HC Deb 15 April 1946 vol 421 cc2329-35
30. Mr. Scott-Elliot

asked the President of the Board of Trade whether he has any statement to make about obtaining the views of trade, industry and labour, before His Majesty's Government enter the trade negotiations proposed by the U.S.A. in Command 6709.

Mr. Marquand

I would ask my hon. Friend to await a statement which my right hon. Friend the Lord President of the Council proposes to make after Questions today.

Later—

The Lord President of the Council (Mr. Herbert Morrison)

I apologise for the length of this statement, but it is a matter of great importance to trade and industry. In the statement which he made to the House on the 6th December with regard to the United States Proposals for Consideration by an International Conference on Trade and Employment (Cmd. 6709), the Prime Minister said that both the United States and. the United Kingdom intended, well in advance of the international conference, to carry on between themselves and other countries, including British Commonwealth countries, preliminary negotiations upon the subjects dealt with in the American document. These preliminary negotiations would be designed to prepare the ground thoroughly for the full international conference, which is to be called by the United Nations.

The United States Government have accordingly invited the Government of the United Kingdom to nominate representatives to attend a preliminary meeting. His Majesty's Government have accepted this invitation, and I understand that similar invitations have been accepted by the Governments of Canada, Australia, New Zealand, South Africa and India, and of Belgium-Luxembourg, Brazil, China, Cuba, Czechoslovakia, France and the Netherlands, while the U.S.S.R. is still considering the invitation. The United Kingdom Delegation will represent Newfoundland, Southern Rhodesia, Burma and the Colonial Empire, and will be assisted by advisers appointed for the purpose by the Governments concerned. No date has yet been fixed for the preliminary meeting.

It is hoped that the countries attending the preliminary meeting will reach substantial agreement among themselves bo[...] on the adoption of effective domestic and international measures for the preservation of high levels of consumption and employment, and on the positive contributions which they are prepared to offer towards the reduction of trade barriers of all kinds. The intention is that any agreement reached on the basis of these offers should be considered by the full international conference, in the hope that the countries not attending the preliminary meeting would be prepared to make their contributions on a similar basis and that a comprehensive agreement should be brought into operation. The full conference will be held under the auspices of the Economic and Social Council of the United Nations, which has approved the initiative taken by the United States Government in the matter and has constituted a Committee to prepare for the full Conference.

One of the factors which will be essential to the success of the Conference will be a full exchange of views between the members of the British Common wealth and Empire; whose economic interests are so closely interwoven. The United Kingdom Government are in communication with other Common-wealth Governments with a view to a meeting being held to discuss the American proposals in detail before the preliminary meeting to be convened by the United States. The date of these Commonwealth discussions will depend to some extent on the date of the latter and will be arranged to suit the convenience of the Commonwealth Governments concerned.

Although, as I have said, no dates have yet been fixed, either for the preliminary meeting or the Commonwealth discussions which will precede it, it will be vital for the success of the negotiations that the United Kingdom Delegation should enter them with a full understanding of the considered views of trade, of industry and of labour in this country. I am therefore getting in touch with the Association of British Chambers of Commerce, the Federation of British Industries, the National Union of Manufacturers and the Trades Union Congress. My right hon. Friends the Minister of Agriculture and Fisheries, the Secretary of State for Scotland and the Secretary of State for the Home Department will similarly arrange to obtain the views If the various organisations representing the farming, fishing and ancillary industries in Great Britain arid Northern Ireland, and my right hon. Friend the Minister of Food will similarly obtain the views of the food industries of the country. Organised labour will have an opportunity of expressing its views through the Trades Union Congress. We shall welcome the views of all these bodies on every aspect of the negotiations; but, in particular, I am anxious to ensure in the first place that we know what concessions United Kingdom export industries think it important to seek from the Governments of other countries taking part in the negotiations and the relative importance that should be attached to such concessions; and. secondly, how much importance is attached to particular preferences now accorded to this country by other parts of the Commonwealth. Finally, I recognise that it is desirable that the United Kingdom Delegation should, before entering the negotiations, be supplied with as complete a knowledge as possible of the circumstances of every industry which is likely to be affected in any way by modifications of the United Kingdom tariff, or by other aspects of the trade proposals. Accordingly, the letters which are being sent today to the representative bodies I have mentioned—I am placing specimens of these letters in the Library of the House—will explain that any trade organisations who think that their interests may be affected should make their views known to the Department with which they normally have dealings. Moreover, the various Government Departments concerned will not hesitate in any case in which it may be helpful to take the initiative in seeking, when practicable, the advice of representatives of industries in addition to the other organisations I have already mentioned.

