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

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

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

Mr. Amory:

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