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Seanad Éireann debate -
Wednesday, 20 May 1942

Vol. 26 No. 14

Emergency Powers (Importation of Fabrics) Order, 1942—Motion to Revoke.

I move:—

That Seanad Eireann is of opinion that the Emergency Powers (Importation of Fabrics) Order, 1942, should be revoked.

The Importation of Fabrics Order was made on March 13th and its object according to a statement made in the Dáil by the Minister for Supplies was to secure that the fabrics available for this country from Great Britain should be taken by importers here in the manner most advantageous to this country under present circumstances. The Order was not made for the purpose of protecting any Irish industry, and it was not, I assume, the Minister's intention to reduce the total fabrics imported from Great Britain. In his statements in the Dáil in reply to questions by Deputy Mulcahy, the Minister appeared to base his arguments in favour of the Order on two main assumptions, firstly, that all the fabrics covered by the Order were at the date of the Order restricted by the British Government as to the total quantity to be exported to Éire and, secondly, that this Order would secure that the total quantity available to us will be in the form of the cheapest or most suitable cloths.

My reason for moving this motion is that I hope to be able to convince this House that the Minister's arguments were not based on facts — that he was quite wrong when he stated in the Dáil that artificial silk fabrics were restricted as to quantity when exported from the United Kingdom to Éire, and that the Order has already reduced the quantity of fabrics available for this country, thereby increasing unemployment.

I would like to make it clear at the outset that I would be in favour of any steps which could be taken which could secure that such fabrics supplies as are available from Great Britain should be of types and quantities required for essential clothing at prices which the majority of our people can afford to pay, provided, of course, that nothing is done to prevent the total amount available from reaching this country. It is because I am satisfied that the Importation of Fabrics Order has reduced and may further reduce the total quantity available without increasing the import total of cheaper fabrics that I believe this Order should be rescinded as soon as possible.

In order that Senators may understand the position, I propose to set out briefly the steps taken by the Minister in relation to this Order. The Order itself prohibited after April 20th last the importation, except under licence, of all woven and knitted fabrics made of cotton, linen, wool, silk or artificial silk except floor coverings.

Shortly after the Order was made— in or about March 20th — a circular, No. I.F.1, was issued by the Department of Supplies in which it was stated:—

"In order to facilitate the negotiation of transactions by importers, the Minister for Supplies gives notice that the grant of licences will be conditioned by considerations of type and price. For the present, licences will be issued on application for the classes of goods set out hereunder provided the prices are within the limits shown. Applications for licences for fabrics other than those set out below or for fabrics of the types set out below at prices higher than the maximum prices set out below will be considered and licences may or may not be granted."

Then followed in circular I.F.1 a list of classes of fabrics and maximum prices. I criticised this circular in detail in the Seanad on March 24th and I need not now repeat what I said on that occasion. The Minister for Supplies was not present. I think I convinced the House that the prices in that circular showed only little knowledge of the actual prices at which goods could be obtained. That my criticism was fully justified is shown by the fact that the Minister mended his hand, and in or about April 20th a new circular, No. I.F.5, was issued, replacing I.F.1.

The preamble to the circular remained the same, but the maximum prices were in all but four cases very substantially increased. The increases varied from 15 per cent. to as much as 87 per cent. For instance, cotton flannelette and shirting were increased from 1/4 to 2/6 and art silk dress cloth from 3/6 to 5/-. Practically one month had elapsed before the new circular was issued, and during that time no importer could buy fabrics from Great Britain with any certainty that he would be allowed to import them unless delivery could be guaranteed before April 20th or unless they came within the classes or prices contained in the first circular — a circular containing prices some of which were absurd and which was later withdrawn. It is impossible to estimate what quantity of fabrics were lost to this country during that month, but to my knowledge some goods were offered during this period which had to be refused. Under present conditions it is quite impossible to guarantee delivery within one month, even if goods are finished and ready for despatch, which is rarely the case when orders are placed with manufacturers.

After April 20th, importers here representing manufacturers, makers up of garments and the distributing trade, applied for licences for goods which they had on order which did not come within the classes or maximum prices in circular I.F.5 and which they had been unable to get sent to them in order to arrive before April 20th. In many cases these licences were refused and the importers had no option but to ask the suppliers in Great Britain to cancel the orders. As far as I can ascertain, licences were granted where the goods had been invoiced or were lying in the customs and in many other cases refused. I do not know the quantity of goods which had to be cancelled and which were lost to Éire, but I fear the quantity was not inconsiderable.

On the 13th May a notice appeared in the Press which showed that the Minister had again changed his mind. This notice did not alter the Order nor did it withdraw circular I.F.5, but it stated that import licences would be granted for the importation of fabrics without reference to type or price, where the goods arrived in this country before June 30th next. This notice is an admission by the Minister for Supplies that his original date of April 20th was wrong, and also an admission that he was not justified in refusing licences to importers who had applied to him before this later notice appeared.

This latest action of the Minister seems to me to be open to criticism, in that it gives a definite advantage to the importers who ignored his two circulars and went on ordering fabrics from Great Britain. Importers who stopped placing orders for fabrics not covered by the Minister's circulars are in a much more unfavourable position, as they have now very little time in which to place orders and to get delivery. The time taken for goods in transit from Great Britain varies greatly, and six weeks and longer often elapse between the date of despatch and the date of delivery.

I have stated briefly what has actually occurred under this Order so that the House may have knowledge of the facts. I could easily criticise the circulars and notices issued by the Minister in greater detail, but I do not propose to do so now because it is the whole policy which I believe to be wrong and injurious to trade and employment at a time of exceptional difficulty for all concerned.

The fabrics prohibited under this Order are those made wholly or mainly of cotton, linen, wool, silk or artificial silk and I propose to deal with these separately as the circumstances differ in each case. I will take linen first. Production of linen fabrics for civilian purposes ceased some time ago. If, as I am informed, there are still some stocks of linen cloth which the British Government is allowing to come to Éire, I cannot think of any reason why it should not be allowed to be imported here. The quantity is small and a refusal to take these goods cannot possibly result in increased imports of other fabrics. It would mean simply a loss to this country. To the best of my knowledge and belief the position with regard to real silk is almost identical with that of linen and I have not the slightest idea what the Minister expected to achieve by including linen and real silk fabrics in the Order. The importance, however, of linen and real silk fabrics is not nearly as great as that of other fabrics covered by the Order.