The letters to the organisations suggest that they should communicate with the bodies affiliated to them in order that the views expressed may be as representative as possible. Other interested organisations not affiliated to these national bodies are, of course, at liberty to submit their views in writing to His Majesty's Government.

I recognise that it must be difficult to make constructive proposals, particularly in regard to the level of tariffs and preferences, at a time when uncertainty about the future trend of prices and costs is unavoidable and when there is a universal shortage of many classes of goods. On the other hand, His Majesty's Government believe it is in the best interests of the country to join in a determined effort to secure the clearance of trade barriers by concerted international action while the situation is still fluid. It is their aim to work now, in collaboration with other countries, for the creation of conditions which will allow the largest possible exchange of goods in a future in which supply will have caught up with demand and in which it may be more difficult to find markets than to obtain goods.

Thus we hope to enter the negotiations fortified by expert advice. But the negotiations will be complex and it is only in the light of the final offers and counteroffers that it will be possible to assess the advantages and disadvantages to national interests I would, therefore, appeal to all concerned to remember that the ultimate objective is to secure such a worldwide lowering of trade barriers as will lead to a great increase in international commerce and so contribute to that expansion of our own exports which is essential to the maintenance of our position as a great nation.

Mr. Oliver Lyttelton

While 1 thank the right hon. Gentleman for his full, perhaps overfull, statement on the matter, I wish to ask two questions. The first is whether I would be right in reading it in the light of assurances given to the Leader of the Opposition concerning Imperial Preferences. Secondly, may we have an assurance from the Lord President of the Council that the forthcoming negotiations will not stand in the way of the Government carrying out the policy for British agriculture as announced on 15th November?

Mr. Morrison

The undertakings given by the Prime Minister still obtain, and, of course, will be upheld. In regard to agriculture, these discussions will in no way prejudice the statement on the long term policy made by my right hon. Friend the Minister of Agriculture.

Mr. Clement Davies

May I, on behalf of my colleagues and myself, express our pleasure at the eminently satisfactory statement made by the Leader of the House, and express the hope that the negotiations will be successful in bringing about a better economic situation for every country in the world?

Captain Sir Peter Macdonald

May I ask the right hon. Gentleman if he will give an assurance to the House that before any undertakings are entered into, not only trading organisations in this country but organisations throughout the Colonial Empire will be consulted, and that no decision affecting Imperial Preference will be entered into without their views being taken into consideration?

Mr. Morrison

That is the responsibility of the Colonial Office, and I feel sure that my right hon. Friend will take care of that aspect of the matter. At any rate, I will call his attention to that aspect of the matter.

Mr. Walkden

Might I ask my right hon. Friend whether the negotiations will at any stage prejudice our fight to continue our policy, or develop our policy, of bulk buying, and bulk purchases, for the nation, by the nation?

Mr. Morrison

I think not. My recollection is that that point was protected. I do not think that there is any reason why these negotiations should prejudice that point.

Sir Arnold Gridley

May I ask the right hon.. Gentleman, in view of the transcendent importance of the questions to which he has referred, and the difficulty of giving any date for these resepctive conferences, that we may be allowed as long notice as possible before the first conference is held? Those who represent certain associations such as the British Association of Chambers of Commerce, might then have ample time to consult our respective constituent bodies in the country.

Mr. Morrison

The hon. Gentleman will appreciate that three conferences have to be kept in mind, the Commonwealth Conference, the Preliminary Conference and the full National Conference under the auspices of U.N.O. It would be our wish, and we shall certainly do our best, to give everyone an opportunity. It is partly for that reason, that I wanted to give everyone in trade and industry an opportunity to express views, that I have made the statement now, instead of waiting until the date was announced.

Mr. Walter Fletcher

May I ask the right hon. Gentleman, where an internationally approved and desired piece of machinery is in jeopardy, if he will give an assurance that it will not be suppressed without proper consideration? This applies particularly in reference to the recent action in regard to the suppression of the Liverpool Cotton Exchange.