HC Deb 12 March 1979 vol 964 cc25-7
22. Mr. Hooley

asked the Secretary of State for Trade what are the views of his Department on the common fund which will be discussed at UNCTAD V.

Mr. John Smith

We hope that further progress towards agreement on the structure of a fund based on international commodity agreements will be achieved before UNCTAD V, in the negotiations which resume today in Geneva.

Mr. Hooley

Does my right hon. Friend agree that it is very much in the interests of Britain to bring stability into international commodity markets? Will he give an assurance that Her Majesty's Government will on this occasion pursue a constructive policy with a view to achieving agreement in UNCTAD V unlike our rather dismal performance in UNCTAD IV?

Mr. Smith

I can confirm our commitment to the establishment of a fund. I have no doubt about the political importance of securing an early agreement. Equally, we must ensure that the fund is set up on a basis that will usefully assist commodity agreements without undermining the financial responsibilities of producers and consumers and without disrupting commodity trade. I hope that we shall be able to bring the negotiations to a conclusion.

Mr. Higgins

The right hon. Gentleman has expressed his hope, but what positive and specific steps is he taking to promote it?

Mr. Smith

I have given positive instructions to those who are representing the United Kingdom at the discussions. There are some complex matters, especially the financial magnitudes involved. If there is a willingness to reach agreement not merely on the part of the United Kingdom but on the part of other countries, I believe that it can be done.

Mr. Spearing

I am pleased that my right hon. Friend has acknowledged the need to make progress. I agree that it would not be appropriate before UNCTAD V to publish the entire negotiating posture of Her Majesty's Government, but will he be able to publish something of the difficulties that he believes have to be solved before this progressive measure may be implemented?

Mr. Smith

I am sure that my hon. Friend will agree that that might be difficult as the negotiations start today. I am always willing to answer the questions that hon. Members table. Where financial negotiations are involved, I believe it wiser to let our negotiators have a freer hand.