The action of the Minister with regard to artificial silk fabrics, which are of great importance, is incomprehensible to me. He stated in the Dáil, in reply to a question, that exports of artificial silk fabrics from Great Britain to Éire were restricted as to total quantity. Everyone in the trade knew that very large quantities of artificial silk fabrics had been imported this year from Great Britain—according to my information, at least three times those imported for a similar period in 1940— and the trade knew that British suppliers had stated as late as the end of April that there were no restrictions on exports of fabrics which were 100 per cent. artificial silk. When the Minister made his statement in the Dáil I was amazed but I assumed that he had some secret information of which the trade in Great Britain and Éire was unaware.

Accordingly, I took steps to ascertain the true position from a responsible authority in Great Britain and I was informed definitely on May 9th that there is not and has not been since the outbreak of the war any restriction on the export to Éire of fabrics which are 100 per cent. rayon. In view of this undoubted fact, I would like to know on what grounds the Minister justifies his action in refusing licences for the import of artificial silk fabrics over 5/- per square yard. He admitted in the Dáil that importers had been obliged to cancel orders for rayon piece goods for which delivery had been promised by United Kingdom exporters.

According to information given to me by an undoubted authority in the United Kingdom, it is quite clear that as long as the present position continues the exclusion from Eire of certain kinds of rayon fabrics which are not now available will in all probability mean a reduction of the total quantity of exports of rayon fabrics to Eire. For example, I am informed, prohibition on imports of rayon fabrics over 5/- per square yard or of rayon fabrics for curtains or upholstery could not be compensated by an increase in the quantity of cheaper rayon fabrics not available or likely to be available during the next few months.

As long as artificial silk fabrics are unrestricted as to quantity in export from Great Britain, it will not help the poorer classes to prevent such better quality fabrics as are available from entering this country. In fact, it will have a contrary effect as the total quantity will be less and the richer classes, unable to obtain the best quality, will buy whatever is available, with the result that less will be left for the poorer people. It is ridiculous to my mind, for the Minister to state as he did in the Dáil that there is an inducement for importers to use the most expensive class of goods because on these they make the most profit. Generally speaking, the retail trade is divided — some cater for the better class trade, and some for the poorer classes. Each retailer will buy as far as he possibly can the goods his customers require. A retailer catering for the lower class trade will buy the cheapest fabrics he can get, and if he is forced to buy fabrics at a high price the probability is that he will get a lower profit owing to the keen competition which still exists in the drapery trade.

As long as there is no restriction in quantity on artificial silk fabrics exported from the United Kingdom there is, I suggest, no case for restricting their importation here and even if the Minister will not rescind the Order as a whole he should remove artificial silk fabrics from it unless and until restrictions on export are imposed in Great Britain, and until he is satisfied that any restrictions on imports which he may make will fit in with the export restrictions on the other side so as to secure that all fabrics available will be imported to this country. Before I leave the question of artificial silk fabrics I would like to say that the authorities in Great Britain have acted in a generous manner in allowing large quantities of art silk fabrics to come to this country. The greatly increased import is, I believe, largely due to the shortage of cotton fabrics and it has been a great gain to us to be able to obtain these artificial silk fabrics to take the place of cotton fabrics which could not be obtained here or in Great Britain.

The position with regard to fabrics made from cotton or partly from cotton and partly from artificial silk is quite different from that of artificial silk. Owing to the shortage of cotton fabrics the British Government have considered it necessary to restrict the export of fabrics containing cotton, with the exception of curtain net.

According to my information, this restriction operates in the following manner: Every United Kingdom manufacturer or supplier who exported cotton piece goods to Eire during the year 1940 is permitted to export, during a definite period, 20 per cent. of the quantity of cotton piece goods exported by him in 1940. The present period is from April 1st to June 30th, 1942. This does not provide any guarantee that Éire will receive a total of 20 per cent. of its 1940 imports of cotton piece goods, because some United Kingdom suppliers may not be in a position to export goods equal to their full export quota or may be unable to obtain orders for the only types of piece goods which they are able to offer.

It will be readily understood that many British manufacturers have great difficulties to contend with as a result of war conditions, and if Éire buyers do not take whatever piece goods are available during the next few months, there is every danger that they may have to do without. This is inevitable under present circumstances. I, personally, made inquiries as to whether, if Éire buyers did not wish to take what cotton fabrics were offered by British suppliers, it would be possible to provide other fabrics so as to bring the total export to Éire up to 20 per cent. of the 1940 exports, and I was informed that under existing conditions this was not practicable. The Minister stated in the Dáil that it was his intention to secure that such quantities as can be obtained will be secured in the form of cheaper cloths. He did not give any indication as to how this was to be done. My information is that it is quite impracticable as far as the next few months are concerned.

It seems to me obvious that it is impracticable. If a British manufacturer has a 20 per cent. allocation given to him for export to Éire, he can only use that by sending out the goods which he makes. It is useless to ask a manufacturer of curtain or furnishing material to send, say, shirtings or dress fabrics in place of furnishing cloth on order, if he does not make suiting or dress materials. It is just as useless to ask a British wholesale house to send substitutes for orders cancelled unless they happen to have the substitutes in stock or coming round at an early date, which, under present conditions, is rarely the case. I am, therefore, satisfied that what the Minister said was his intention is not possible of achievement immediately.

If it were practicable, I would agree with the aim of the Minister. If, as I am satisfied is the case, the Importation of Fabrics Order has reduced and may further reduce during the next few months the total cotton fabrics imported into this country, then I contend that it is bad policy and should be rectified as soon as possible. It may be impossible to undo any harm that has been done, but further harm could be prevented by an immediate revocation of the Order. A new Order could be made at a later date, if and when the Minister is satisfied that it is necessary, and when he is satisfied that it will fit in with arrangements made in Great Britain, so that no fabrics will be lost to this country which would otherwise have been available.

Personally I do not believe that it will ever be necessary to restrict imports of cotton fabrics into this country. It is well known in the trade that the British authorities are now organising production in Great Britain to ensure that the cotton fabrics produced will be utility cloths at the lowest practicable prices. This British utility programme will not be in full swing, I am reliably informed, until September or October next at the earliest. Once it is in full force the principal cotton fabrics available for Éire will be such portion of these utility cloths as the British authorities will permit to be exported to Éire.

