President aware that that Answer cannot apply to this Question, because that was before the Fair was held? I am now asking the Minister what steps he took to have someone there. Can he tell us whether anyone did go, whether they gave him any report, and whether or not eighty-eight firms, including such reputable names as Rolls-Royce, went with his knowledge, consent and backing? Can we have a further statement?

Officials went from the British staffs in Germany, because we have no relations with Eastern Germany. Therefore, it had to be an unofficial observer. The report, when it comes, will be confidential.

Is not it time the right hon. Gentleman shook up his ideas on this question? While we are aware that we have no diplomatic relations with Eastern Germany, is not it a fact that the Leipzig Fair is attended by sellers and buyers from all over the world? Are not we losing export trade by the rather slack attitude which the Government take about East German relations?

I have no reason to think that we did not cover the Fair properly.

In view of the unsatisfactory nature of the reply, and the fact that there is obviously a need for the President to know that the West Germans are doing an increasing trade with Eastern Germany, I beg to give notice that I shall raise this matter on the Motion for the Adjournment.

asked the President of the Board of Trade what percentage of the goods in the Soviet purchasing programme presented to the Government by Mr. Malyshev during his 1956 visit are subject to the strategic embargo; and what is the total value of United Kingdom exports thus held back.

It is estimated that between a third and a half of the goods in the Soviet purchasing programme are subject to the strategic embargo. I am not in a position to answer the second part of the Question.

Does not the President think that this embargo has become largely obsolete, and can he at least assure us that this matter is to be raised in the Bermuda conversations?

No, Sir. I should not have thought that the embargo was obsolete, and I have no idea whether it is to be raised or not.

asked the President of the Board of Trade what trade agreements he proposes to make with the Union of Soviet Socialist Republics for the provision of non-dollar oil, newsprint and timber.

None, Sir. These are matters for private commercial negotiation.

Will not the President move in step with our French Allies who, last month, negotiated a treaty with the Soviet Union for the supply of goods of this kind, valued at about £200 million? Why, if we can get these goods from the Soviet Union and other Soviet bloc countries, do we constantly turn our faces against them?

We are not turning our faces against them. Imports of many of the main articles supplied by Russia come in free. Anyone who wants to can buy them.

asked the President of the Board of Trade what financial and other support Her Majesty's Government intend to give to British firms participating in the forthcoming Poznan Fair.

The services of my Exhibitions and Fairs Branch have been made available to co-ordinate the exhibits of British firms showing at Poznan and there will be an official stand. Her Majesty's Ambassador in Poland is arranging to hold a reception in the pavilion housing these exhibits.

Is the President aware that the American Government are to build a pavilion of some 44,000 square feet in Poznan, and that the American Government are providing nearly 4 million dollars for the erection of American business stands at foreign fairs such as this? How does he think that compares with the disgraceful record which we showed at Poznan last year, where our contribution was four flagpoles?

Our hall this year is one of 12,000 square feet. I am told it will be a great improvement on last year.

Would my right hon. Friend agree that the four flagpoles were a more valuable contribution than four groundnuts?

Without embarrassing the President by asking him how many flagpoles he is sending this year, may I ask him whether he recognises that the Government are in a very difficult position this year in that they are listening to American dictation on the question of our trade relations, not only with Poland and Eastern Germany, but with China and the Eastern bloc generally, while, at the same time, American business firms, even with the backing of the American Government, are getting in very fast, so that, when there is a sudden thaw in American Government policy in this respect. we shall have been left behind?

I should like to assure the right hon. Gentleman that we are extending our trade with Poland, and that we have had some very useful conversations in the last few weeks.

asked the President of the Board of Trade the values of imports from dollar sources in the years 1954, 1955. 1956, respectively, of cereals and cereal preparations, animal feedingstuffs, tobacco and tobacco manufactures, wood, cotton, petroleum and petroleum products, and newsprint, dis-

asked the President of the Board of Trade what expenditures of dollars have been incurred on the import of tobacco for the years 1954, 1955 and 1956, respectively; and what percentage this represents of total tobacco imports into the United Kingdom.

The c.i.f. values of the tobacco and tobacco manufactures imported from the dollar area, including Canada, in 1954, 1955 and 1956, were respectively £47·8 million, £55·6 million and £47·6 million or 62·7 per cent., 64·3 per cent. and 59·1 per cent. of total tobacco imports. The imports for these years included tobacco worth $8 million, tinguishing in each case between Commonwealth and other dollar sources; and what proportion dollar imports are of total imports in these commodities.

As the Answer contains a number of figures, I will, with permission, circulate it in the OFFICIAL REPORT.

May I ask the right hon. Gentleman whether he is satisfied that we are doing all we can to increase our trade with Commonwealth and non-dollar countries, and whether, at the same time, he is satisfied that we are not permitting political prejudices to overcome our economic needs for the importation of non-dollar raw materials and food?

