§ 61. Mr. Sutcliffe
asked the Secretary to the Overseas Trade Department in what instances during the past 10 years there have been infringements of most-favourednation clauses in connection with trade agreements between foreign countries; and what protests have been made in each case by His Majesty's Government?
§ Mr. R. S. Hudson
The only case of any significance occurring during the period mentioned, in which trade agreements between foreign countries contained arrangements inconsistent with this country's most-favoured-nation rights, arose in 1934. Early in that year, the French Government reduced the import quotas allotted to foreign countries, including the United Kingdom, and then concluded a trade agreement with Belgium under which the latter country's quotas were restored to their original level. His Majesty's Government considered that this involved a discrimination in favour of Belgium contrary to their most-favoured-nation rights, and, not 2465 having received satisfaction as a result of representations, they applied a Surtax of 20 per cent. ad valorem to certain French goods by way of counter-discrimination. Negotiations followed, leading to the conclusion of the Anglo-French Trade Agreement of June, 1934, under which each side withdrew their discriminatory measures.