HC Deb 12 December 1977 vol 941 cc21-3
23. Mr. Neubert

asked the Secretary of State for Trade what is the United Kingdom balance of trade with China and Japan, respectively, for the last 12 months to date.

Mr. Meacher

Figures on a balance of payments basis for trade with individual countries are not compiled. Our crude trade deficit over the last 12 months up to October was £49 million with China and £593 million with Japan.

Mr. Neubert

Does the Minister have some progress to report on boosting exports to these two countries?

Mr. Meacher

The decline in our exports to China is the result of the completion of past contracts, particularly in aerospace and mining machinery. But I hope that the recent visit of the Chinese Minister of Foreign Trade and the Vice-Minister in charge of the State planning commission will lead to the United Kingdom's becoming a new major source of supply.

In conjunction with the EEC and the United States, we have repeatedly pressed Japan to increase its import of manufactured goods from the West. I understand that the new Japanese Cabinet has now agreed a package of advance purchases and administrative measures in advance of action on the multilateral trade negotiations, for which I am hopeful.

Mr. Lipton

Will my hon. Friend bring his influence to bear upon his colleagues in the Department of Industry and let them know that the balance of trade between this country and Japan would be vastly improved if Japanese industrialists were encouraged to come to this country to invest, establish factories here and export goods to Japan?

Mr. Meacher

We certainly make efforts in that direction, as my hon. Friend knows. We welcome more visits from Japanese business men and we also look to their doing their part to increase their trade by buying from us.

Mr. Ridsdale

Is the Minister aware that, if we wish to do something about the adverse balance of trade with Japan, we must do something more to improve the climate to encourage investment in this country? Is he further aware that a great deal of the adverse criticism that has come from many people has turned away important Japanese investment in this country, which will be adverse to us?

Mr. Meacher

Despite the recent case in respect of Hitachi, I fully expect the Japanese to continue to take a close interest in this country, particularly because of the low wages in Britain.

Mr. MacFarquhar

My hon. Friend mentioned aerospace. Can he deny allegations that negotiations of some kind for the sale of Harriers which were going ahead under the previous Government have slowed to a standstill under the present Government?

Mr. Meacher

I have no such knowledge.