HC Deb 21 March 1957 vol 567 cc527-30
11. Mr. Rankin

asked the President of the Board of Trade how many applications he has received in the last two years for licences to export diesel engines to China; how many of these were allowed and how many refused; and what were the ratings and values of the engines in each case.

Sir D. Eccles

Sixteen applications have been made in the last two years. Four were not proceeded with and the rest were rejected, except that a licence was granted for one engine of 85 horse- power valued at £407. The applications refused had a total value of £741,872 and the horse-power ranged from 3½ h.p. to 300 h.p.

Mr. Rankin

Is the right hon. Gentleman aware that these engines, which were on the U.S.S.R. embargo list until the autumn of 1954, are still on the embargo list to China, although at the moment they are being exported or re-exported through Russia and other eastern countries to China? Does not he think that it is a tremendous disadvantage to British businessmen that Eastern European countries should be earning profits which they might be earning here? Is not it humiliating to the Minister to realise that, while we may have a trade policy, we have, due to pressure from external sources, to operate within that trade policy an exceptions procedure which renders our whole position ridiculous?

Sir D. Eccles

As the hon. Member knows, the working of the China embargo is subject to consultation and agreement by the Paris Group, but that it has the unfortunate effects he says, I agree.'

Mr. Rankin

On a point of order. As it is necessary to examine this subject very closely, I beg to give notice that I shall raise the matter on the Adjournment at the earliest possible opportunity.

16. Mr. Jay

asked the President of the Board of Trade what representations he has now received from the Federation of British Industries and other trade associations for the further relexation of the strategic embargo on United Kingdom exports to China; and what reply he has made.

Sir D. Eccles

I have received a letter from the Sino-British Trade Committee which represents the interested associations.

The letter presses strongly the case for aligning the strategic embargo on exports to China with the strategic lists for the Soviet bloc.

I told the Committee that full weight will be given to its representations; and my right hon. Friend the Minister of State, Foreign Office, informed the hon. Member for Dunbartonshire, East (Mr. Bence) yesterday that it is likely that this topic will be raised in the Bermuda discussions.

Mr. Jay

Although it was satisfactory to learn yesterday that this matter will be raised at Bermuda, now that there is general agreement both in British industry and in most parts of the House that the embargo has completely outlived its usefulness, cannot the President say that it is now British Government policy to try to secure at least a major relaxation?

Sir D. Eccles

I think that we might wait to see how the Prime Minister gets on in these discussions.

Mr. Jay

Could not the President assure us that it is now British Government policy to secure a relaxation and that the Prime Minister will be pressing for that in Bermuda?

Sir D. Eccles

That is the subject of the conversations.

Mrs. Castle

Is not it a fact that, following Sir Anthony Eden's visit to Washington last year, the House was promised that the British representatives in the Paris Group would press in the Paris Group for a revision of the China embargo list? We have now learned from the Canadian Prime Minister that no such discussions have taken place in the Paris Group. Is not it time, therefore, that the British Government showed a little spirit and guts in this matter and took unilateral action?

Sir D. Eccles

The British representatives in the Paris Group have never disguised their view that some relaxation would be helpful.

Mr. S. Silverman

Will the right hon. Gentleman take his Answer just a little further? Will he bear in mind that, after all, this country is not at war, and that our need for exports is getting stronger every year? Would not it be worth while for this country to resume its freedom to trade with whom it likes, in what merchandise it chooses and on what conditions it can get?

Sir D. Eccles

No, Sir. I think there are certain fields in which it is highly desirable that we should act in concert with our allies.

Mr. Russell

Can my right hon. Friend say what demand there is from China for our exports, and does he think that, if the embargo were lifted, we should export very much to China?

Sir D. Eccles

I should like notice of that question.