HC Deb 19 July 1967 vol 750 cc2107-8
41. Mr. David Watkins

asked the President of the Board of Trade what contracts have been gained recently, or are in course of negotiation, to supply British capital equipment to the Soviet motor car industry.

Mr. Jay

I understand that contracts amounting to nearly £20 million for equipment for the Soviet motor vehicle industry have been placed, or are under negotiation, with British firms.

Mr. Watkins

Is my right hon. Friend aware that the Soviet authorities are planning to quadruple their motor car production by 1970 and that, in this connection, they have placed very large contracts in Italy and France? While welcoming my right hon. Friend's reply, may I ask him if he agrees that there is a great potential here for British exports?

Mr. Jay

I entirely agree with the importance of this matter. I have spent a lot of time discussing these issues with the Soviet trade authorities and have put their motor vehicle enterprise in touch with both manufacturers of motor vehicles and components in this country. I believe that orders worth £20 million have already been placed or are under negotiation, and this is quite a good start.

Sir C. Osborne

Is there any difference in the credit terms which we can offer to the Soviet Union as compared with the terms offered by the French and Italians? Is this making any difference to the number of orders we are getting?

Mr. Jay

No, Sir. We have made a particularly favourable offer to the Soviet Union and, as the hon. Gentleman probably knows, it allows orders to aggregate in a single total credit, to put it briefly. I believe that our terms are competitive with, if not better than, those of our rivals.

Mr. Urwin

Can my right hon. Friend make any estimate of how long it will be before such orders are placed with firms based in the northern region?

Mr. Jay

I do not think that the Soviet Union, any more than I, discriminates between the northern and other regions.