§ 6. Mr. Leatherasked the President of the Board of Trade if he is aware that a recent change in Brazilian currency exchange rates has nullified the tariff preference negotiated for Commonwealth bananas; and what steps be proposes to restore the position.
§ Mr. P. ThorneycroftI would refer my hon. Friend to the Answer given on 5th June to a Question on this subject by my hon. Friend the Member for Wembley, South (Mr. Russell).
§ Mr. LeatherWhy does my right hon. Friend want to wait and see? This is a simple matter of arithmetic. The juggling in the exchange rate precisely equals the preference negotiated. Surely we are not 216 going to wait until irreparable damage has been done to this year's sale of the West Indies banana crop before we take action?
§ Mr. ThorneycroftThis is a matter of arithmetic but not a simple matter of arithmetic. I would prefer to wait and see how these matters work out before giving any final answer.
§ Mr. BottomleyThis matter was raised last week, when we impressed on the Minister that it was one of urgency. Surely some action has been taken about it, and the Minister should be in a position to tell us what it is?
§ Mr. LeatherIs my right hon. Friend aware that this banana crop will be coming on the market within a very few months, and if we wait until then it will be too late and the whole crop will be ruined, and our good faith will be very greatly prejudiced in the eyes of the West Indies Government?
§ Mr. ThorneycroftI have these matters in mind.
§ Mr. BottomleyIt is no use the Minister saying that Brazil consulted the International Monetary Fund. This House gave approval to a Resolution which gave concessions to Brazil provided that she did not do anything of this kind, but, surely, now that Brazil has done it, we ought to take action against her?
§ Mr. ThorneycroftI am bearing these matters in mind. I am aware of the effect that this step has on the preferential position, and I will take into account the observations made.