Turning to woollen fabrics, I am not as clear as to the details of the British restrictions on these fabrics as I am with regard to cotton and art silk fabrics of which I have a good deal of personal experience. I do know, however, that there is a serious scarcity of these fabrics and that their export from Great Britain is definitely restricted. I also know that the restriction operates, as in cotton, by the allocation of certain quantities to British exporters for export to Éire. I further know that the Importation of Fabrics Order has caused consternation amongst members of the men's tailoring trade here and amongst some garment manufacturers.

I have seen letters to members of the tailoring trade from their United Kingdom suppliers showing that allocations have been made for exports to Éire for a period to October 4th next. The association representing this trade have issued a statement that they cannot obtain any woollen fabrics from the United Kingdom suitable for men's tailoring at 6/- per square yard or under, and if the cloth now offered them for the period to October 4th is not purchased it will certainly be lost to Éire.

The statement issued by the Secretary of the Merchant Tailors' Association further states — I quote from the document issued by the association:—

"As most of the cloths produced in Ireland were made from English yarns of Australian wool, and as such yarns are now available only in small quantities, there is a great shortage of Irish material. If merchant tailors cannot renew their stocks from either English or Irish sources, they can only keep their staffs, which are nearly all married men, employed as long as actual stocks last, which in many cases will be for a very short time only. This Order should be suspended immediately, as time is a most important consideration. Materials are short in England, and the quantities held by the wholesale firms there are being reduced every day. If the materials are not allowed in at once, nothing will be available in a short time to Irish firms. My association made representations to the Minister for Supplies on the 1st May, and by 'phone twice since then, stressing that time was a most important consideration. Notwithstanding this, no intimation was received as to whether the goods available will be allowed into this country if ordered, until the notice appeared in Wednesday morning's Press stating that materials would be allowed in under licence, irrespective of price, until the 30th June. This, in the opinion of my association, is very little use owing to delays in transit and the fact that the British export licences are operative until the 4th October."

The Minister was asked a specific question with reference to the tailoring trade on 30th April. He admitted that he had refused licences for the import of woollen cloth over 6/- per square yard. He said he could not state where woollen materials suitable for making suits for men could be obtained at the price of 6/- per square yard, but that importers had asked for licences for the importation of fabrics of this description in considerable quantities. It is difficult to reconcile this statement of the Minister with the statement issued by the Merchant Tailors' Association. I wonder how the Minister knows that the woollen cloths at or under 6/- per square yard for which licences were applied were cloths suitable for men's suits.

There is no separate category in circular I.F.5 for woollen fabrics for men's wear, and I wonder if the Minister has confused woollen cloths for ladies' or children's wear (of which there is a quantity available under 6/- per square yard) with cloths for men's wear. If not I cannot explain the discrepancy. It seems, however, clear to me that woollen fabrics for men's wear should be excluded from the Order at least until October 4th, to enable the present allocations to be completed.

The Minister has also refused licences for woollen cloths over 11½ ounces per square yard in weight. This may keep out the heavier cloths which would be desirable for winter wear. I wonder why the Minister has done this. He has spent which time emphasising the shortage of fuel, and if we believe him, as I certainly do, we seem to be in for a hard time next winter. Why then exclude heavier cloths if they can be obtained?

The latest action of the Minister by way of mending his hand was the announcement on May 13th to which I have already referred stating that he will give licences without restriction of price or type if the goods arrive before June 30th. I have been in touch with most of the classes of manufacturers and traders affected by the Order and I have not met one which regards this new announcement as satisfactory. If the Minister had said he would give licences for goods despatched from the senders before a fixed date I could have understood it, though I would not have approved of June 30th. You cannot deal with a British manufacturer or supplier on the basis of the dates goods may reach Éire. They have no control over transit at any time, and they will not risk sending goods if there is any possible risk of their being returned to them. Why should they, especially under present circumstances, when they can dispose of all their production with the greatest of ease?

But apart altogether from the question of time taken in transit, the fact remains that British manufacturers will not accept any orders on the understanding that they will be cancelled if not ready on a given date. They say, and I am sure they are right, that while the war lasts it is impossible to estimate the time it may take to make and finish goods. They may at any time have to act on orders of their own Government and concentrate on Government supplies, leaving over export orders until these are completed.

Since the announcement appeared in the Press on May 13th a number of Irish importers have received communications from firms in Great Britain with whom they had placed orders. They have been informed by these United Kingdom exporters that they are not willing to forward the goods on order unless and until they receive a guarantee that the goods will be admitted into Éire at whatever date the goods arrive. In some cases the reason for this action by British exporters is due to the fear of delays in transit but in other cases they say the goods are in making and they are not in a position to know when they will be ready. This has created a serious situation and unless remedied at once may result in the loss of fabrics for this country.

It seems to me that the Minister has failed to realise the undoubted fact that the greatest asset we have in the matter of supplies from Great Britain lies not in anything his Department can do but in personal contacts between our buyers and British exporters. The British public has its mind on the war and I doubt if it cares whether or not we get fabrics. It is due to the friendliness and goodwill between manufacturers and traders on both sides that supplies have been as good as they have been up to the present. Government interference cuts across this personal contact and goodwill and should be avoided except where absolutely unavoidable. It should be the function of the Department of Supplies to help Irish firms to get supplies not to get them for them except when the Irish traders have failed through the action of the British Government.

I wonder does the Minister realise the extent of the resentment felt by British suppliers against the cancellation of orders caused by his action. Suppliers in Great Britain are working under extraordinary difficulties including shortage of raw material and reduced staffs. The large majority of them are anxious to do their best for their old customers in this country and elsewhere. It never occurred to them that anybody during the war would refuse to accept delivery of the very reduced quantities for which they had been able to accept orders in the case of cotton and woollen goods and they naturally resent the trouble of having to re-sell the goods elsewhere even though they can easily do so. Now as a result of the Minister's action they are expressing doubt as to whether they should accept orders for Éire at all as the Irish Government may suddenly refuse to allow such orders to be executed when the goods are ready.

A very considerable quantity of the supplies obtained by this country has been the result of visits of Irish buyers to Great Britain. Most leading houses send over their buyers from time to time. In the announcement made by the Minister in the Press of May 13th it is stated that buyers should not place orders for fabrics outside the class or price set out in circular No. I.F.5 without prior consultation with the Department of Supplies. This shows a complete failure to understand the position of Irish buyers. I was not present in the Dáil but I am informed that in reply to a question the Minister said that if there was a consultation he would be able to give an answer as to whether goods should be bought or not, within a week.

