§ 1. Mr. Usborneasked the President of the Board of Trade why licences for thread - grinding and gear - shaping machines required by the Union of Soviet Socialist Republics have been recently refused.
§ The Minister of State, Board of Trade (Mr. Derek Walker-Smith)Licences have been refused because the export of these machines to the U.S.S.R. is subject to embargo.
§ Mr. UsborneIs not this embargo somewhat ludicrous at the present time in view of the fact that anybody who has visited the Leipzig or Hanover Fairs now knows that machines of very similar quality are being made in the Eastern European countries and are being obtained by the Soviet authorities? That being so, why cannot we now supply these machines from our own industry here?
§ Mr. Walker-SmithWe think, in conformity with our partners and allies in this matter, that the embargo is effective for the purposes for which it was designed.
§ Mr. FernyhoughWould not the right hon. and learned Gentleman agree that although Her Majesty's Government were wrong when they "went it alone" on 1364 Suez, on this issue they might usefully "go it alone" and be right?
§ Mr. Walker-SmithI do not accept the implication in the first part of the hon. Gentleman's question or the invitation in the second part.
§ Mr. UsborneIs this embargo list, which was made up so long ago, still as valid as it was then? Are there any changes that would make it less valid?
§ Mr. Walker-SmithWhen the hon. Gentleman refers to "so long ago" he no doubt recalls that the strategic controls on trade with the Soviet Union were drastically curtailed in October, 1954. It is on that list that we now proceed.
2. Mr. Usbomeasked the President of the Board of Trade when he intends to lift the restrictions on the export to the Union of Soviet Socialist Republics of machine tools of the types which Eastern bloc countries are exporting to other markets.
§ Mr. Walker-SmithNot before we and our partners in the Paris Consultative Group consider that the strategic reasons for these restrictions have lost their validity.
§ Mr. UsborneAre the Government having discussions with those partners, and particularly with the Americans, with a view to getting these restrictions rapidly modified?
§ Mr. Walker-SmithThere are no discussions taking place relating to the specific point raised in the Question of the hon. Member.