EXPLANATION SOUGHT

Otago Daily Times, Issue 26996, 3 February 1949, Page 5

EXPLANATION SOUGHT

EXCLUSION FROM STEEL BILL PROVISIONS FORD COMPANY IN BRITAIN NZPA—Reuter —Copyright Rec. 8 p.m. LONDON. Feb. 2. Conservative members sought an explanation from the Minister* of Supply, Mr George Strauss, why the Ford Motor Company, which makes its own steel for British Ford cars, should be excluded from the provisions of the Steel Nationalisation Bill. They accused the Government of being afraid of antagonising the United States. Mr Ivor Thomas (Conservative. Keighley, speaking in the committee discussion of the Bill, asked: “Is it not from the fear that nationalisation of this company would have repercussions in the United States and endanger the continuance of the generous help we are receiving from that country that the Minister has decided to exclude this company? ” He was supported by Mr Oliver Lyttelton (Conservative, Aldershot), who said: “There is no rhyme nor reason in the exclusion of the Ford Company and the inclusion of other companies except that the diplomatic difficulty of including the Ford Company frightened the Government out of its skin.” „ , _ Mr Lyttelton said that Mr Paul Hoffman, the chief' administrator of Marshall Aid, was president of the Studebaker Motor Company. He was the man to whom the Government would have to go for an extension of Marshall Aid.* , ~ _ Mr Strauss replied that the Government felt that as the Ford Company’s iron production was primarily for the purpose of making vehicles, and was remotely removed from the manufacture of iron and steel, special treatment was justified. “It would be unwise and wrong to use the Bill for

the nationalisation of steel as a method of nationalising an important part of the motor car industry. Some day the Government may want to nationalise the car industry. If so, the right way to do it would be by nationalising the whole industry in one clean measure.” , . . Mr Strauss denied that the decision had anything to do with the Ford Company’s American interests.