HC Deb 14 March 1963 vol 673 cc1500-1
3. Mr. Ridley

asked the President of the Board of Trade if he is aware that the United Kingdom has a deficit in trade with Russia; and what progress has been made in the negotiations with Russia for the increase of quotas.

Mr. Erroll

Yes, Sir. The total value of quotas negotiated with Russia has increased by 23 per cent. since the Anglo-Soviet Trade Agreement was signed in 1959.

Mr. Ridley

Has my right hon. Friend heard that the Russians are reputed to be short of oil? To correct the deficit, will he offer to sell them oil as well as ships from this country?

Mr. Erroll

The Russians have made a number of statements regarding the oil situation and we are in touch with them concerning their real intentions.

7. Mr. Harold Davies

asked the President of the Board of Trade what steps Her Majesty's Government are taking in regard to the Russian plan to buy British ships in return for part exchange of Russian oil fuel.

Mr. Erroll

The Soviet authorities are negotiating with several British shipyards at present. One delegation is in Moscow this week. No action by Her Majesty's Government is called for at this stage.

Mr. Davies

Is the right hon. Gentleman aware that the House will be glad to hear that some progress has been made since the last Questions were asked on this matter? Is he further aware that, before the war, 12 per cent. of our oil was Russian oil? Does not he agree that the present world system of oil prices is archaic—it goes back about 50 years when prices were based on Gulf prices—and that it would encourage a drop in world prices if some Russian oil were allowed into this country?

Mr. Erroll

I do not think that the deductions the hon. Gentleman has drawn from his earlier premise necessarily follow. The world oil market is a very competitive one.

Mr. Ridley

Is my right hon. Friend aware that the Russians sell oil to their satellites at greatly inflated prices?

Mr. Davies

So do the Americans.

Mr. Ridley

Will my right hon. Friend recognise that there is a strong body of opinion which regards this as a very dangerous subject?

Mr. Erroll

I am aware of the controversial nature of the issue and I am grateful to my hon. Friend for bringing out this point.