HC Deb 22 November 1938 vol 341 cc1510-1
22. Mr. Chorlton

asked the President of the Board of Trade whether he will abrogate the Most-Favoured-Nation Clause in all treaties, with a view to leaving him freer to make bargains with other countries?

Mr. Stanley

No, Sir. The view of His Majesty's Government, which has previously been stated on numerous occasions in this House, is that the general maintenance of the principle of most-favoured-nation treatment is essential for the stability of commercial relations. His Majesty's Government would not, however, propose that such treatment should be accorded indefinitely to any country which is not prepared to meet the reasonable requirements of this country with regard to the treatment of United Kingdom goods.

Mr. Levy

Would it not be a benefit to my right hon. Friend in making bi-lateral treaties if this clause were modified?

Mr. Stanley

I do not think that that would be the case. Hon. Members should realise that it would make little change in the situation if we were to abolish the most-favoured-nation system unless countries with which we were bargaining were prepared to do the same.

Mr. Shinwell

Is there not some case for modifying the clause in cases where goods are heavily subsidised by certain foreign countries?

Mr. Stanley

As I have said, if we thought goods were being discriminated against by a particular country, we would consider the possibility.

Mr. H. G. Williams

Does my right hon. Friend know anyone outside the Board of Trade who believes in this clause?

Mr. Stanley

I am sure they would not be among the circle of my hon. Friend.