HC Deb 12 November 1959 vol 613 cc592-4
44 and 53. Mr. Rankin

asked the President of the Board of Trade (1) why he has decided to discontinue the arrangements for imports from China to the United Kingdom which have facilitated a marked increase in our exports to China over the last three years;

(2) why he has decided to impose disabilities on importers from China which do not apply to importers of similar goods from other countries.

Mr. Erroll

With permission, I will answer these Questions together.

China is now being given the same licensing treatment as other State trading countries in the Sino-Soviet Bloc. The new quotas allow for a further expansion of imports from China.

Mr. Rankin

Mr. Speaker, I did not want these two Questions answered together because in a way they are different Questions. However, I assume that this will enable me to put two supplementary questions. Does the hon. Gentleman realise that by this act he is reducing China from relaxation area status to eastern area status and thereby limiting her exports to this country, in consequence preventing her purchasing the amount of goods that she is at present buying in this country, or even increasing those purchases?

Arising out of Question No. 53, may I ask what is the policy decision inherent in deciding that it is better to buy nuts, say, from Brazil than from China?

Mr. Erroll

China has been transferred to the Soviet bloc for trading purposes because she is a State trading country and, therefore, it is appropriate to treat her as such. About three-quarters of what we import from China will still be free of restrictions, and those items which are now subject to quota restrictions will have quotas in excess of present trading figures, so there is every prospect of a further increase of trade with China.

Mr. Rankin

Against my wish, Mr. Speaker, as I indicated, two Questions were taken together which, in my view, were separate. I put two supplementary questions. What is the answer to the second one about nuts?

Mr. Erroll

Generally speaking, nuts can be imported from those countries from which importers want to buy them.

Sir A. V. Harvey

Is my hon. Friend aware that, under this arrangement, imports of raw silk from China will seriously affect my constituency of Macclesfield and the silk industry? Will he look at this case in particular?

Mr. Erroll

I shall be very glad to look at this again, but I do not think that the position is as serious as my hon. Friend suggests.