Yes, Sir.

Does not the Minister agree that a careful study should be made of this problem in order that future expenditure can be increased in the sterling area?

Yes, Sir. We are constantly studying the problem.

asked the President of the Board of Trade what reductions he contemplates in the allocation of dollars for the import of tobacco from the 1957 crop.

This year's allocation has not yet been made.

asked the President of the Board of Trade the imports of South African and Japanese canned pilchards, separately, in each of the last five years, to the latest convenient date.

As the answer contains a number of figures I will, with permission, circulate it in the OFFICIAL REPORT.

Is the President aware that the very large imports of South African canned pilchards have been a

asked the Chancellor of the Exchequer the commencing salary of a chief executive officer at September, 1939, May, 1945, October, 1951, and January, 1957; what salaries would have been necessary on the last three dates to compensate for changes in the cost of living and taxation while maintaining the same net purchasing power; and how the net purchasing power of the salaries actually given varies, taking the September, 1939, figure as 100.

Taking the case of a chief executive officer who is married with one child, and assuming the net purchasing power of his commencing salary in September, 1939, to be 100, the corresponding figures would be 51·2 in May, 1945; 48·5 in October, 1951, and very great embarrassment to the small but important Cornish fishing industry and that the new agreement he has made with Japan in relation to Japanese imports is causing consternation in Cornwall?

It is true that imports from the South West Africa territory have increased very much, but Japan has a very small quota, and my information is that none has yet arrived.

Should I be interpreting these figures correctly if I said that they reveal that between September, 1939, and October, 1951, the standard of living had fallen to below 50 per cent. and that since then it has recovered to something approaching two-thirds of the 1939 standard? Is my hon. Friend aware that these figures are typical of practically all the middle classes? Will he impress upon his right hon. Friend that we look forward to another instalment in the recovery on 9th April?

In view of the untimely—or timely—demise of the Middle Class Alliance sponsored by the hon. Member, is the Financial Secretary now prepared to leave these matters to be settled by arrangement between the Treasury and the trade unions concerned?

asked the Chancellor of the Exchequer if he will give an estimate of the cost to the Revenue of increasing the child allowance for Income Tax purposes from £100 to £120 per child on all children over 11 years old only.

About £11 million in a full year.

Does not my hon. Friend agree that for a very small sum the Treasury could give very great help to people whose children are reaching the most expensive period of their lives, and it would, in addition, be a very great incentive to parents to keep their children at school after they reached the age of 15 years if the child allowance were graduated in this way?

My hon. Friend will realise that that is a matter falling within the scope of the Budget, which I cannot anticipate.

asked the Chancellor of the Exchequer if he will give an estimate of the proportion of the farm subsidies and production grants which return to the Exchequer in taxation receipts.

Not enough is known about the distribution of farm subsidies and production grants betwen farmers in different income groups to enable an accurate estimate to be made; but the proportion is probably less than 10 per cent.

Does not my hon. Friend agree that it would give the public a much truer picture of farm subsidies if the Chancellor could have a sample test taken of the balancing figure of tax paid against the subsidies? There is a great deal of misconception in the public mind. My own guess is that the balancing figure is nearly £40 million a year.

I think that that is unlikely to be true, because the total amount of tax on farmers' incomes is not much more than 10 per cent. of the amount of the subsidy.

If this argument is to be raised, would not it apply to many other forms of public expenditure, such as education?

asked the Chancellor of the Exchequer whether he has yet surmounted the practical difficulties in the way of extending the scope of the scheme to relieve old-age pensioners of the additional duty on tobacco, introduced in 1947, to include persons drawing National Assistance benefits but not a State pension; and when the new arrangements will come into force.

I am afraid that no practicable solution to these difficulties has been found.

In making any possible future adjustments, will my hon. Friend bear in mind the fact that this small category of persons includes a number of people suffering real hardship and need?

Yes, Sir. I recognise that these arrangements, which were started in 1947, involve a number of anomalies, but neither Government have yet found the means of removing them.

We debated these anomalies in our discussion of the Finance Bill last year. If, after all these months, the Government have not found the answer, will the hon. Member now give effect to the suggestion made from these benches, that the Government should wipe out these concessions in return for a really generous increase in the old-age pension?

asked the Chancellor of the Exchequer if he is aware of the concern among university teachers aft his decision that the implementation of the new salary scales shall be deferred until 1st August; and if he will reconsider this decision.

The increases run from the beginning of the next academic year, which the Government have decided is in all the circumstances the right starting date.

Is the Financial Secretary aware that the satisfaction derived from this new salary scale is almost totally destroyed by the decision to delay its coming into effect until fifteen months after the claim was first put in? Will he take into account not only the hardship being suffered by university teachers today, but also the fact that more and more teachers, especially of science and technology, are leaving the profession to go into industry every month?

