HC Deb 05 June 1956 vol 553 cc867-8
31. Mr. Russell

asked the President of the Board of Trade if he is aware that in the last few weeks the exchange rate of the Brazilian cruzeiro has been manipulated so as to nullify the increased tariff preference granted to British Colonial Territories on bananas; and if he will make a statement.

Mr. Low

There have been changes recently in the structure of Brazilian exchange rates, but bananas are only one of the many commodities affected. It is too early to say what the effect might be on exports of bananas from British Colonial Territories. I am, however, watching the position, and we shall approach the Brazilian Government if it appears that the increased preference is being frustrated.

Mr. Russell

If a change has been made in the exchange rate affecting bananas, would not my right hon. Friend agree that it is a violation in spirit, if not in letter, of the agreement recently negotiated, under which the preference was obtained in return for a concession given to Brazil on Brazil nuts?

Mr. Low

The question is whether the intent of the agreement recently reached will or will not be frustrated, and that we must wait and see.

Mr. K. Thompson

Is not this an example of the need for a discussion of the overall position of our trade with Brazil at present, and will not my right hon. Friend consider the earlier representations which I have made to him on this point?

Mr. Low

That is another question. We have recently had discussions with Brazil on payments, and, as my hon. Friend knows, we have reached a satisfactory agreement with them on a more multilateral system of trade.

Mr. Bottomley

As the House quite recently approved the arrangement whereby Brazil nuts were given reduced tariffs in consideration of the preference given to colonial bananas, are we to take it that we shall review that arrangement and that the House will be informed with a view to disowning the Order which we passed earlier?

Mr. Low

I said that I was watching the position and would approach the Brazilian Government if that became necessary.