HC Deb 22 November 1956 vol 560 cc1907-8
6. Mr. Bottomley

asked the President of the Board of Trade if he will make a statement about the Export Credits Guarantee Department cover for exports to the Middle East countries.

Mr. P. Thorneycroft

The Export Credits Guarantee Departmentannounced on 2nd August that for the time being, and for commercial reasons, it would not accept for cover any new contracts with, or shipments to, buyers in Egypt, although its guarantee would still apply to contracts already accepted for cover but not then fulfilled. From 19th November it has been necessary, for commercial reasons, to offer cover for new business with Israel, Jordan, Saudi Arabia and Syria only on stricter terms than those available before the outbreak of hostilities in that area.

Mr. Bottomley

Has not the policy of the Government been to encourage trade with the Middle East countries; and as the Government's policy is responsible for the present difficulties there, why penalise these exporters, who are doing their best to help the country?

Mr. Thorneycroft

The right hon. Gentleman knows from his experience in these matters that this is a commercial organisation, not concerned with policy in that respect. It offers commercial cover upon commercial terms.