HC Deb 24 June 1954 vol 529 cc561-2
2. Mr. Grimond

asked the Chancellor of the Exchequer if he will make a further statement on the rebate offered to German shipbuilders on steel, contrary to the agreement reached between the United Kingdom and the German Government.

10. Mr. Blenkinsop

asked the Chancellor of the Exchequer whether he is in a position to make a further statement regarding rebates on steel to West German shipbuilders.

The Economic Secretary to the Treasury (Mr. R. Maudling)

Preliminary reports which I have seen have confirmed the information given in the Press that a private rebate arrangement is at present under discussion between the German steel producers and shipbuilders. I understand that so far the German Government has not been officially informed of these discussions.

The joint statement which my right hon. Friend and Professor Erhard have made concerned only Government action. If either Government were asked to facilitate such an arrangement, that Government would naturally be guided by the principles laid down in the joint statement.

Mr. Grimond

Are we to understand that the agreement reached between the Chancellor and the German Government did not take any account of the possibility of private arrangements being made which might be contrary to the spirit of the agreement?

Mr. Maudling

Of course, arrangements are constantly going on in private industry between one firm and another about rebates of different kinds, but the agreement between the Governments was naturally confined to the sphere of responsibility and the power of the respective Governments.

Mr. Blenkinsop

Is the Economic Secretary satisfied that there is no agreement at all between the West German Government and the steel industry which influences this agreement?

Mr. Maudling

We have been into this with the West German Government, and I can give the hon. Member an assurance that the West German Government have not been consulted in any way in this matter.

Mr. Gaitskell

Do not the Government propose to take up this matter, however, with the German Government? Is it not really an obvious evasion of the spirit of the agreement reached with the West German Government; and, in view of the fact that the German steel industry is part of the Schuman Plan, would it not be wise to pursue the matter a little further and take the matter up with the West German Government to see if we cannot get it put right?

Mr. Maudling

I do not think there is any question of evasion here. The Schuman Plan is another and very complicated question. I made it clear in my earlier reply that we have been in touch with the German Government in the matter and, so far as action or influence of any kind by either Government is concerned, we are completely agreed on the action we should take.

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