§ 11. Sir C. Osborneasked the Chancellor of the Exchequer, in view of the increasing number of take-over bids by United States concerns of British companies, if he will give an assurance that he will refuse Treasury sanction in future, except in most exceptional cases, with a view to preventing the British economy from becoming a subsidiary of United States capital, primarily conditioned according to United States needs; and if he will make a statement.
§ Mr. CallaghanOur general policy is to welcome inward investment in this country by United States and other foreign countries. Cases involving the takeover of existing companies which by their size or their nature constitute a vital part of British industry are considered on their merits.
§ Sir C. OsborneDoes the right hon. Gentleman recall the occasion, ten years ago, when both he and the present Prime Minister protested vehemently against the take-over of Trinidad Oil and the use of capital as revenue, especially as a defence against possible deflation? Is not the situation similar today? Will he prevent the use of British capital today for Revenue purposes?
§ Mr. CallaghanWe have to look at all these cases individually from the point of view of the effect on our economy. In some cases it would not be advantageous and in others it would. We must take decisions according to the value we see in each case.
§ Mr. WoodburnIs my right hon. Friend aware that this attack on the United States is ludicrous in view of the fact that over 100 years ago two of our biggest employers with two of the most 1197 successful companies here came from the United States?
§ Mr. CallaghanI agree that the mutual interchange of knowledge through foreign investment can be valuable to all countries, and this country has a substantial stake in the United States in this direction.