§ 37. Mr. C. Osborneasked the President of the Board of Trade what official discussions have taken place with the Hong Kong Cotton Employers' Association to terminate the United Kingdom-Hong Kong three-year cotton pact, by which imports from Hong Kong to the United Kingdom are limited; what recent views have been expressed to Her Majesty's Government by the Lancashire cotton trade regarding unlimited imports; what communications he has had with the industry; and if he will make a statement.
§ Mr. N. MacphersonThe voluntary undertaking by the Hong Kong industry expires in February, 1962, and I am not aware that any discussions for its termination have taken place. The Lancashire industry has expressed the view that unlimited duty free imports would 22 do grave damage and drastically reduce re-equipment. Lord Rochdale, the Chairman of the Cotton Board, is in close touch with my right hon. Friend on this as on other matters affecting the cotton industry. My right hon. Friend informed him that the Government fully recognise the great importance of this matter both to Lancashire and the Commonwealth countries concerned.
§ Mr. OsborneSince this voluntary agreement will terminate in less than a year's time and since the Government admit that unrestricted imports from Hong Kong would very seriously affect the Lancashire position, surely the Government cannot wash their hands of responsibility? Is my hon. Friend aware that the Hong Kong manufacturers have publicly stated that they have no intention of being bound by this agreement when it ends? Surely the Government should do something now and not wait until February when the crisis will be upon us? Should they not take some action?
§ Mr. MacphersonThe previous agreement was an inter-industry agreement and it is the view of the Government that that is the basis on which any future agreement should be negotiated.
§ Mr. S. SilvermanDoes the hon. Gentleman not remember that more than Hong Kong is concerned in this matter and that the voluntary restrictions on the import of cheap cotton products by India and Pakistan are conditional upon the Hong Kong agreement? Therefore, if the Hong Kong agreement is not renewed or extended a very grave situation is likely to be produced in Lancashire. Many millions of public money spent recently under the Cotton Industry Act in the hope of reviving the industry will have been wasted, so that the last position will be worse than the first.
§ Mr. MacphersonMy right hon. Friend is very keenly aware of the importance of this matter to Lancashire, but he is also aware that the interests and welfare of other Commonwealth countries are involved as well. He considers that this matter is one which should be negotiated between the interests concerned.
§ Mr. OsborneMay I put this to the Minister? This problem is much too big for the trade to handle. Is my hon. 23 Friend aware that last October when I was in Hong Kong the leading spinners told me definitely that they had no intention of being bound by this agreement when it comes to an end in February? Surely the Government should do something now and not allow a crisis to arise next February and find that the industry cannot manage it? Will not he do something now?
§ Mr. MacphersonThe agreement still has ten months to run. This was a matter successfully dealt with between the industries. In spite of very great difficulties, it was previously negotiated with concessions on both sides. My right hon. Friend is by no means despairing of a similar agreement being negotiated.
§ Mr. SilvermanIn view of the devastatingly unsatisfactory answer which the Minister has given, I beg to give notice that I will seek to raise the matter at the first suitable opportunity.