HC Deb 17 April 1956 vol 551 cc827-30
16. Mr. Hurd

asked the President of the Board of Trade what estimate he has formed of the potential demand for farm tractors in China; and to what extent British manufacturers are now permitted to supply this demand.

Mr. Low

I have not the information necessary to form such an estimate. As my right hon. Friend the Minister of State for Foreign Affairs informed the House on 11th April, licences to export a limited number of tractors have been issued.

Mr. Hurd

May we take it that this limited number of tractors represents samples and that it is hoped that business will result? Will my right hon. Friend assure us that if there are offers of business from China the Government will give every facility for the export of the tractors and agricultural machinery so long as they have no strategic or military importance?

Mr. Low

All we know at the moment is that the Chinese want small numbers of various types, probably to try them out. That is the position at the moment. We have not yet got as far as the position which my hon. Friend has mentioned.

Mr. Hector Hughes

Does the right hon. Gentleman realise that he has not given the real reason for the diminution in the export of agricultural machinery? Does he realise that the real reason is the shortage and bad allocation of steel? Will he consult the Minister of Supply with a view to rectifying that situation, particularly in Aberdeen?

Mr. Low

I do not think that is the real reason. The hon. and learned Gentleman has forgotten that the responsibility for steel was transferred from the Minister of Supply many months ago.

23. Mr. Gough

asked the President of the Board of Trade whether, in view of his decision to grant licences for sample tractors to be exported to China, he will now permit British marine engines of similar power to be exported as samples in response to outstanding Chinese inquiries.

Mr. Low

Marine engines are not in the same category as agricultural tractors.

Mr. Gough

Would not my right hon. Friend agree that many of the engines are precisely the same as those used on tractors and, furthermore, that a large group of our exporters are already exporting marine engines of from 7 h.p. to 4,000 h.p. to both the Soviet Union and satellite countries? What difference is there between them and China?

Mr. Low

The difference lies in the purposes for which the engines would be used.

25 and 26. Mr. Snow

asked the President of the Board of Trade (1) which Government Departments have to be consulted by his officials before a licence can be granted for the export of galvanised sheet to China; and what steps are being taken to reduce time from the submission of the application to the granting of the licences; and

(2) how many officials within his Department have to consider or scrutinise each application for a licence for the export of galvanised steel to China.

Mr. Low

Galvanised sheets are on the embargo list to China. Applications have to be considered carefully before exceptions are approved and extra information may have to be asked of the applicant. There is consultation with interested Departments in the normal way. Decisions on applications giving complete information take about a week.

Mr. Snow

Is the right hon. Gentleman aware that in many cases applications take considerably longer than that, and that certain questions are asked which his Department knows perfectly well exporters cannot answer? Why is the treatment of British shippers so markedly worse than the treatment which other countries allow to their own shippers in the export trade?

Mr. Low

I do not accept that our treatment is markedly worse. We have a procedure to go through. I have personally investigated a case about which the hon. Gentleman wrote to me, and I am satisfied that, although there was a mistake in part of that case, the ordinary procedure is working quite well.

27. Mr. Snow

asked the President of the Board of Trade whether he will take steps to ensure that British companies are not frustrated in competing with Japanese companies by the lengthy consideration of applications for licences to export to China goods on the permitted list or goods which may be the subject of quantitative controls.

Mr. Low

There is no quantitative control list for China. Licences for goods on the permitted list are issued within about two days of the receipt of the application, apart from exceptional cases where the information available is insufficient to establish the facts readily.

Mr. Snow

Is the right hon. Gentleman satisfied that British shippers receive parity of treatment as compared with Japanese shippers, and is he aware that at present orders to a total of 15,000 tons of galvanised sheeting are being supplied by Japanese shippers while his Department is holding up the licences for British shippers?

Mr. Low

I repeat that I have looked into the case about which the hon. Gentleman told me, and I am satisfied that we do all we can to hurry up our decisions.

Mr. Shinwell

Is it not a complete farce that Japan, Belgium and other countries which desire to be associated with the West should be permitted to export what are regarded as strategic goods to China when our own traders are prevented from doing so?

Mr. Low

I think the right hon. Gentleman has misunderstood the Question. This refers to the exceptions procedure, and exceptions are allowed in certain cases.

Mr. Shinwell

Why does the right hon. Gentleman seek to cover up the refusal of the Government to relax the present position by talking about procedure? Do the other countries which I have mentioned have regard to procedure, or are we the only one which does?

Mr. Low

All countries have regard to the exceptions procedure.

Mr. Snow

In view of the unsatisfactory nature of the reply, and of my belief that the right hon. Gentleman is thoroughly misinformed, I beg to give notice that I will raise this matter on the Motion for the Adjournment.