asked the President of the Board of Trade if he will make a statement on the progress of the negotiations for trade agreement with Yugoslavia; if he will circulate in HANSARD an outline of the discussions that have taken place so far, indicating the causes of the long delay in reaching a settlement; and if he will renew his efforts to secure agreement as speedily as possible.

Tentative proposals for a short term agreement were submitted a month ago to the Yugoslav Delegation, who referred them to their Government. We await their reply and until it is received it would be premature to make a statement on the course of these lengthy negotiations. I may say, however, that the Yugoslays asked for guaranteed delivery dates over a very wide range of capital equipment, and made it a condi- tion of any long-term agreement that we should give such assurances for certain items of equipment within periods which are not practicable in view of the other demands on our capacity. We explained that we were not prepared to guarantee delivery dates for capital equipment and both sides accordingly agreed to discuss the possibilities of a short-term agreement of limited scope. As I have said, the matter now rests with the Yugoslav Government.

Would the right hon. Gentleman say whether, in this agreement and in others, he has made any provision for such results as flow from the agreement to be carried to a reasonable extent in British vessels?

Yes, Sir. That is usually looked after in these agreements. It was certainly so in the Russian Agreement, and if agreement is reached here, there will be full provision to look after our interests in that connection.

In this short-term agreement which the right hon. Gentleman envisages can he give an assurance that we shall not be selling capital goods in exchange for current requirements?

Yes, Sir. I can give that assurance. If there is to be a short-term agreement, it will be on die basis of goods that can be currently supplied immediately on both sides.