§ 4. Mr. C. Osborneasked the President of the Board of Trade if he is satisfied that the changes made in Anglo-Chinese trade regulations some months ago are not hindering the expansion of that trade; and if he will make a statement.
§ The President of the Board of Trade (Mr. Reginald Maudling)There is no reason why the present import arrangements should hinder expansion of trade with China since about 75 per cent. of our total imports are admitted freely and quotas for the rest allow generally for a substantial expansion of trade. Moreover, we arranged last April for substantial increases in certain quotas and for licences to be issued against quotas on the basis of firm orders placed with Chinese export corporations. It is the Goverlment's policy to encourage trade with China and we shall continue to administer the arrangements as liberally as possible consistently with national interest. Imports and exports in the first five months of this year were much greater than last year.
§ Mr. OsborneMay I ask my right hon. Friend two questions? First, can he assure the House that there has been no pressure from American sources to reduce this trade? Secondly, can he say what the main reasons are why the trade has not expanded even more than it has done recently?
§ Mr. MaudlingThere is certainly no pressure from American sources to alter our policy. I thought that the trade was expanding very satisfactorily. Speaking from memory, the main difficulty is, on the whole, the shortage of sterling in Chinese hands.
§ Mr. RankinIs it not the case that, were it not for the agreement on restrictions of last November, Chinese trade would today have been greater than it is?
§ Mr. MaudlingThe restrictions on Chinese trade are precisely the same as the restrictions on other State-trading countries. I am sure they are necessary.
220 For example, I do not think the House would contemplate completely free admission of Chinese cotton textiles. We must realise that there are interests in this country to be looked after.