USSR (Hansard, 12 May 1980)

HC Deb 12 May 1980 vol 984 cc819-31 819

§ 10. Mr. Chapman
asked the Secretary of State for Trade if he will make a further statement on trade with the Union of Soviet Socialist Republics in response to the Russian invasion of Afghanistan, and with particular reference to the continuing massive imbalance between British exports to and imports from the Union of Soviet Socialist Republics.

§ Mr. Parkinson
The Government's view remains that trade with the Soviet Union should continue to be pursued on the basis of mutual advantage. As my hon. Friend will know, a very large proportion of our imports consists of raw materials valuable to our economy and of goods which are subsequently re-exported at a profit to the United Kingdom.

§ Mr. Chapman
While thanking my hon. Friend for that reply, may I ask whether he is aware that so long as the trade imbalance stands at about the £480 million figure he has given, many people in this country will find it highly offensive that such an imbalance continues in the light of recent political events, not least the Russian invasion of Afghanistan? Will the Government take fresh initiatives to reduce substantially, if not eliminate, that imbalance?

§ Mr. Parkinson
I pointed out earlier to my hon. Friend that a very substantial part of our imports—more than 40 per cent.—are diamonds. Those diamonds are the basis of the London diamond market. A substantial number are re-exported at a good profit for Britain. By doing what my hon. Friend suggests, we would probably be damaging ourselves more than we would be damaging the Soviet Union. I suggest to my hon. Friend that this would not be sensible.

§ Mr. Maclennan
In the light of the Government's attempts to co-ordinate their trade policy in some areas of the world with the United States, have the Government sought an explanation of 820 why the United States is proposing to lift the ban on the export of wheat to the Soviet Union?

§ Mr. Parkinson
It is not true to say that we co-ordinate entirely our actions with those of the Americans. The Americans deal substantially in some products to an extent that we do not. To say that we should try to co-ordinate our trade policy on all fronts, not only Iran, is not sensible. It would produce no gain for us.

§ Mr. Hill
While realising the need to export, is my hon. Friend aware of the impact of his statement on the Olympic and Afghanistan situations, when he praised the GKN contract for a factory in Russia producing heavy lorry bodies that can be used for war purposes?

§ Mr. Parkinson
I am sorry to have to tell my hon. Friend that his facts are not right. The contract was in East Germany for the production of lorries that will be re-exported to third markets other than this one.

§ Mr. Arthur Lewis
Will not the Minister take credit for the truly magnificent way in which the Government took action immediately following the Afghanistan invasion? In answer to a question that I tabled, it was revealed that the Government had stopped importing £1,100 worth of vodka for the Government hospitality fund. Did that not take great courage?