Pakistan

HC Deb 24 October 1967 vol 751 cc1488-9

18 and 19. Mr. Pavitt

asked the Secretary of State for Commonwealth Affairs (1) what economic consultations he is having with the Pakistan Government during its preparation of the third five-year plan in order that it can have a realistic appraisal of its trade with Great Britain over that period should Great Britain join the Common Market;

(2) what reply has been sent to the High Commissioner for Pakistan to the aide-memoire he submitted on the effect of Great Britain's entry into the Common Market; and what is his estimate of the amount of compensation which would be required in accordance with the General Agreement on Tariffs and Trade principle concerning the discontinuance of preferences.

Mr. Whitlock

Consultations have taken place with the Government of Pakistan about the British application for membership of the E.E.C., but they were of a confidential nature and I do not think it would be right to disclose what was said. As regards compensation for loss of preferences, I am advised that the General Agreement on Tariffs and Trade confers no rights in this respect.

Mr. Pavitt

I welcome my hon. Friend to his post on the Front Bench. Is he aware that if we join the Common Market, one-third of Pakistan's trade with us will go to the wall by 1970, and it will be no consolation if we give further technical assistance while at the same time destroying that country's economy? Further, is he aware that the only relief in tariffs given by the Common Market so far is on tea, which Pakistan does not export and which Europe does not drink?

Mr. Whitlock

I am grateful to my hon. Friend for his first remarks. The Pakistan five-year plan to which he refers covers the period 1965–70, and it is most unlikely that British entry into the E.E.C. would have any significant effect on Pakistan's trade during that period. My hon. Friend will know that, in the previous negotiations, agreement was reached that, after British entry into the enlarged Community, the Community would declare its willingness to negotiate a comprehensive trade agreement with Pakistan. This is one of the provisional agreements which we hope it will be possible to revive.

Mr. Clark Hutchison

Does not the Minister realise that we are not going into the Common Market?

Mr. Whitlock

That is a personal expression of opinion.