HC Deb 27 July 1961 vol 645 cc595-6
33. Sir C. Osborne

asked the President of the Board of Trade what progress he has made in his talks with M. Patolichev, Russia's Minister of Foreign Trade, for the increase of Anglo-Soviet trade; since the Union of Soviet Socialist Republics enjoys a substantial favourable trade balance, what proposals they have made for reducing it by purchasing more British consumer goods; and if he will make a statement.

Mr. Maudling

I had useful informal talks with Mr. Patolichev during his recent visit to this country. We considered further the proposals for the expansion of Anglo-Soviet trade which had been put forward by each side during the discussions held in Moscow at the time of the British Trade Fair.

The detailed arrangements for trade in consumer goods during 1962 will not be negotiated until the autumn. However, as I told my hon. Friend on 8th June, it has been agreed that the aim should be to double the total value of the existing quotas on both sides.

Sir C. Osborne

I wish my right hon. Friend good luck in his endeavour to double the trade both ways between Russia and this country. Will he bear in mind that last year we bought from Russia £75 million worth of goods but that they purchased only £53 million worth from us? Ought not that gap of £21 million to be filled with British consumer goods? We have the goods ready to export which they would like to have. Will my right hon. Friend press that point of view?

Mr. Maudling

I am glad to say that the balance greatly improved in the first half of 1961. We must also remember that Russia spends large sums of money in the sterling area on sterling area raw materials. They are in fact buyers of sterling, and we must take that into account.

Sir C. Osborne

But when they buy raw materials from the Commonwealth that does not provide employment in this country. Are not we entitled to ask that a larger proportion of the sterling they earn by selling here should be spent on goods made in this country and so provide work for our people? Will my right hon. Friend look at this matter again?

Mr. Maudling

I agree, and I am glad to say that that has been happening. In the first half of this year British imports were down compared with last year and British exports were substantially up.