HC Deb 02 June 1959 vol 606 cc19-21
31. Mr. Emrys Hughes

asked the President of the Board of Trade if he will make a statement on his recent visit to Russia.

32. Mr. Frank Allaun

asked the President of the Board of Trade if he will make a statement on the outcome of his visit to Moscow.

The President of the Board of Trade (Sir David Eccles)

The text of a Five-Year Trade Agreement with the U.S.S.R. is published today in a White Paper. This agreement was made at the conclusion of discussions in Moscow which, although unexpectedly difficult at times, were always conducted in a fair and friendly spirit. I should like to express my thanks to the four business advisers who were good enough to join our Trade Delegation. Their help was most valuable.

The Agreement provides new opportunities to expand trade in both directions. We expect a substantial increase, beginning in the next 12 months, in our imports of traditional goods from the Soviet Union, although care has been taken not to give any undertakings which might damage our Commonwealth sources of supply. On the other side, the Soviet Government expect to place substantial orders in this country for capital equipment and other industrial goods over and above their customary purchases, involving over the next five years orders to the amount of £600–£700 million. Provision is also made in the Agreement for the development of trade both ways in consumer goods. As a first step, new quotas are to be given to the amount of £2 million on each side. I am confident that the Agreement will benefit the United Kingdom as a whole.

Mr. Hughes

Is the right hon. Gentleman aware that after this he is in danger of being denounced by my hon. Friend the Member for Glasgow, Shettleston (Mr. McGovern) as a "fellow traveller"? Is the right hon. Gentleman satisfied that this increase of trade with Russia will be of permanent advantage to this country? If so, is it not curious that we are spending more than £1,500 million a year to arm against a country which is to be one of our best customers?

Mr. Eccles

I am quite satisfied that an expansion of Anglo-Soviet trade will be good from the economic point of view and also good from the point of view of international relations.

Mr. H. Wilson

Is the right hon. Gentleman aware that we on this side of the House and, I am sure, all hon. Members in all parts of the House very much welcome the conclusion of this agreement? We have, in fact, been pressing the Government for a very long time to enter these negotiations. How soon does the right hon. Gentleman expect to be able to announce the details of this rather small but nevertheless very welcome exchange of trade in consumer goods between the two countries?

Sir D. Eccles

The Soviet authorities agreed 10 have these negotiations here in London and set a time limit of six weeks.

Mr. P. Williams

One point is of great interest to industrialists in this country. Can my right hon. Friend tell the House whether the orders by Russia for British goods will be placed by Government agencies, or whether there is a great deal of discretion to factory managers to choose different British goods and to discriminate between one and another?

Sir D. Eccles

Recently, the Soviet authorities have decentralised to some extent their purchases of foreign goods, but all the organisations are, in fact, part of the Government machinery.

Mr. Allaun

While welcoming this useful agreement, even though it only touches the fringe of the possibilities, may I ask whether the right hon. Gentleman is aware that France is offering quantities of cable to Russia which Britain is not because our officials say that it is embargoed? Does the right lion. Gentleman not think that the time is overdue for ending this strategic list entirely, except for military weapons?

Sir D. Eccles

The problem of this particular inquiry on cable is under consideration by the Cocom Group. The Soviet authorities did not press the view at all strongly that the strategic list now included a lot of goods they would like to import.