HC Deb 19 December 1973 vol 866 cc1325-6
5. Mr. Sydney Chapman

asked the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement on the talks he had in Moscow with the Soviet leaders, with particular reference to removing the imbalance in trade between the United Kingdom and USSR.

Sir Alec Douglas-Home

My visit to the Soviet Union marked a considerable advance in Anglo-Soviet relations. Our talks, which were cordial throughout, among many other subjects covered the imbalance of trade and the disparity of Western and Warsaw Pact forces, especially in Central Europe. We hope to sign a long-term economic co-operation agreement next year. As far as force levels are concerned, there are still important differences between the two sides at the Vienna talks, but we agreed to persevere in the search for a solution.

Mr. Chapman

I am grateful to my right hon. Friend for that reply, but does not he agree that there has been an unnecessary imbalance of trade between the USSR and the United Kingdom for a number of years? As we currently sell less than £100 million worth of our goods and services to the USSR each year and it sells over £200 million worth of goods to us, is not it about time this gap was narrowed? In view of the balance of payments deficit, is it not right to say that we should import less from the USSR?

Sir Alec Douglas-Home

I do not think that we want to try to be restrictive. We want to increase the trade between out two countries. But I made it very clear, of course, that the imbalance should be corrected, and the Russians agreed to try to do that. A number of quite large contracts are now being considered, and they could make a considerable difference to the picture if they are awarded.

Mr. Jay

Is the Foreign and Commonwealth Secretary aware that our trade deficit with the Soviet Union is about one-tenth of our deficit with the EEC?

Sir Alec Douglas-Home

That may be so, but I have never thought that statistics necessarily prove very much.

Mr. Goodhew

Did my right hon. Friend make it clear to the Soviet leaders that Anglo-Soviet relations would be greatly improved by the cessation of the supply of Soviet arms to the IRA in Ulster?

Sir Alec Douglas-Home

Yes, Sir. I have made that point to the Soviet Union before. I think that it is not necessary to make it again.

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