A buyer going to England does not know what he may be offered until he gets there. How can he consult the Department? If he telephoned, would he get an immediate answer? I do not believe he would. If he waits until he returns to Ireland, the goods he was offered may be gone. This kind of announcement only aggravates a difficult position and if adhered to means the loss of supplies still available.

On what basis has the Minister fixed June 30th? If there is to be a date at all, it should be September 30th at the earliest. And why insist on licences up to 30th June or whatever date is finally fixed?

If all fabrics without regard to type or price will be admitted until June 30th, why require licences at all until after that date? Licences use up paper, of which there is a scarcity —they take up the time of the overworked officials of the Minister's Department. The sum of 2/6 that the Minister charges for these is not likely to bring in revenue equal to the expenditure.

Far more important, licences cause delay and expense to importers, which add to the cost of the goods. They increase the work of customs officials and of the staff in the shipping offices. In my opinion, licences should, during the emergency, only be required where it is absolutely necessary. Whatever may be said for or against this Order, it is surely unnecessary to insist on licences until June 30th, as fabrics will be admitted until then without regard to class or price. As Minister for Industry and Commerce he has removed a number of quotas because they served no useful purpose at present. By this action he reduced substantially the issue of import licences. Why not adopt a similar policy as Minister for Supplies?

Most, if not all, of the confusion and harm done by this Order could have been avoided if the Minister had consulted experienced representatives of importers before he made this Order. I am not aware that he did so in any case. There is a very general complaint against his Department that it consults after it has taken action, instead of before. This complaint is fully justified in the case of the Importation of Fabrics Order.

The Minister seems to assume that manufacturers and importers are actuated by purely selfish motives, and have no regard for the welfare of the country as a whole. If this is his view, he is quite wrong. I am quite certain that importers generally would willingly co-operate with the Minister in an endeavour to secure that as far as practicable fabrics imported should be in the future those which the people most require. But they cannot co-operate if they are not consulted.

The situation is very serious. It is the business of manufacturers and the drapery and allied trades to do their best to supply the people with essential clothing. Irish manufacturers of various fabrics — I am chairman of one of the larger groups — are doing their best, but in most cases they cannot obtain raw materials to enable them to supply the normal demand, much less make up for what may be short from Great Britain. They have, therefore, no desire to prevent imports of fabrics, especially as they know very well that the quantities which they can manufacture during the emergency added to the quantities which can be imported will not provide a total equal to the probable requirements of the country.

Even in normal times, manufacturers of garments had to depend on imports of fabrics for a considerable portion of their necessary supplies. Manufacturers of shirts, of men's and boys' readymades and of ladies' overalls, dresses and underwear, are all affected by the Order and are equally concerned with the distributing trade as to the possible loss of supplies. This may be much more serious if the Minister does not change his policy.

The drapery trade, of which I have a fair knowledge, sees its supplies both at home and from England gradually but steadily dwindling and it is fearful of serious unemployment in the coming winter and next year if the war continues. The Federation of Irish Manufacturers has sent a resolution to the Minister criticising the Order and demanding its suspension. The Drapers' Chamber of Trade has, I believe, taken similar action.

It does not take much imagination to understand the resentment of manufacturers and distributors alike at any action by the Minister which may reduce the total supplies available. The Minister must appreciate the seriousness of the position with regard to clothing. What should he do? In my considered opinion — formed after wide consultation with experienced persons —he should revoke this Order and immediately form a consultative committee of experienced representatives of manufacturers and distributors. He should ask this committee to advise him how to achieve the aims he has in view. An official of his Department, with representatives of this committee, should then proceed to Great Britain to endeavour to make its plans fit in with British production arrangements. I believe this could be done.

The Minister would then be in a position to make a new Order to operate from a future date prohibiting the imports of fabrics outside certain types and prices, except under licence, without danger of the loss of any available supplies. There should be no licences required for fabrics imported within the types and prices set out in the Order. The Minister should announce that he will give licences for all fabrics actually ordered before a certain date which may arrive after the new Order is made and which do not come within the classes or prices set out but that, thereafter, he will issue no licences. This would enable buyers on this side and sellers in Great Britain to know exactly where they stand and there need not be any cancellations of orders actually placed. I respectfully suggest to the Minister that this would be a wise and practicable policy and I urge him seriously to consider it.

I would like to make it very clear that while I have criticised the policy of the Minister with regard to this Order, I am not criticising any officials in his Department. I have always received the utmost courtesy from officials in the Department of Supplies whom I have approached with regard to the working of this Order or other matters. They have always listened attentively to representations I had to make and promised to convey my more important suggestions to the Minister. One sometimes hears rather bitter criticism of the Department, and it is for this reason that I wish to take this opportunity of paying a personal tribute to the patience and courtesy of the officials I have had to deal with. I do not envy them the job of carrying out a policy as unwise as I believe this Order to be at the present time.

There is one other matter to which I would like to call attention, though it is only indirectly related to this Order. I would like to suggest that a small committee should be set up of officials of the Departments of Supplies, Finance, and Industry and Commerce for the purpose of recommending what steps should be taken to reduce customs delays at the North Wall for the period of the emergency. This city has already been bombed — we all hope that it will not occur again, but we must admit that it is within the realms of possibility — and if the bombs which dropped on the North Strand area had dropped on the shipping companies' stores at the North Wall, a very great quantity of essential supplies might have been destroyed.

It seems to me desirable that an effort should be made to see that the supplies in shipping stores at any one time be as small as possible. If goods could be cleared more promptly, it would help this considerably. If a committee such as I suggest were set up, importers or their representatives could inform the committee of the causes of delay, and it could then be considered how far certain formalities, however necessary in peace-time, might be dispensed with for the duration of the emergency. For instance, it might be possible to modify the requirements as to certificates of origin, which are often lost in transit. At a time when only a small portion of our goods comes from the United States, and the remainder from Great Britain, it seems to me that it would be a simple matter to accept a statement from the acceptor of the goods as to their British origin, and let the goods go through at once rather than rendering it necessary to write to Britain — as many of us have frequently to do — for a copy of the certificate. My experience is that, at least, one out of seven or eight certificates goes astray. I am not suggesting that the customs are responsible. The fault may be with the shipping companies, or it may be due to pressure of work on the part of exporters on the other side. What is highly desirable to insist on in peace-time may not be so desirable in wartime. Something might be done, if the Minister insists on maintaining this Order, to arrange for licences being kept at the customs. At the moment, they have to be brought from the British and Irish to the London, Midland and Scottish, and then taken up and attached to the next invoice one wants to clear. The result is that clearances of goods subject to these licences take two or three times as long as they might otherwise take.

