FOREIGN BOYCOTTS BILL: RECOMMENDATIONS (Hansard, 26 March 1979)

Lord JANNER
My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.

§ Lord JACQUES
My Lords, I would refer the noble Lord to the speech of my noble friend Lord Goronwy-Roberts in the debate on the report of the Select Committee on 1st February. He gave the Government's response to the Select Committee's recommendations and described the steps they were taking. The noble Lord, however, will be interested to learn that today the Government have issued a new note on the Arab Boycott for the guidance of firms; copies will be available in the Library and also in the Printed Paper Office.

Lord JANNER
My Lords, while thanking my noble friend for that reply, may I ask whether he is aware that at the present time diplomats and trade missions are sending round notes encouraging trading with countries which are boycotting, and which contain information about the requirements of the boycotters that is contrary to the provisions of the Treaty of Rome? Is he aware that people are very anxious that the Government should not continue to authenticate any documents, negative affidavits and so on, which are being produced for the 1408 purpose of encouraging the boycotts? In those circumstances, will the Government take very much stronger action to help to carry out the action to which his noble friend referred at the time he made the speech in the House condoning the boycott?

§ Lord JACQUES
My Lords, of the matters mentioned by my noble friend the only one of which I have any knowledge is the question of authenticating signatures. As explained by my noble friend Lord Goronwy-Roberts, the Government intend to consider further the desirability and practicability of ceasing to authenticate the signatures on negative certificates. Before coming to any final decision they wish to consult with industrial and commercial organisations most affected, and at the present time they are doing so. There is a difficult point of principle involved and there could be some risk to our exports. Nevertheless, the Government recognise the importance that the Select Committee attached to the making of a gesture of this kind, which in their view would have substantial presentational value, and it is a matter which will be seriously considered once the inquiries have been completed.

Lord JANNER
My Lords, may I thank my noble friend for the reply he has just given and urge him to realise—

§ The LORD PRIVY SEAL (Lord Peart)
Ask him a question!

Lord JANNER
I am asking my noble friend whether he is prepared to accept my urging that this kind of action with regard to authenticating negative certificates of origin is very much against the interests not only of the trading community but of the community as a whole. Will he please say what steps he is taking with the EEC and other nations in order to help this fight against the vicious and atrocious methods which are being used?

§ Lord JACQUES
My Lords, it would appear to me that two issues have been raised. The first is the negative certificates, and we are doing what we can on that. With regard to the EEC, my right honourable friend made the Government's position on that issue perfectly clear. He gave evidence in writing to the Select 1409 Committee. The Select Committee printed his reply, which is available for everybody to see. I cannot add to that reply; I could only repeat it.

§ Lord BYERS
My Lords, I wonder whether I could ask the noble Lord when the consultations on negative certificates of origin are likely to be completed? Is there any chance of them being completed by Wednesday night?

§ Lord JACQUES
My Lords, I would guess that this is extremely unlikely, but perhaps it does not matter.

§ Lord SHINWELL
My Lords, does not my noble friend realise that merely to consult business organisations about what they are going to do or not going to do is of no value, and that, unless drastic action is taken, those people—I do not want to mention who they are—who are only too willing to destroy the possibility of peace between Egypt and Israel, will be encouraged to take further action? It is of the utmost importance that the Government should take the step of bringing this stupid and unnecessary boycott to an end.

§ Lord JACQUES
My Lords, I think I should remind the House that certificates of origin are the normal international practice, but not negative ones. The normal procedure with the boycott is that the negative certificate is confirmed by the local chamber of trade, stamped by them, and that is the end of the matter. That is the normal procedure. But in some cases the exporter goes to a notary and, in effect, gives an affidavit, and in that case some of the countries connected with the boycott do require authentication by the Foreign Office. We are trying to put an end to that. I am sure that the House would agree that first we must consult with the chamber of trade which does practically all the authentication.

§ Lord BYERS
My Lords, I should like to follow up what I asked previously. Surely it is the position of the Government that the negative certificate discriminates against a State with which we have friendly relations? Surely the noble Lord is not moving from that position? It is discrimination because it is a negative discriminatory certificate.

§ Lord JACQUES
My Lords, all that the Foreign Office does is to authenticate the signature of the notary.

§ Lord ELTON
My Lords, if the noble Lord, Lord Jacques, accepts the argument of the noble Lord, Lord Byers, that this is discriminating against friendly States, does he not also accept that, where chambers of commerce and trade already authenticate signatures perfectly satisfactorily, for the Government to do the same thing is merely to endorse their approval of a procedure which, in fact, we all detest.

§ Lord JACQUES
My Lords, what we would like to do—and I am keeping within the bounds of practicability—is to have the matter ended once the chamber of trade has authenticated. We want that to be the beginning and the end, and that is what we are moving towards. Surely we must be given an opportunity of consulting with the National Chamber of Trade on the issue and that is what we are doing.

§ Lord REDCLIFFE-MAUD
My Lords, I appreciate that the Foreign Secretary was good enough to let the Select Committee know exactly what he thought at the time he gave evidence in writing to the Select Committee. However, would it be right to say that, besides a frank admission by the Foreign Secretary that it is he who is raising this matter in the European Economic Community—which we appreciate he would not wish to do—there are other diplomatic ways indicated by the Committee in their report which are perhaps being followed up and which may, if not before Wednesday evening, at least render it possible to develop a consensus within the European Economic Community in relation to the boycott?

§ Lord JACQUES
My Lords, I do not understand all the concern about Wednesday evening. My right honourable friend is fully aware of the points which have been made by the noble Lord and I am quite sure that, as he is as much against the boycott as anyone else, he has done what he can to try to get it raised without raising it himself.