§ 5. Mr. Holtasked the President of the Board of Trade what action Her Majesty's Government intend to take on tariffs, following the announcement by the French Government that they will make a unilateral cut in their tariff rates of 5 per cent. to take effect from the 1st April, 1961.
§ Mr. MaudlingNone, Sir.
§ Mr. HoltIs not this a deplorable state of affairs when such a protectionist Government as the French Government are ahead of the British Government in a reduction of tariffs? Will the right hon. Gentleman do something about it?
§ Mr. MaudlingThese reductions which the French Government are making are merely in anticipation of reductions which they will shortly have to make anyway under the Treaty of Rome. The British Government have persistently made it clear that we are anxious in the forthcoming G.A.T.T. negotiations to negotiate substantial tariff reductions, but these, we consider, should be reciprocal.
§ Mr. HoltThe hon. Member recently said that our own tariffs are too high and that British industry would do much better for less protection, and this is precisely why the French are making these cuts early. Why cannot the British Government make unilateral cuts in tariffs?
§ Mr. MaudlingBecause I think that the right way to cut tariffs is by getting reciprocal reductions at the same time so that we can not only increase competition in this country but also increase opportunities.