HC Deb 17 June 1954 vol 528 cc2254-6
13. Mr. Wyatt

asked the President of the Board of Trade under what international agreement Her Majesty's Government is prevented from permitting the export of an unlimited quantity of generators of more than 750 kilowatts to the Union of Soviet Socialist Republics.

Mr. Amory

There is no formal international agreement. It is, however, the policy of Her Majesty's Government, as it was that of the previous Government. to operate security controls in conjunction with other friendly Governments.

Mr. Wyatt

Have we not now arrived at a most ridiculous position? The Minister last told us that he himself allowed these generators to go, but that he fixed a limit to them. Has not the Prime Minister stated that he is anxious that all these controls should be removed, as far as possible, and to some extent have they not already been removed? Has not the President of the Board of Trade continually told us that the reason why they have not all been removed lies in the negotiations in Paris? But this matter has nothing to do with them. This control could be removed by the Minister.

Mr. Amory

I think it has very much to do with the consultations taking place in Paris, because the quantitative limits are agreed in consultation with the other countries.

14. Mr. Harold Davies

asked the President of the Board of Trade if he will now make a statement on changes made or contemplated in the list of goods permitted for export to China.

Mr. Amory

There have been no recent changes and none is contemplated.

Mr. Davies

Can the Minister now tell the House whether our lists of controls are wider than those of the Consultative Group on East-West trade? Following his answer to my hon. Friend the Member for South Ayrshire (Mr. Emrys Hughes) in December, can the Minister say whether he is allowing motor-cycles to go to China, because at that time it was not permitted to send motor-cycles while it was permitted to send small cars?

Mr. Amory

The present embargo list results from the United Nations resolution of 1951, and, therefore, any question of altering that list is a matter for the United Nations. The lists operated by the various countries who approved that resolution are substantially in agreement.

Mr. Davies

A group of Chinese business men is now coming to this country. Is the House to be told that we as a nation cannot make any alterations in that list without first consulting the United Nations? If we have to consult the United Nations, has the Board of Trade made a tentative approach with the idea of changing it?

Mr. Amory

The list is a matter for the United Nations. We supported the resolution and have accepted the obligation of that list. I would remind the hon. Member that the businessmen who are coming here from China shortly, I understand at the invitation of the Federation of British Industries, are coming here to discuss normal trade—and I am glad to say that there is plenty of scope for normal trade outside the present embargo list. They are not coming here to discuss the embargo list.

15. Mr. de Freitas

asked the President of the Board of Trade for what reason he refused a Lincoln firm a licence to export £750,000 worth of engineering products to China.

Mr. Amory

The goods in question are marine diesel engines and, in fulfilment of our obligations under the United Nations Resolution of May, 1951, we do not allow the export of such engines to China.

Mr. de Freitas

Are not many of these engines of the type which has been used for a long time in ordinary commercial trade in the upper rivers of China? Is it not a fact that if we do not supply them we shall lose the great goodwill which we have in the China trade for essential imports, and that in the long run my constituents may well be prejudiced if other industrial countries cash in when the embargo on these engines is removed?

Mr. Amory

Again, I am afraid, the answer is that these engines are on the embargo list which was adopted as a result of the United Nations resolution. We are, therefore, bound by that list. The hon. Member suggests that other nations may be willing to supply these goods, but I would remind him that by far and away the greater proportion of industrial exporting countries have also subscribed to that resolution.

Mr. de Freitas

What I am worried about is the long-term position and the loss of our goodwill as a nation which has traded with China for a very long time. I am not saying that these countries will now violate the embargo.

Mr. Amory

In present circumstances, I do not think it would be a wise move on our part to take any action to have the existing list altered.

Mr. Ellis Smith

Will the Minister undertake to consult the Prime Minister about this? Is he aware that some of us were kept in employment in large-scale industry for years as a result of the enormous goodwill which we have in China? Rather than lose that goodwill, could not we take the initiative in order to show the Chinese people that we intend to remain as friendly as we possibly can?

Mr. Amory

The hon. Member and the whole House knows the interest which the Prime Minister is taking in all these questions.