I do not put this proposal forward solely from the point of view of the convenience of the trade; I put it forward in the public interest. In my opinion, the bulk of supplies at the North Wall is dangerously large on any given night, and it is worth while sacrificing some formalities to get the amount of goods reduced. I hope the Minister will consider this suggestion. I also hope that the House will pass this motion, and that the Minister will agree to revoke the Order.

I second the motion.

I am glad that Senator Douglas put down this motion, because it is obvious that an attempt is being made to organise a ramp on the basis of the Order, and that that attempt can best be defeated by a clear statement as to the purpose of the Order, the method of its operation, and the reasons for making it.

This Order provides for the restriction of imports, except under licence, of fabrics made of cotton, linen, wool, silk or artificial silk. It was made because it was obvious that our home production of all fabrics of the kind to which the Order refers at the present rate of supply of raw materials in this year is unlikely to amount to more than 35 per cent. of the 1940 production, and because our imports of the fabrics of the same classes for a period of 12 months beginning about March last are not expected to amount to more than 25 per cent. of our imports of such fabrics in 1940. In these circumstances it is obviously good national policy and a matter of first importance to ensure that the best use is made of the quotas available to us from Great Britain by limiting imports under these quotas to the fabrics of which this country is most in need, and by that I mean the fabrics of which the consumers are most in need, not the fabrics in which traders might find it most profitable to deal.

I think that Senator Douglas said that the Order was based upon a misunderstanding of the facts. The Senator has misunderstood most of the facts himself. It may be no harm to give a more authentic history of the circumstances which led to the making of the Order and the developments which have occurred since. The first fabrics upon the export from Britain of which restrictions were placed were cotton piece goods. In August of last year, we investigated the possibilities of arranging that in the export licensing arrangements on the British side, goods of an essential type should be preferred to the luxury class. The British Board of Trade was sympathetic to the idea of trying to confine the export to us of piece goods to essential goods. A list of the goods which we deemed to be essential was requested by them and consultations were held with the trade. I do not know where Senator Douglas got the idea that the Department of Supplies does not consult with the parties interested in matters of this kind. The assertion was completely unfounded.

The Minister, I presume, means the trade here.

The trade here.

Can the Minister say what association was consulted? I do not want to press him if he cannot answer at once.

Discussions were held with the representatives of the trade who were best able to give the advice which the Department required. The whole question was discussed with the secretary of the British Cotton Board in December, 1941, and he suggested that we should regulate the imports of cotton piece goods so as to secure that our desire would be realised that the most essential types of goods would be imported. It was indicated to him that steps to have that done had already been taken and that a licensing system would be introduced at an early date. The Secretary of the British Cotton Board thought it was possible to arrange that our import licensing system should be wedded to the British export licensing system. He agreed that if imports were left unrestricted mainly expensive and non-essential fabrics would be supplied.

In the meantime restrictions were imposed on the export from Great Britain to this country of woven fabrics made of wool or rather the intention to impose such a restriction was announced. It was also indicated that restriction would be imposed on the export of rayon goods to this country. I then decided to make the Emergency Powers Order, to which this motion relates, controlling the importation of fabrics. I felt that the position in respect of supplies from Great Britain might deteriorate still further. It was, therefore, important that we should take steps to import the maximum quantities of essential goods while the opportunity to do so was available to us. A list was drawn up of the fabrics which were regarded as essential for clothing. To that list may be added certain other fabrics such as industrial cloths which were not of interest to the general trade, but for the importation of reasonable quantities of which import licences would be granted. The danger was that the shortage of supplies in fabrics would be exploited both by the British exporters and the Irish importers to the detriment of the Irish consumers. The shortage is such that there is temptation to importers to use the limited import facilities available to get in the most expensive classes of goods in order to keep up their turnover and to the British exporters whose profits on the home market have been seriously curtailed by the restrictions to make up by their export trade.

We were advised by the Secretary of the Cotton Board in December last that he had already noticed a tendency to export the higher qualities of piece goods in preference to cheaper goods. Importers here have been advised by British merchants that they were not prepared to use up their quotas for the importation here of fabrics which yielded only small profits. With the object of counteracting that tendency, it was decided that the grant of import licences would be conditioned not merely by considerations of the type of fabric but by considerations of the price. When the Order was made, it was appreciated that difficulties would arise if importers had always to consult the Department about fabrics for which a licence was likely to be granted. Senator Douglas has laboured that point. I think that the course of action followed by the Department conforms closely to the course of action the Senator now recommends. It was clear that if importers addressed themselves to the task of seeking supplies of the fabric which we considered most essential there would be a big volume of importations in relation to which the granting of licences would be almost automatic.

With a view to making things easy for the importers and for the Department, it was decided to issue a circular setting out the types of fabric for which, it could be assumed, licences would be issued as a matter of course, if the landed prices were within the maximum prices shown.

It was clearly stated in the circular, an extract from which Senator Douglas read here, that it was not to be inferred that licences would be issued only for those fabrics and that the object of the list was to facilitate importers in the negotiation of transactions in regard to the grant of import licences for which they might be in no doubt whatever. After that circular was issued, representations were received from practically all the importing interests, to the effect that the prices published were too low and that it would be impossible to procure any considerable quantity of supplies within those price limits. It was explained to those importers that there was no question of licences being limited to goods imported within those price limits, and that applications for licences to import fabrics outside those limits would also be considered. It was represented, however, that unless the price limits were fixed at higher levels, importers would have to refer to the Department with such frequency that there was a serious danger of their losing supplies through not being able to come to a speedy decision when offers were made to them from Great Britain. Since the purpose of the publication of the circular was to avoid this contingency, it was decided to increase the price limits in the majority of cases until experience had been gained of the actual prices at which goods were being landed in this country. Accordingly, a revised circular was issued, as stated by Senator Douglas.

