§ 1. Mr. Errollasked the Secretary of State for Foreign Affairs what steps he is taking to prevent unfair competition in British export markets by German manufacturers with factories in the Bizone.
§ The Secretary of State for Foreign Affairs (Mr. Bevin)I am glad to have an opportunity of making a statement on this subject, which has recently attracted considerable attention both in this country and in Germany.
In the first place, a sharp distinction must be drawn between competition and unfair competition. So far as ordinary commercial competition is concerned, it is the policy of His Majesty's Government to restore a healthy and visible economy in Germany. To achieve this, a large and inceasing expansion in German exports will be required. His Majesty's Government do not intend to use their position as an occupying power to prevent such an expansion, providing that it is achieved by fair means.
So far as unfair competition is concerned, I expect that provision will be made in the Occupation Statute to reserve to the Military Governors all necessary powers to prevent the development of unfair trade practices. So far as Ruhr coal, coke and steel are concerned, 342 special powers for the prevention of discriminatory practices will be conferred on the Ruhr Authority under the draft Agreement recently negotiated. In general, it is the policy of His Majesty's Government to ensure that the German economy should develop on a sound and healthy basis, since this offers the most effective safeguard against any resort to unfair trade practices.
§ Mr. ErrollCan the Foreign Secretary say whether he will examine the extremely artificial currency rates which are contributing to the rapid development of German exports, and appear to convey the impression of unfair competition? Will he also consider the feelings of alarm in other European countries at the sight of so much German competition which in many cases is already undercutting British exports, notably in Belgium and France and other recently occupied countries?
§ Mr. BevinMy right hon. Friend the President of the Board of Trade will he making a statement in the House on this matter, and I prefer to leave all those problems to him. My difficulty is that in this case, whereas I am responsible for the administration of Germany, it is the duty of the President of the Board of Trade, if anything is unfair or wrong in respect of currency or anything else, to make representations.
§ Mr. Oliver StanleyWhile agreeing that these questions are more appropriate to the President of the Board of Trade, may I ask when the President of the Board of Trade proposes to make this statement?
§ Mr. Peter RobertsIs the Foreign Secretary aware that there is evidence in Sheffield that firms are losing cutlery orders in India through drastic underselling from Germany?
§ Mr. BevinI think the hon. Member had better wait for my right hon. Friend the President of the Board of Trade. As Foreign Secretary I cannot go into these details. If the Board of Trade find anything is wrong, then they must come along, just as they would on any other problem.