25. Mr. Leeasked the President of the Board of Trade why, in view of the need to solve the balance of payments problem, he has lifted the import controls on 194 paper, paper board, wood-pulp and all paper-making material.
§ Mr. LowThe United Kingdom, along with other members of the Organisation for European Economic Co-operation, accepted in January, 1955, the obligation to free 90 per cent. of the imports from other member countries from import restrictions. To achieve this we had to remove import controls from pulp, paper and board. Until recently, for balance of payments reasons, we felt bound to maintain all existing import restrictions. In deciding to remove these controls as from 22nd July we had in mind that the maintenance of a high degree of liberalisation of trade in Europe is one of the main objectives of our commercial policy, not least in the interest of our own exports and so of our balance of payments.
Mr. LeeIs the Minister saying that our balance of payments problem is now so much less difficult than it was and that, therefore, we can afford this kind of thing; or is he able to tell us that we get some compensating increase in our export business to balance the increase in imports?
§ Mr. LowNo, Sir, what I am saying is that the liberalisation of trade in Europe is very important to our commercial policy and to our balance of payments, that there has been some improvement since last year, and that now seemed to be the right time to take this step forward.