HC Deb 17 June 1954 vol 528 cc2258-9
20. Mr. Harold Davies

asked the Chancellor of the Exchequer if he will publish the terms of the agreement between the United Kingdom and the Federal German Government whereby both countries agreed not to subsidise exports.

Mr. Maudling

Following the talks which my right hon. Friend and I had with the German Federal Minister for Economic Affairs in Bonn last month, a joint Anglo-German statement concerning the restoration of conditions of normal competitive trade was issued to the Press on 4th June. I am sending a copy to the hon. Member.

Mr. Davies

While thanking the hon. Gentleman for that reply, may I ask him whether he has any information from Dr. Erhard, the Minister of Economics, about the discussions now going on between the German industrialists and shipbuilders about the proposition to subsidise, to the tune of £4 a ton, steel, which is to be put into German export shipping? Is he aware that both sides in that agreement undertook that no unfair incentives would be given to exports?

Mr. Maudling

I think that that matter arises on two Questions which appear later on the Order Paper today.

Mr. Gaitskell

Is it not the case that the Germans have agreed to change the present taxation arrangements which subsidise their exports, but only at the end of 1955? Will the Economic Secretary explain why there is this long delay, and why we have not reached an agreement with them to remove these subsidies much sooner?

Mr. Maudling

I think the right hon. Gentleman has failed to observe that this undertaking by the German Government is an entirely unilateral one which is not given in exchange for any action on our part, and that it is being taken by the German Government in advance of any similar action by many other European countries who are still continuing this practice.

Mr. Stokes

But the obviation of sin is always unilateral.

Mr. Maudling

I should not like to contest with the right hon. Gentleman either the question of sin or its obviation.