HC Deb 11 December 1947 vol 445 cc1201-4
The President of the Board of Trade (Mr. Harold Wilson)

With your permission, Mr. Speaker, I should like to make a statement about Anglo-Soviet trade. As the House knows, I flew to Moscow at the end of last week to open the resumed talks on trade and finance with Mr. Mikoyan, Soviet Vice-Premier and Minister of Foreign Trade. The talks, which were conducted in a friendly atmosphere, made good progress, and before I left Moscow yesterday morning we had reached agreement in principle on the whole range of subjects covered. These subjects on which agreement was reached included quantities, prices and detailed terms and conditions of contract for the shipment to the United Kingdom of a substantial quantity of coarse grains out of their 1947 harvest. In addition to the immediate supply of certain goods from the United Kingdom, provision was made for the Soviet importing organisations to enter into contracts with the appropriate British firms for the supply of engineering equipment from the United Kingdom. We also agreed that in May next there should be further discussion to prepare long-term supply arrangements over a wider range of goods, providing for a balanced programme of trade between the two countries. Our aim was to secure a long-term balance in trade and financial transactions between the two countries and there was no question of payment by either side in hard or scarce currency.

Agreement was reached in principle also on the terms of repayment of the credit advanced under the Civil Supplies Agreement of 1941 and on other financial questions.

His Majesty's Ambassador, who was associated with me in my discussions with Mr. Mikoyan, is now working with the Soviet side in drafting the terms of a formal Agreement which both sides hope will be ready for signature, together with the contracts for the supply of grain and for certain British goods, in the near future.

Mr. Eden

While we all wish to welcome the agreement the right hon. Gentleman has mentioned—[HON. MEMBERS: "Cheer up."]—and to congratulate the right hon. Gentleman on his part in it, I would like to ask whether he can tell us anything more about the reference he made to the terms of repayment of the credit advanced under the Civil Supplies Agreement of 1941?

Mr. Wilson

I said we have reached agreement in principle on that matter. The exact drafting and details will be quite clear in the formal agreement and will, of course, be communicated fully to the House when the agreement is signed. But, I think it would be unwise, and perhaps not very helpful, if we were to give further details on that matter now.

Mr. Clement Davies

May I offer to the right hon. Gentleman our most sincere congratulations on his success in a task which must have been an extraordinarily difficult one, and welcome him back to the House?

Mr. Stokes

Has my right hon. Friend attached any conditions to the arrangement which will ensure the release of the 17 million slaves from concentration camps?

Mr. Lipson

When is it anticipated that the first supplies of grain are likely to be made available?

Mr. Wilson

As I said, we are now to get to the stage of drafting the formal agreement, and then signing the contract, but Mr. Mikoyan informed me that as soon as the contract is signed, they will have grain available at the Black Sea ports within two or three weeks.

Mr. Stokes

I asked a perfectly reasonable question of the right hon. Gentleman. May I have an answer?

Mr. Speaker

To tell the honest truth, I thought it was not relevant, as a matter of fact.

Mr. Stokes

If I am out of Order, I beg to give notice that I will raise the matter on the Adjournment.

Colonel J. R. H. Hutchison

Was timber a subject of the negotiations, and was any progress made in that matter?

Mr. Wilson

Yes, of course, we discussed timber to a very considerable extent, but, for various reasons, we were not able to come to an immediate contract for supplies of timber, because, amongst other things, the timber shipping ports are at present frozen. But it was agreed that in the wider negotiations which we hope to hold next May, timber will come up, and we hope to negotiate a satisfactory agreement for such timber as is available.

Mr. Warbey

In regard to timber, will my right hon. Friend bear in mind that the ports are due to become ice-free at or about the time when it is suggested negotiations should be resumed, and that it may be desirable to have contracts ready, so that it can be shipped as soon as the ports are ice-free?

Mr. Wilson

We have contracts ready; all the terms have been agreed, and it is just a question of settling the quantities and the prices—[Laughter.] Hon. and right hon. Gentlemen opposite find it very amusing. I only wish they could have been there to see the speed and helpfulness with which quantities and prices were fixed between five o'clock and six o'clock yesterday morning.

Mr. Butcher

Will the right hon. Gentleman take advantage of these cordial relations, on which we congratulate him, to re-open the question of the Soviet wives of British subjects?

Mr. Parkin

Is my right hon. Friend aware that I have received a resolution from engineers in my constituency pledging themselves to increase the production of machinery to pay for these goods, and will he take this as the best form of personal congratulation?

Captain Marsden

In these agreements did the right hon. Gentleman keep in view the necessity of shipping at least 50 per cent. of everything that comes from Russia in British ships? Has he overlooked that?

Mr. Wilson

So far as grain is concerned, the figure will be far higher than 50 per cent., and I would not have been satisfied with a figure of 50 per cent. [...] can assure the hon. and gallant Gentleman that the question of shipping has been very fully discussed, and in the arrangements we have made we have secured a great improvement in the position of British shipping of Anglo-Soviet trade, compared with the state of affairs before the war.

Mr. William Shepherd

Is the right hon. Gentleman able to say whether prices for the grain discussed are as favourable as those previously discussed?

Mr. Wilson

The hon. Gentleman knows we never disclose in the House, or anywhere else, the prices we pay for the goods we buy; but the prices agreed on were very fair and reasonable in relation to the present price ruling in world markets.

Mr. Erroll

In view of the congested state of the order books of many British manufacturers, will the right hon. Gentleman say whether he gave any guarantees of deliveries, or will that be left to individual firms?

Mr. Wilson

When the agreement is finally settled, the hon. Member can see what has been done in this matter. I can tell him that we did satisfy Mr. Mikoyan on that point.