Indonesia

HC Deb 01 December 1980 vol 995 cc6-7

5. Mr. Dormand

asked the Secretary of State for Trade what recent made talks he has had with Indonesia.

The Under-Secretary of State for Trade (Mr. Reginald Eyre)

The Minister for Trade discussed all aspects of bilateral trade with Mr. Sumarlin, the Indonesian Minister of State, last June, and had further discussions with the Indonesian Ambassador in London in October.

In July 1980, the European Commission had, with the support of member States, applied quotas against three categories of Indonesian textiles, in line with the European Community/Indonesian textile agreement. The textile dispute which followed resulted in some United Kingdom companies being told that their bids for Indonesian Government business are not being considered. As a consequence, some business that the companies seemed likely to win has been lost. These consequences are much regretted.

Mr. Dormand

Is the Minister aware of the problems being caused to the firms to which he refers, not least to one in my constituency which has a first-class record of exporting? Will the Minister agree that the Government are using a sledge-hammer to crack a nut in this instance, with serious consequences for the companies concerned? Will he and his right hon. Friend bring greater urgency to bear to solve the problems of these companies?

Mr. Eyre

The hon. Gentleman knows about the difficulties in the textile industries and will have heard the questions put very strongly by his hon. Friends earlier. I can report to the House, however, that further consultations on the textile questions are to take place in Brussels and, secondly, that it is hoped very shortly to have bilateral discussions on the wider issues of the United Kingdom's economic relations with Indonesia.

Mr. Kenneth Carlisle

Will my hon. Friend agree that our experience with Indonesia is a vivid example of what would happen elsewhere if we had a general policy of import control?

Mr. Eyre

My hon. Friend is quite right in drawing the attention of the House to the serious possibility of retaliation in circumstances such as this.