§ 26. Mr. H. Hyndasked the President of the Board of Trade how many British firms are opening factories in countries of the European Common Market; and what effect this will have on United Kingdom exports.
§ Mr. MaudlingWe do not know how many United Kingdom firms are opening factories in the countries of the European Common Market, and it is not possible to say what effect such developments may have on United Kingdom exports.
§ Mr. HyndThe President may not be aware of the actual number, but surely he is aware that a considerable number of firms are doing this? Is not it a serious thing from the point of view of British employment and exports?
§ Mr. MaudlingIt is hard to judge, but I should say that in many ways when British firms invest in French, German or Italian firms, for example, it is a good thing for the economy and helps our balance of payments. But one of the troubles arising from the absence of agreement between the Six and the Seven is the duplication and waste of investment in Europe, which is one reason why we are so anxious to find solutions for this problem.
§ Mr. WadeIs the right hon. Gentleman aware that British firms considering transferring their factories to the countries of the European Common Market, and foreign firms which are considering switching from the British Isles to Europe will not wait until the British 667 Government have made up their mind whether or not they wish to enter the European Common Market?
§ Mr. MaudlingI have not heard any proposals for any such transfer.