§ 13. Mr. Canavanasked the Secretary of State for Foreign and Commonwealth Affairs whether he will make a statement about his meeting with the CBI on 13th January.
Mr. James CallaghanI had a discussion about recent international developments with the President and senior officials of the Confederation of British Industry when they called on me on 13th January. This was the second such meeting with them and was in conformity with the practice I have introduced of inviting the International Committee of the Trades Union Congress and the CBI to discuss international matters with me at intervals.
§ Mr. CanavanUsing his vast experience as Foreign Secretary, will my right hon. Friend point out to the CBI the damage done in many instances by overseas investment by multi-national companies which use those investments simply to exploit cheap sources of foreign labour? Did the recent reports that the Chairman of Vickers might use nationalisation compensation to increase this type of overseas investment not confirm that it is about time we took a much tougher line with these unpatriotic speculators to stop them shifting money out of the country?
Mr. CallaghanI did not discuss the matter with the CBI at the time, but I shall draw the matter to the attention of my right hon. Friend the Secretary of State for Trade. The multi-nationals are a new phenomenon to which Governments have to pay increasing attention. The European Community is paying attention to this matter and I know from my contacts with the TUC that it is also dealing with the subject. It is clear that the boundaries of activities by multi nationals can conflict with member States. When that happens, those activities must be restricted.
§ Mr. Geoffrey FinsbergDoes the Foreign Secretary agree that interference by Governments of all parties since the war in decisions by companies to invest where they think most profitable has in many cases resulted in a loss of jobs?
Mr. CallaghanNo, Sir. I would not agree with that statement. It reflects a simplistic view of the changing face in international affairs of conglomerates and multi-nationals. The longer I stay in this lob, the more I realise that trade is becoming more and more influenced by Governments throughout the world. I sometimes wonder whether we in this country have a system sufficient to meet 415 what we encounter overseas. I have particular thoughts in that direction. I am not being ideological about this matter. It is a practical question of how we deal with overseas trade. This may need new instruments in this country.