§ 46. Mr. Osborneasked the Prime Minister, since dollar commodity prices have increased in the last year by 16.4 points from 382.1 to 398.5 and sterling prices have fallen by 67.5 points from 478 to 410.5, if he will discuss with President 1380 Eisenhower during his forthcoming visit to the United States of America methods of giving sterling commodity prices the same stability as dollar prices, so as to avoid the spread of Communism in sterling commodity areas; and if he will make a statement.
§ The Prime MinisterI assume that my hon. Friend is referring respectively to Moody's United States index and to Reuter's United Kingdom index of commodity prices. Both are in fact now lower than a year ago, though Reuter's has had the bigger fall. But both include commodities of interest to both sterling and dollar countries, and individual commodities have had very varying fortunes. These indices do not give a true comparison of the prices received by sterling and dollar producers.
§ Mr. OsborneMay I ask my right hon. Friend whether it is a fact that certain sterling commodity prices have fallen considerably? Does he agree that in those areas of the uncommitted third part of the world, where it is so vital to keep them on our side of the Iron Curtain, it would help immensely if we could get greater stability in these prices? Will he take the opportunity when in America to discuss the matter with the President?
§ The Prime MinisterOf course, the stability of prices is important, but I want to correct what I am sure is a misunderstanding on the part of my hon. Friend. For instance, Reuter's index is based on C.I.F. prices, and since these include the very big fall in freight rates, it makes it difficult to compare that with an index which is based upon a different system. As regards the prices of different commodities, as I have said, their fortunes have been rather varying. There have been large falls of about 15 per cent. or more in wool, copper, lead, zinc, cheese and rubber. There have been moderate falls of under 10 per cent. in tin, tea, coffee and butter. There has been practically no change in cotton, jute, meat and wheat. There has been a marked rise in cocoa. Therefore, it is difficult to generalise.
Mr. H. WilsonYes, Sir, but whatever the statistics, will the right hon. Gentleman bear in mind the great importance of this fall in commodity prices to the prospects for world economic affairs? Also, will he be undeterred by the rather 1381 disappointing reaction there has been by the United States to international commodity agreements over the past six or seven years, and will he recognise that there may be a hope for a more constructive attitude at the present time?
§ The Prime MinisterI am never put oil by disappointment at any time.