Representations have also been made that fabrics outside the descriptions set forth in the circular should be admitted without question, but that suggestion could not be accepted except in the case of calico. The prices set out in the revised circular were in many cases lower than those pressed for, but were so substantially in excess of the figures previously worked out that importers should have no insuperable difficulty in finding fabrics within those price limits. The increases in prices removed a large proportion of the complaints made against the Order, but representations continued to be received from importers of classes of fabrics unsuitable for clothing, such as furnishing fabrics, and also from importers of high-priced fabrics suitable for clothing but not conforming to the Department's standards of essentiality, such as heavy tweeds and overcoating, the essentiality of which was not disputed, but supplies of which should, it is felt, be drawn from home production and not from importation at the expense of fabrics which are of a class not produced at home at all, or the home production of which was clearly inadequate for our essential needs. It was indicated in all such cases that licences could not be issued except to the extent to which goods might actually arrive in this country in or about the 30th April. It was represented also that there was a danger that there might be some complication in the arrangements on the British side for the grant of export facilities, which might result in a loss of part of our quotas if we neglected to import those fabrics which we regarded as not being most important from our point of view. These representations were taken up with the British Board of Trade, and it was decided that, pending an indication from the British authorities that there was such a danger which could not be overcome on the British side, we should maintain our attitude, so as to make the importers give at least first preference to the goods which we regarded as most important.

If information which we might receive from the British authorities tended to suggest that parts of our quotas were earmarked for expensive or non-essential fabrics and that these parts could not be replaced by types of fabrics we wished to import, the importers might then be permitted to take up the expensive or non-essential fabrics. The risk that it might be too late then to get those fabrics was deemed to be negligible, in comparison with the risk that if imports generally were left unrestricted, importers would make no effort to secure the supplies of the moderately-priced serviceable fabrics suitable for clothing which we wanted. Applications continued to be considered for fabrics outside the approved standard as to quality and price, and licences were granted in cases where the Department was satisfied that it was in the national interest to grant them. For example, overcoating material, which was outside the classifications in the list, but importable at a moderate price, was licensed. Licences were refused in cases where we were not satisfied that importation was desirable in the short state of supplies from Great Britain.

It may be relevant to state that, in the period of three weeks from the date on which the Order commenced— the first licence was issued about April 20th — 730 licences were issued for the importation of 3,430,000 square yards of material; 35 licences were refused for the importation of 30,000 square yards of material. Senator Douglas said it was impossible to estimate what quantity of fabrics was lost during the month by reason of the actions of the Department. I do not know why Senator Douglas found it so difficult. I will give the estimate — not one yard.

Would the Minister state the number of orders which were cancelled during that period?

Of all the traders in this country who desired to import fabrics during that period, 35 were refused licences for the importation of 30,000 square yards of cloth, against a permitted import under licences issued for 3,430,000 square yards. This represented only 4.8 of the number of licences requested and the area of cloth involved in the refusals represented less than 1 per cent. of the area of cloth for which licences were sought. There are two inferences to be drawn from the very high percentage of the approved applications. Either the price limits published were reasonably sufficient to cover almost the entire import trade, or the standards of type and price laid down influenced importers to make special efforts to secure supplies of materials within these specifications. The proper inference, probably, is that both of these two conditions obtained, and that there is a supply of fabrics available from Great Britain of the kinds and at the price of which we are prepared to approve and that if importers look for these goods they can get them. It does not necessarily follow that all the goods covered by the licences issued will be received, but the importers have, at least, been able to place orders for them.

As Senator Douglas said, representations were made by the Drapers' Chamber of Trade and by the Federation of Irish Manufacturers to the effect that considerable quantities of fabrics which had been on order for some time were now coming around in English warehouses and that it was only reasonable that they should be allowed to import these fabrics since it would take some time for British merchants who had not got the materials of which we approve in stock to have such materials specially made up for this market. Although no evidence was forthcoming of the extent to which orders had already been placed for goods which were likely to materialise in the near future, it was felt that it would be only reasonable to extend the period of grace, already granted up to 30th April, to a later date, and the 30th June had been contemplated so as to enable goods which had been on order prior to the making of the Order, or for which orders had been placed whilst representations to the Department were sub judice, to be imported. The parties concerned were advised on the 5th of this month that such a concession would probably be granted.

While the precise form which the concession would take was under consideration, the Department had an opportunity of consulting the Secretary of the British Cotton Board, who was in Dublin. He confirmed that in practice the British merchants supplied Irish customers out of stock, and availed of the Irish orders to secure facilities to replace in stock the quantities of material supplied against the orders. He noted that we were prepared to entertain applications for fabrics at prices or of types outside the published list, and he suggested that we should not be too rigid in the examination of applications for a couple of months in order that Irish importers might have the run of British warehouses. He quite agreed with the object of the Order, and saw no reason why British merchants, advised of the type of goods for which there was an import preference here, should not use their market allocations to have these goods made up for export to this country.

In the light of the information obtained from the Secretary of the Cotton Board in regard to cotton piece goods, which is assumed to be true also of the other fabrics, it was decided to extend the concession already contemplated so as to permit importation up to 30th June, irrespective of the date on which the goods had been ordered. Meanwhile, an announcement to that effect was made on the 13th of this month.

Senator Douglas made special reference to the question of rayon piece goods. He stated that he had been informed by a reliable authority in the United Kingdom that no restrictions on the exportation of rayon piece goods to this country were in operation, and that we had been misinformed in that respect. Senator Douglas's contacts with reliable authorities in the United Kingdom are, I believe, not always as helpful as he intends them to be. The facts in regard to rayon piece goods are that in September last we were advised officially by the United Kingdom Trade Commissioner in Dublin that he had been asked by the Department of Overseas Trade in London to state that it had been found necessary as a short-time measure to check rayon production, and that this restriction would have the result of restricting exports of piece goods to the 1940 level. It was indicated that the check would not be operative until November or December, and probably would not affect exports to any marked extent before the new year. It was added that it was hoped to establish a longer period on rayon production for exports later.

