HC Deb 24 April 1958 vol 586 cc1139-41
15. Mr. Lewis

asked the President of the Board of Trade on how many occasions he has met representatives of the Federation of British Industries to discuss with them the possibility of a commercial agreement being signed between East Germany and the Federation of British Industries; and what was the last date on which such discussions took place.

Sir D. Eccles

As my hon. Friend the Minister of State told the hon. Member on 1st and 17th April, officials of the Federation of British Industries are in regular contact with the Board of Trade. The negotiations between the Federation of British Industries and the East German Chamber of Foreign Trade are still proceeding, and I hope they will prove successful.

Mr. Lewis

Can the Minister explain why it is that in the case of West Germany, which does not recognise East Germany, they do £250 million a year in sterling trade with East Germany, whereas the West Germans are against Britain signing a commercial agreement with East Germany because they allege that it might lead to political recognition? Why should not Great Britain do some of this trade with East Germany when, in fact, we know that the West Germans are doing £250 million worth a year? Why should we not have a bit of it?

Sir D. Eccles

I cannot accept the figure of £250 million, but the answer to the right hon. Gentleman is that East and West Germany have a frontier. Berlin is cut in half, and goods go from one part to the other.

Mr. Mikardo

Is not the right hon. Gentleman aware that in the recent resumption of negotiations by the Federation of British Industries the global volume of the proposed trade treaty has been reduced by two-thirds and brought down to a level of trade no greater than what is being done without a treaty anywhere? In fact, no progress has been made at all. Is it not time that the British business men got as much protection from the right hon. Gentleman as German business men get from Dr. Adenauer?

Sir D. Eccles

The hon. Gentleman must realise that these are business men conducting the negotiations——

Mr. Mikardo

Under the right hon. Gentleman's orders.

Sir D. Eccles

They are doing it on their own.

Mr. Mikardo

Oh!

Sir D. Eccles

And there are quite a number of goods which the East Germans wish to send us here which perhaps would not be very welcome.