§ Q2. Mr. Stonehouseasked the Prime Minister what decisions were made by the Commonwealth Prime Ministers with regard to the expansion of Commonwealth trade.
§ The Prime MinisterAt the Commonwealth Prime Ministers Meeting we made a thorough review of the world economic situation, with particular reference to Commonwealth problems and needs. The communiqué, which was circulated in the OFFICIAL REPORT on 16th July, makes it clear that there was agreement on many points important for the expansion of trade and for Commonwealth co-operation to this end.
§ Mr. StonehouseIs it not important to maintain our share of this important trade? Is the Prime Minister aware that during the 13 years of Conservative rule, the United Kingdom's share of Commonwealth trade has dropped from 25 per cent. to 19 per cent. and that if our exports to the Commonwealth had gone up at the same rate as the increase in total Commonwealth imports, we would this year be exporting £375 million more than we are doing? Does not this single fact show to the Prime Minister that his economic priorities, as well as his moral priorities, are completely misplaced in pursuing the Spanish arms deal? Is he further aware that information has come to light today showing that an important Indian order for a chemical factory from I.C.I., about which negotiations began 14 months ago, has been held up for six months as a result of Ministerial fumbling? What will the Prime Minister do about this?
§ The Prime MinisterI do not think that the hon. Member or anybody else who looks at the figures of trade and aid to India and the way we try to help could really fault us in this respect. We have given an enormous amount of aid, military and otherwise, to India, particularly to help her in her difficulties with the Chinese. Of course, as the hon. Member has said, the percentage of exports has fallen. My figures are from 36 per cent. in 1959 to 30 per cent. in 1963. But, of course—
§ Mr. W. HamiltonWhy 1959?
§ The Prime MinisterThe hon. Member for Wednesbury (Mr. Stonehouse) has taken one set of figures; I am taking another. There is no dispute that the percentage has fallen, and there are a number of reasons for this. Some non-Commonwealth markets, especially in Western Europe, have been expanding more quickly than those of the Common-weath. Newly independent Commonwealth countries are exploring alternative sources of supply. Our own agricultural production has risen very fast and industrialisation in the Commonwealth countries themselves means that they are now making goods which formerly we exported. Of course, we must make every effort to increase inter-Commonwealth trade—that is common to us all—but it is not very surprising that there has been a fall in this proportion.
§ Mr. P. WilliamsWould my right hon. Friend agree that the important thing is to increase our efforts to stimulate Commonwealth trade, first for the merits of that itself, and secondly to enable Commonwealth countries to explore the other markets about which he has just been talking? Would he further agree that one of the most important things which can be done for the developing members of the Commonwealth is to come to some form of an agreement on stabilisation of commodity prices to ensure that they earn foreign currency with which they can buy our finished products?
§ The Prime MinisterYes, Sir. This is one of the things to which we gave our support at the Geneva Conference, which we are following up with other members of the Commonwealth.
Mr. H. WilsonIs the right hon. Gentleman aware that the figures which 685 he has quoted, which recently appeared in the Treasury Bulletin, show that between 1959 and 1963 there was a fall from 36 to 32 per cent. in the imports from the Commonwealth and from 36 to 30 per cent. in our exports to the Commonwealth? Having regard to all the difficulties that he mentioned, as Commonwealth imports from the outside world and other Commonwealth countries have been rising quite remarkably particularly so far as manufactured goods are concerned, is he really satisfied with the effort made either by the Government or by our exporters in holding a fair share of that market? If Germany, Japan and the United States could export manufactured goods to these Commonwealth countries between 1959 and 1963 as they have done, will he say why we could not?
§ The Prime MinisterI am never satisfied with the position, obviously, but I hope that the new National Export Council, to which my right hon. Friend referred the other day, which will deal with Commonwealth countries either individually or by areas, will assist our exports, which I think is the right hon. Gentleman's desire. At the Commonwealth Prime Ministers' conference every Commonwealth country desired to take the fullest advantage that it possibly could of the expansion in world trade, and, therefore, they did not want any restrictive arrangements in the Commonwealth itself.
Mr. WilsonSince some of us have been pressing for this without any hope from the Government for 12 years, we have the right to put these questions now.
May I ask the right hon. Gentleman whether he does not feel that, in addition to the very valuable discussion at the Commonwealth Prime Ministers' conference and elsewhere about world trade, in which both we and the Commonwealth have an interest, it would have been a good idea to have spent a considerable time there, or at the trade conference of Commonwealth Ministers which we suggested last year, discussing mutual arrangements on a bilateral basis 686 between Britain and each Commonwealth country for the granting of preferences in the award of contracts by Commonwealth countries to Britain and for us to have given some assured and guaranteed markets for Commonwealth primary produce here? Could we not have had a little time devoted to that either at the Commonwealth Prime Ministers' conference or at a trade conference? [Interruption.] This is not ruled out by G.A.T.T. The Secretary of State for Industry and Trade does not understand.
§ The Prime MinisterI shall be very surprised if my right hon. Friend the Secretary of States does not understand. The right hon. Gentleman must remember that throughout the year there are meetings; the finance officials meet at least twice a year, and the Finance Ministers meet twice a year. So the questions that he has raised are constantly reviewed by the Finance Ministers of the Commonwealth countries.
§ Mr. HastingsIs it not the direct interest of this country and of all the Commonwealth countries that they should diversify their trade in other countries outside the Commonwealth, and is this not precisely what is happening?
§ The Prime MinisterYes, Sir; that is true. This is what I meant when I said—[Laughter.]—I do not know why hon. Members opposite seem to find this funny—that the Commonwealth Prime Ministers at their meeting did not want to see an exclusively Commonwealth club. They wanted the widest trade possible.