Yes, Sir. As the hon. Member indicates, it was the problem of maintaining the level of recruitment to this profession which was the main factor under consideration in the review of salaries. I think that that has been met by the announcement of the introduction of the new rates from the beginning of the next academic year.

asked the Chancellor of the Exchequer on what items of dollar expenditure he is expecting to see reductions in order to meet the increased cost of oil from dollar sources.

The extra burden of buying non-sterling oil is one which we must meet by expanding our export trade.

Does my right hon. Friend mean that when dollars are short for essential commodities, apart from oil, no effort whatever will be made to cut down the spending of dollars upon any commodities which we can comfortably do with less of?

My hon. Friend will appreciate that imports have to be paid for, wherever they come from, and the object of the Government's policy is to improve the general trade balance.

asked the Chancellor of the Exchequer if he will make a statement on the application for an American-controlled company to take over a controlling interest in the shares in the British South West Africa Company.

The Tsumeb Corporation, a South African mining company controlled in the United States, was given permission under the Exchange Control Act to make an offer for the shares of the South West Africa Company. It is our policy to permit such investment in the sterling area unless it would result in any actual disadvantage.

Permission was given on the condition that if the Tsumeb Corporation's offer were accepted it intended to maintain and if possible increase the output of vanadium from the mine which would, of course, continue to be available to United Kingdom purchasers for sterling; that it intended to use its resources to develop the properties of the South West Africa Company, and that it would not seek to transfer the domicile of the company outside the United Kingdom.

As the House will be aware, however, a British mining group, headed by New Consolidated Gold Fields, has now obtained control of the South West Africa Company.

This Question was put down before the last development referred to by the right hon. Gentleman, but in view of this history—upon which we have been pressing the Government for several weeks—and in view of the disastrous consequences of the Government's decision in regard to Trinidad last year, will the right hon. Gentleman —despite the happy ending in this case, which we all welcome—take another look at these applications and see that a much stricter view is taken on the part of the Treasury of applications by American companies to buy up vital Commonwealth assets?

I realise that the Question was put down before this development took place, but a question of general policy is involved here. As the right hon. Member will remember, at the conclusion of the conference which took place in September, 1949, between the Americans, the Canadians and ourselves, a statement was put out that it was of vital importance to increase dollar investment in the sterling area. We are constantly urging the Americans to follow good creditor policies, and it would be wrong to be too obstructive about investments, provided that we are confident that no national interest is prejudiced. In this case, given the conditions, which were agreed, we were confident that no national interest was prejudiced.

asked the Chancellor of the Exchequer the approximate amount of the West German post-war debt to the United Kingdom in December, 1951, and December, 1956, respectively.

In December, 1951, the amount of the United Kingdom claim for post-war economic assistance to West Germany was £201·8 million. Under an agreement with the Federal Republic, signed in February, 1953, the United Kingdom accepted as full and final discharge of the debt the payment of £150 million. In December, 1956, the amount of the debt was £120 million.

Since no Conservative Member was more critical about what used to he called unrequited exports when we on this side of the House were in office than was the right hon. Gentleman himself, and since these were unrequited exports at the time, will the right hon. Gentleman, quite fairly, now pay a tribute to the fact that this Government have been happily living on the proceeds of these unrequited exports in our E.P.U. settlement for many years; and, further, will he recognise that the instalment of Adenauer aid and which the Government have accepted of £75 million would not have been possible but for the surplus we had in our trading relations with West Germany during the period of the Labour Government?

That raises a great many questions. No one was more critical of the policy initiated in Germany when these debts were incurred than I was, if I may say so.

asked the Chancellor of the Exchequer what boring test has been made with his sanction by the Imperial College of Science and Technology to test the stability of the unsupported campanile at the Imperial Institute; and what was the result of such test.

I am informed that borehole tests by a firm of specialist contractors were started last October and completed early this year. A final report will be made very shortly to the architect retained by the College for the expansion scheme.

In view of the conflict surrounding the proposal for the demolition of the Imperial Institute, will the Minister say whether he has taken any—and, if so what—expert architectural and engineering advice about whether the tower would survive unsupported?

These tests are designed to enable a decision to be taken on that point., I understand that the tests are being made by one of the most expert firms for the purpose.

asked the Chancellor of the Exchequer the total amount repaid in post-war credits during 1956; and what is the amount now outstanding.

The amount of post-war credits repaid in the calendar year 1956 was approximately £17·4 million. The total amount now outstanding is estimated at about £466 million.

