HC Deb 07 June 1951 vol 488 cc1203-4
18. Colonel J. R. H. Hutchison

asked the President of the Board of Trade whether he will now make a statement on the terms of the recent agreement with the Argentine, so far as general commerce and trade is concerned.

Sir H. Shawcross

As the answer is rather long I will, with the hon. and gallant Member's permission, circulate it in the OFFICIAL REPORT.

Colonel Hutchison

Can the Minister nevertheless say whether the Argentine is still short of sterling and, if not, whether any alleviations of the import restrictions have been given effect to because it was agreed in effect that such alleviations need not wait upon the signing of the Protocol?

Sir H. Shawcross

That is a rather long question. If the hon. and gallant Member will look at my answer and if, after doing so, he considers there are any points which he wishes to raise, I shall be glad to talk to him about them.

Following is the answer:

The Protocol, which was signed in Buenos Aires on 23rd April last and is valid for 12 months, supplements the Trade and Payments Agreement with Argentina of 1949. The text has been published as Cmd. 8231. Article 9 suspends Schedules 1, 2 and 3 of the 1949 Agreement. It records that the two Governments had made a preliminary examination of possible United Kingdom-Argentine trade over the next 12 months and had instructed the Mixed Consultative Committee set up under the 1949 Agreement to continue this review in order to achieve a balance of sterling payments with trade at the highest possible level, taking into consideration the requirements of both countries. The two Governments agreed that while this review is taking place all facilities possible will be given for the continuance of the traditional trade between the two countries.

As my right hon. Friend the Chancellor of the Exchequer informed the House in a statement after Questions on 24th April, we have undertaken, under Article 12 of the Protocol, to be prepared to convert at the Argentine Government's request any excess in Argentine sterling balances above £20 million into third currencies including, in the last resort, dollars.

The Protocol, should remove many of the difficulties which have proved such obstacles to the smooth flow of Anglo-Argentine trade. It is now of great importance, particularly having regard to the provisions of Article 12, that exporters to Argentina should make every effort to draw full advantage from the improvement in commercial relations which the Protocol, has brought about. I hope that the discussions now taking place in the Mixed Consultative Committee in Buenos Aires will result in the early issue of Argentine import licences on a scale which will justify renewed confidence in the Argentine export market.