§ 59 Colonel Crosthwaite-Eyreasked the Chancellor of the Exchequer for what reason His Majesty's Government are satisfied that the credits granted by Lazard Brothers and Lloyds Bank and Kleinwort Sons and Company to Polish banks, and which have received the guarantees of the Export Credits Guarantee Department, have been made in the best interests of this country.
§ Mr. JayI would refer the hon. and gallant Member to the reply which my hon. Friend the Secretary for Overseas Trade gave to the noble Lord the Member for South Dorset (Viscount Hinchingbrooke) on 27th April.
§ Colonel Crosthwaite-EyreBut that answer tells this House nothing. Would 1095 the Economic Secretary be so good as to say why Poland, of all countries in Europe, has been singled out in this manner for this loan guarantee? What advantage do we expect to get? Is it capital goods, or current goods? What are we to get in exchange?
§ Mr. JayMy hon. Friend's answer, in fact, gave a lot of information, but the principal advantage which we get in exchange is a number of valuable foodstuffs imported into this country. The hon. and gallant Member must realise that these credits are largely in respect of capital goods exports from this country, which justify a short-term credit of this kind.
§ Viscount HinchingbrookeWhile I appreciate the need to restore our invisible exports, and also to enlarge trade with appropriate countries, is it a good policy and is it strategically wise, to trade with a country beyond the "Iron Curtain" on anything more than a cash-and-carry basis?
§ Mr. JayWe cannot accept the implication that we should stop all trade with the countries of Eastern Europe.
§ Colonel Crosthwaite-EyreWould the Economic Secretary explain why it is that once again the Government are exporting capital goods in order to meet current requirements? Do they not realise that it is the easiest way to "go broke"?