HC Deb 25 April 1961 vol 639 cc215-7
17. Mr. Gresham Cooke

asked the President of the Board of Trade if, in view of the continuing importance of earning foreign currency, he will ask the United States Government to reopen facilities, now closed, for British cars to be sold on United States bases and for United States Service personnel to retain British cars for more than a year free of Purchase Tax prior to export.

Mr. Erroll

I would refer my hon. Friend to the reply which I gave to my hon. and learned Friend the Member for Warwick and Leamington (Mr. Hobson) on 18th April.

Mr. Gresham Cooke

When my hon. Friend is making representations to the American authorities on this subject, will he bear in mind that traders have been earning about £1½ million worth of dollars a year by selling cars to the Americans? Will he point out to the Americans that it is rather unfair that only American cars can be sold on these bases and that that is contrary to the spirit of the message of President Kennedy to Congress when he said, "Protectionism is no answer to our problems"?

Mr. Erroll

The United States Government have not imposed a direct ban on the purchase of British cars by United States Service men. My right hon. Friend has made known to the United States Government his concern about the matter.

Mr. Bullard

Was there any consultation between the American and British Governments before this ban was instituted—I know that it is not an absolute ban—on the sale of British cars through the PX? Is not this an arbitrary action and should there not have been consultation?

Mr. Erroll

There was no consultation, but we were informed of the decision.