Representations were made to the United Kingdom Trade Commissioner with the object of allowing the export to this country of piece goods, orders for which were placed and accepted before the date of the application of the check on production. It was understood from the Secretary of the Cotton Board, which deals also with rayon exports, that the threatened restriction on exports of rayon had not yet been enforced but that the matter is under active examination at the moment. The suggestion that because plentiful supplies of rayon piece goods are at present obtainable, there should be no restriction on the prices at which these goods are to be imported is unacceptable. If restrictions are imposed by the British authorities on the exports of rayon, having regard to the fact that we have been officially notified of their intention to impose restrictions, even though they have not come into operation, there is no reason to assume that the quantities of such goods now being imported will not be counted against any quota subsequently allotted to this country. Furthermore, because of the shortage of cotton piece goods and woollen fabrics, rayon is being used more and more in substitution for these fabrics and it would be obviously undesirable that the plenitude of supplies should be exploited in favour of expensive fabrics such as would be suitable for dance frocks, furnishing, etc., instead of in favour of the more serviceable and utilitarian piece goods which are required as substitutes for cotton and woollen goods. The fact that exports have not yet been rigorously controlled (though that control is understood to be imminent) should enable our importers to have free choice of rayon fabrics which they allege the restriction of exports prevents them from having in the case of cotton and woollen fabrics. Those arguing against the Department are trying to argue two ways at once. They tell us that restriction of supplies of cotton and woollen goods leaves no scope for the exercise of selection which the Department requires them to make, whilst in the same breath they argue that the freedom of supplies in the case of rayon goods makes it unwise to be selective there either. In fact, the price limits up to which we have been prepared to grant import licences for rayon goods have been more generously framed than for the cotton and woollen groups, and our limited experience in the operation of the Order has shown us that, so far as the types of rayon goods in which we are chiefly interested are concerned, the price limits have been such as to afford no reasonable grounds for complaint.

The attitude which will be adopted towards applications for licences for the importation of fabrics, not conforming to the types and price limits announced, which may arrive after the 30th June is under consideration. Much will depend upon the reply which it is hoped to receive this month from the Board of Trade to the inquiry addressed to it. If it is clear that the fabrics imported outside these price limits of a class we do not require, can, if sent back to the United Kingdom, be recredited against recorded exports of this country then we will certainly require them to be sent back. If, on the other hand, it is clear that retention of these fabrics will not mean a diminution in total supplies, then a different decision will have to be made. The announcement that import licences will be granted without reference to price or type of fabrics arriving up to 30th June appears to have given rise to an impression that the Order has been suspended up to that date. I want to make it clear that that is not the case. It is intended to retain the licensing provisions of the Order. The concession which has been announced will, broadly speaking, relate only to current orders or orders which had been placed for some time. The retention of the import licensing requirements, even in those cases where importation will be permitted as a matter of course, is necessary in order that we may be in a position to know, by inspection of the exhausted licences, what quantities of goods have been imported and at what prices.

Without that information we would be at a disadvantage in considering representations in regard to the availability of supplies. The information will also enable us to see to what extent, if any, importers may take advantage of the concessions by importing goods at extravagant prices.

This motion by Senator Douglas calls for the revocation of the Order. I want the House to be quite clear as to what the Order does. It provides the Minister for Supplies with the power to regulate the imports of fabrics. The motion for the revocation of the Order is, therefore, a motion for the withdrawal from the Minister for Supplies of that power to regulate imports. In other words, it is a motion that imports of fabrics should, for the present at least, be left free and uncontrolled. The proposition that it should be left to the discretion of importers to determine what cloths should be imported, and the implication that the Government has no responsibility for ensuring that the most important needs of the country are met, are untenable. Textile fabrics serve many purposes, but the most important purpose, which it is the duty of the Government in the present emergency to see that they serve, is the clothing of the people. There is danger that the shortage in the total quantity of the fabrics obtainable from Great Britain might be exploited by exporters in Great Britain and by importers in this country with the object of keeping up their own profits. The national interest, therefore, requires that the Government should take steps not merely to see that clothing fabrics are imported to the fullest extent possible but that the consumer is protected against exploitation.

It is primarily those members of the consuming public who, because of restricted means, can purchase their clothing only as and when they require it, who must be protected against exploitation, and it is the duty of the Government to take steps to see that supplies of clothing are available for them at reasonable prices. Unlike the better-off sections of the community, they have not been able to stock up their wardrobes and, not having had the means to buy clothing when cloth was plentiful, they must not now be left in the position of having to take whatever is offered to them, irrespective of the prices asked, without at least having the assurance that the Government has done what it could to try to secure cheaper and more suitable cloth for them. The suggestion that the Order which gives the Minister power to take steps to this end should be revoked is a suggestion that those sections of the community should be left to the mercy of the traders concerned.

We are aware that the British authorities look with disfavour on the exploitation of the shortage by British exporters, and we are advised that they would be anxious to take whatever steps are practicable to put an end to such exploitation. It is true that any control exercised at this side could be only partially effective unless the co-operation of the British authorities is secured. Every effort has been made to secure that co-operation to the full extent which the situation requires. In the meantime, the Government is determined to make importers think of the requirements of the majority of the community, rather than of those who can afford to pay high prices for clothes. The fact that British houses dealing in multiple lines of fabrics cater for more markets than Ireland should be remembered. If Irish traders are prepared to take whatever is offered to them, regardless of price, naturally the British merchant will make sure of his profits by giving them his dearest goods, but, if they show that they want cheap, serviceable fabrics, and insist on them, they can probably induce the British merchant to supply them, possibly at the expense of some other market where Government-dictated selectiveness in favour of low-priced goods is not enforced.

Another point to be borne in mind is that freshly manufactured goods are constantly coming round in British warerooms, and that, if our ideas on type and price are made plain to the British merchants by forward ordering in accordance with the descriptions and price limits already announced, these merchants can arrange — as some British merchants who have been in touch with the Department have indicated that they will arrange — to have goods made up specially for this market in conformity with our standards. But if importers do not do this, and merely carry on as they did prior to the introduction of the Order, they will get no higher ratio of cheap goods than they have been getting. On the contrary, the ratio will grow steadily in favour of the dearer goods.

I hope Senators will notice the fact that it is the price limits rather than the selection of fabrics which have provoked the first and most intense opposition to this Order. I think that fact is too significant to be passed over without comment. The reason the price limits have been challenged so hotly is not because fabrics cannot be bought at those prices, but because they put a brake on the growing tendency of importers to bid against each other in the British market on the principle that they must buy something whatever the price. This idea, which one frequently hears voiced nowadays, that price is no longer a consideration, must be checked. Uncontrolled competition for the dwindling supplies available in the British market creates a potential black market for those goods before ever they reach this country. Importers could, prior to the introduction of this Order pay anything they liked for fabrics, secure in the knowledge that, because of the shortage and because people must have clothing, the consumer would have to pay them whatever they liked to charge for the goods. There are very few consumers who will endorse the traders' plea that there is still enough competition between and within the trades concerned to keep prices down. I think there has been altogether too much theorising about the possible losses of supplies.

