HC Deb 27 October 1955 vol 545 cc362-3
27. Mr. Grimond

asked the President of the Board of Trade what representations have been made to the United States Government over their higher tariffs and refusal of British tenders for electrical contracts.

The President of the Board of Trade (Mr. Peter Thorneycroft)

Her Majesty's Government have expressed to the United States Government their grave disappointment at the recent decisions in respect of the contracts for the Chief Joseph Dam, and the increase in the United States tariff on bicycles.

Mr. Grimond

Is it not of the utmost importance, if we are to clear our debts with America, that she allows us to trade with her? Can the right hon. Gentleman give us any idea how serious the recent tariff increases will be for our trade?

Mr. Thorneycroft

I should not like to start to make an estimate of the effect on trade. What was distressing was that this series of decisions which were arrived at seemed to run contrary to the expressed opinion of the United States in these matters.

Mr. H. Wilson

Since the General Agreement on Tariffs and Trade provides that where there is unilateral increase of tariffs of this kind compensation is usually to be paid to the country concerned by appropriate changes in other tariffs, will the right hon. Gentleman say what discussion there has been with the United States Government to try to get compensation, at any rate for other industries, if it is quite hopeless to expect any reversal of this decision?

Mr. Thorneycroft

The United States have already conceded their obligation to give compensation in this matter.

Mr. Beresford Craddock

Would my right hon. Friend not agree that it would be a good thing if we in this country enjoyed the same measure of freedom in these matters as is enjoyed by the United States Congress?

Mr. Thorneycroft

The answer is that we do, and if we did this we also would have to pay compensation.