HC Deb 19 May 1953 vol 515 cc1855-6
18. Mr. Gaitskell

asked the Chancellor of the Exchequer to make a statement on the recent economic talks with members of the German Government.

Mr. R. A. Butler

I cannot well add anything to the agreed statement which was issued at the end of these talks. I am circulating a copy with the OFFICIAL REPORT.

Mr. Gaitskell

Can we take it that, arising out of these talks, the German Government are likely to lift further restrictions on imports into Germany in order to reduce their surplus with the European Payments Union?

Mr. Butler

I think we must leave any such action to the initiative of the West German Government, but the right hon. Gentleman will be aware that some very useful conversations took place on the subject of artificial incentive schemes for exports, and those are referred to in the communiqué.

Following is the statement:

ANGLO-GERMAN DISCUSSIONS

The Vice-Chancellor of the German Federal Republic, Dr. Bluecher, and the Minister of Economics, Dr. Erhard, visited London on 12th and 13th May for discussions with the Chancellor of the Exchequer, the President of the Board of Trade and the Economic Secretary to the Treasury.

They discussed the questions of Freer trade and currencies raised in the statements made by U.K. Ministers in the O.E.E.C. Council in Paris on 23rd March. There was general agreement as to the necessary conditions for progress towards the restoration of convertibility and the removal of restrictions on trade; notably, sound internal financial policies, the pursuit of good creditor policies by creditor countries and the availability of adequate financial support. There was full and frank examination of all these questions, and it was agreed that further discussions should be held in the future.

Other economic matters of interest to both countries were also discussed. In particular, it was agreed that the stimulation of exports by artificial incentive schemes distorted the pattern of trade and impaired free competition; the two Governments would consult further together and co-operate with other governments with a view to securing the progressive elimination of such schemes on an international basis.