Does not my hon. Friend think that it is altogether deplorable that successive post-war Governments have withheld this vast sum of money from the people to whom they owe it while at the same time insisting on the prompt payment of taxation and other debts? Further, may I ask whether he could once again consider this question of the prompt payment of post-war credits in case of hardship, which could quite easily be defined through the machinery of National Assistance?

The question of the future of post-war credits is one within the scope of the Budget which I must not anticipate, but my hon. Friend will, no doubt, recall that the conditions of repayment of these credits have been greatly improved since the party opposite went out of office.

Since we no longer expect Her Majesty's Government to take much account of the views of the House of Commons on these questions, will the hon. Gentleman at least take action on the decision—if one can use that word—of the Tory Party Conference of two years ago, which would appear to be quite mandatory on hon. Members opposite? If he desires to know how to implement what I am sure is the will of the entire House in this respect, will he look at the advice given by the Leader of the Opposition in April, 1955, on how best this question could be dealt with?

asked the Chancellor of the Exchequer the net yield, after allowing for refund, in each of the last three financial years of Schedule A tax, and the estimated cost of collection in each year.

The net yield of tax assessed under Schedule A, after allowing for discharges and repayments, in each of the last three financial years is estimated at £94 million, £97 million and £92 million respectively. Separate figures for the cost of collection of this tax are not available.

Will not my hon. Friend agree that, in view of the great care with which people try to avoid paying as much of this tax as possible, the cost of collection is probably very high, and that, as the rates of householders have gone up substantially this year, and are likely to go up further next year, the retention of this tax, whose philosophic basis seems to be quite unsatisfactory, remains a very strong disincentive to potential house-owners?

It seems unlikely that the cost of the collection of this tax is a very high proportion, since the total cost of raising all Inland Revenue dues is less than one-third of the yield of the Schedule A tax alone.

asked the Chancellor of the Exchequer what progress has been made in obtaining the more up-to-date statistical information and the improvement in economic advice which his predecessor indicated as necessary in the Budget statement on 17th April, 1956.

The Prime Minister, when Chancellor, made a statement on 1st August, 1956, setting out an immediate programme for the improvement of economic statistics. I am glad to say that with the co-operation of business and the public, considerable progress has been made in getting more comprehensive and up-to-date information. For example, a larger sample of firms now provide quarterly figures of capital investment and of stocks, and also, for the first time, of profits. Quarterly estimates of national expenditure and its components were published for the first time in January, 1957.

I concede that the reply of the right hon. Gentleman indicates that there has been some improvement in the statistical information, but does not it also suggest that there has been no improvement whatever in the quality and quantity of the economic advice available to the Chancellor? Does the present Chancellor confine himself still to last year's Bradshaw, or is he looking at this year's Old Moore's Almanac?

The situation has improved.

asked the Chancellor of the Exchequer the approximate yield of Purchase Tax on musical instruments for the latest available year.

Excluding gramophones, radio-gramophones, record-players, and records, the yield from musical instruments in the calendar year 1956 was nearly £1 million.

Against that pitifully small sum will the Minister ask his right hon. Friend to consider, when thinking about repealing this tax, that it is a disincentive to real as distinct from recorded music, and that instrumentalists are the only professional men in the country who have to pay tax on the instruments by which they earn their living? Is he aware that, whereas every other country subsidises this dollar-earning industry, we are taxing it?

I do not regard £1 million as a pitifully small sum, but my right hon. Friend has noted the point made by the hon. Member.

asked the Chancellor of the Exchequer what part of the figure of £54,500,000, representing the total net increase in salaries and wages provided for in the Supplementary Civil Estimates for the year 1956–57, applies to non-industrial civil servants.

Very approximately, £20 million.

asked the Chancellor of the Exchequer if he is aware that 30 per cent. Purchase Tax has been imposed on the safety device for cookers which won the award in the international competition; and as safety attachments are now fitted to electric and gas fires, free of Purchase Tax, if he will reconsider his decision.

My right hon. Friend has noted the hon. Lady's suggestion.

Will my hon. Friend convey to his right hon. Friend that I should like him to note my cooperation with the hon. Lady opposite in this matter? May I have an answer?

The answer is, "Yes, Sir".

asked the Chancellor of the Exchequer if he will now publish figures of sterling balances quarterly instead of twice yearly.

The Government believes that the practice, established by its predecessors, of publishing these figures only half-yearly with the Balance of Payments Estimate remains the best. Figures for the end of 1956 will in fact be published at the beginning of next month.

While we recognise that the Government have not had any ideas since 1951—except bad ones—may I ask the right hon. Gentleman to recognise that at a time of great international complication in our -gold and dollar reserves, it is vital to have more up-to-date figures of sterling balances in order to appreciate them; and, since we have nothing before the House or the country later than the sterling balances at June, 1956, is the right hon. Gentleman satisfied about that or is he still looking up the trains in last June's Bradshaw?