HC Deb 03 February 1972 vol 830 cc666-8
Q1. Mr. Douglas

asked the Prime Minister if he will make arrangements to attend the United Nations Conference on Trade and Development in April, 1972.

The Prime Minister (Mr. Edward Heath)

I have no plans to do so, Sir.

Mr. Douglas

Will the Prime Minister accept the element of regret that I detect in that reply? Will he accept, further, that a major topic at the conference is likely to be the failure of the recently negotiated international monetary package to solve the problems of international trade and the needs of the developing countries?

The Prime Minister

I appreciate the implication of the hon. Gentleman's remarks. It is not customary for Heads of Government to attend U.N.C.T.A.D. conferences. I attended the first one as Secretary of State. The second one, during the term of office of the party opposite, was attended by the President of the Board of Trade. My right hon. Friend the Minister for Trade will be representing this country at Ministerial level at the forthcoming conference.

As for the main topics of discussion, certainly those aspects of the present monetary situation which affect the developing world will be very much under examination. The purpose of the last Washington conference of the Group of Ten was not specifically to deal with the problems of the developing world but to get an arrangement amongst the major industrial countries on their parities. At the same time those countries undertook the obligation to work for the reform of the international monetary system.

Mr. Tapsell

Has my right hon. Friend noted the disturbing indications that the world may be heading for another international monetary crisis? Will he use all his influence to try to persuade other Governments not to deal with this by raising tariffs and getting back into a trade war?

The Prime Minister

That is our own approach and we shall use our influence to that end. The point that my hon. Friend raises is not directly a matter for the next U.N.C.T.A.D. conference.

Mr. Roy Jenkins

Following the Prime Minister's reply to my hon. Friend the Member for East Stirlingshire (Mr. Douglas), may I ask whether the right hon. Gentleman does not agree that any period of stability following the December Washington agreement on parities shows signs of being peculiarly short-lived? What plans have the Goverment to deal with the menacing situation which is developing?

Will the Prime Minister also bear in mind the growing concern throughout the developing world that monetary questions are settled too much by a small group of developed countries without the voices of developing countries being heard?

The Prime Minister

I appreciate the validity of the point that the right hon. Gentleman makes in the latter part of his supplementary question. It is true that feelings amongst the developing world are quite strong on this matter. On the other hand, the right hon. Gentleman knows from experience the difficulty of getting agreement between even the Group of Ten on major questions, especially at a time of difficulty in international monetary relations. To have a much larger group which included the developing world to deal with these specific problems would produce difficulties that one could hardly hope to overcome. But as to the long-term problems I agree that the interests of the developing countries must be taken into account. I think that many would like to see them fully represented in discussions.

Mr. Jenkins

Will the Prime Minister answer the question concerning parities?

The Prime Minister

I would not like to comment on that today. It is possible to draw conclusions, as the right hon. Gentleman has done, but it is after all only a short time ago that many were arguing that the level of parities fixed was too high to produce a stable situation. Now the argument is exactly the reverse and there are dangers in it.