HC Deb 14 June 1971 vol 819 cc19-20
20. Mr. Douglas

asked the Secretary of State for Trade and Industry what proportion of United Kingdom exports is now accounted for by United States companies.

Mr. Noble

About 16 per cent.

Mr. Douglas

Will the right hon. Gentleman concede that this figure is likely to increase, and will he give the House the figure of imports by American companies? Might there not in the future be an adverse balance of trade position which would be detrimental if we were to enter the European Economic Community?

Mr. Noble

I do not think that there is any reason to think that these figures are likely greatly to increase. United States firms in this country represent about 12 per cent. of the manufacturing capacity, and, as I told the hon. Gentleman, they are exporting at the rate of 16 per cent. I see no reason why this rather good trend should increase. If the hon. Gentleman wants to know the position about imports, I hope that he will put down a Question.

Mr. Laurance Reed

Although I welcome foreign investment in the United Kingdom, does not my right hon. Friend agree that the degree of our dependence upon United States wholly-owned companies in Great Britain is a matter of concern? Does he not also agree that the best way to reduce this dependence would be for this country to gain access to the Common Market?

Mr. Noble

I have always felt that there was a great deal to be gained, particularly by the development areas, in increasing American investment, and it has been extremely valuable to these areas. In reply to the second part of the supplementary question, if we join the Common Market the investment will be in both directions, and this is probably to the benefit of everybody.

Dr. Gilbert

Surely one of the main reasons for going into the Common Market is to make it more attractive for American firms to invest here, and the inevitable consequence must be an increase in the trend to which my hon. Friend has drawn attention?

Mr. Noble

This has been one aspect of American business over here, but in the past American business has found extremely valuable markets in E.F.T.A. and other countries with which we have special relationships.

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