There is no solid evidence that cheap cloths cannot be got in preference to dear cloths. On the contrary we have found importers who set their minds to it able to get as much cheap cloth as they wanted. There is no clear evidence that a choice cannot be exercised within the British export quotas for markets including this country. On the contrary, the suggestion made to us from the British side that the shortage was being exploited shows that there is scope for selectiveness, and that that selectiveness is being exercised against the interests of the poorer people in order that traders' profits will be maintained and enhanced. The worst that can befall as a result of our traders being compelled to look for the cheaper fabrics is that, where they fail to find them and go back to get the dearer fabrics which they passed over in their search, those fabrics will have gone to another market, as was suggested by Senator Douglas, but even if that loss were to be incurred it would be, in my opinion, a small price to pay for the knowledge that the British market had been combed for utilitarian cloths, and that all the cloth of that kind which could be got had been got.

The importers of expensive fabrics have had their day for the past couple of years, particularly since the import quotas were suspended. If there is any loss of these types of cloth, the country can bear it, because those who could afford them or are trading in them are very well stocked already. The consumer who has his wardrobe full and still wants more can get it, and when all the expensive imported materials are gone there are Irish homespuns and other expensive home-produced tweeds to fall back on.

Leas-Chathaoirleach

I must interrupt the Minister for a moment. There was a rule made by the Committee on Procedure that we should take the adjournment at 8.30 p.m. when there was a matter to be raised. I do not know if the House wishes to go on with the adjournment now.

Perhaps the House would let the Minister, at any rate, finish.

I will not be very long.

I take it that it is proposed to end this debate when the Minister has finished and to resume it at another time?

Yes. I have to be in the Dáil at 9 o'clock so that will suit me.

If the Minister is allowed to continue, I take it that nothing further than that will be done in regard to my reply. The debate, I presume, will then be adjourned.

Leas-Chathaoirleach

Yes, the debate on the motion will stand adjourned. That is agreed, I assume.

I want to say that I am just as anxious as Senator Douglas to ensure that there will be no avoidable loss of supplies and if it is clearly ascertained from the British authorities that there is a likelihood of appreciable loss of supplies because luxury materials are specially earmarked and must continue to be earmarked for this market, these luxury goods will be allowed in because obviously they will not be coming in at the expense of cheaper fabrics. But until then the Government will not be moved from its determination to secure the maximum quantities of cheap fabrics. The agitation organised in that connection is, I think, based on selfish sectional interests and it has been supported by theoretical arguments about the dangers of attempting to be selective in our purchase of fabrics from the British market. Even if it were necessary to lose 10 per cent. of supplies in order to make sure that the other 90 per cent. would come within the means of the great bulk of the people, the Government would face up to that loss. The Order will certainly not be revoked when it is not even clear yet that that 10 per cent. loss need necessarily be suffered.

Senator Douglas stated that in his opinion it will never be necessary to restrict the imports of cotton fabrics. I was going to argue that this Order was necessary and should be retained even if we decided to abandon the price standards which we have set. I already informed the House that the total quantity of cotton fabrics which we are likely to get in the course of this year is fixed and limited. We have decided that we shall endeavour to secure that the total quantity of such fabrics imported will come within a certain price range, and even if we are to respond to the appeal of traders voiced by Senator Douglas to abandon that limitation, it would be necessary to maintain the Order for another purpose.

For instance, cotton shoe linings are classed as cotton piece goods in the British export lists. The boot and shoe manufacturers in this country, with a natural anxiety to lay in stocks while they are available, have applied for licences for considerable quantities and have requested the Department to make representations with a view to the granting of additional allocations to suppliers of boot and shoe linings in Great Britain. I have informed the Boot and Shoe Federation that I am not prepared to make any such representations, and, further, that imports of cotton shoe linings cannot be permitted at a rate greater than 20 per cent. of imports in 1940 since any excess over that rate would be possible only at the expense of other clothing fabrics. That limitation on cotton shoe lining imports can only be achieved by maintaining the import control of the type contemplated by the Order. We have made special provisions for the importation of bandaging and other surgical materials. A special allocation of these materials over and above the cotton piece goods allocation has been fixed by the British authorities, provided the goods are obtained through certain channels. It is necessary by maintaining import control to secure that supplies of the same type of material are not imported through other channels at the expense of the cotton piece goods allocation. It is necessary also in respect of this particular class of materials to ensure that such materials as are imported are not diverted for other use than that for which they were intended and special steps are being taken towards that end in the administration of the Order.

I may sum up, therefore, the case for the Order in a very few words. The total quantity of fabrics of the kind to which the Order refers are either restricted at present, or we have been officially informed of the intention to restrict them, and perhaps to restrict them retrospectively. The Government has decided that in such a case traders should be required to import only the cheaper classes of such fabrics. We are satisfied that it is possible for such traders to obtain these cheap fabrics and that the restrictions which have been placed upon their activities in importing cloth in respect of class and price at which such cloths should not be imported need not involve any loss of supplies. It should be obvious that there would be no loss of supplies if the British authorities are willing to recredit against our allocation any cloths returned as unsuitable by us. If they are not prepared to do that, then we will have to reconsider our attitude, but it will still be necessary to maintain the arrangement which will force our importers here to give first preference to the cheaper cloths and only to import luxury cloths where it has been made clear to the Department of Supplies that cheap cloths cannot be obtained.

The Order was primarily made for the purpose of giving effect to that policy, but even if we had decided that that policy should be abandoned and that importers are to be allowed to exercise their own discretion in regard to the type and price of cloth to be imported, we would still have to have this Order in order to ensure that some control would be exercisable over the class of fabrics obtained, and to ensure that there would be some uniformity secured in the supply of raw materials to industries, but particularly to secure that abuses do not arise in respect of the misuse of fabrics specially allocated to this country for particular purposes by their diversion to other purposes. In the circumstances I have outlined, I think the case for the motion falls to the ground.

I assume it will not be necessary for me to move the adjournment, as there may be some other Senator who will wish to speak on this the next day. Although I cannot reply to the Minister now, I would not like it to be thought that the allegations made against the trade are in any way accepted, because I am satisfied that they are false and that they can be replied to when we meet again.

Debate adjourned.
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