§ 1. Mr. Dewarasked the Minister for Trade if he will make a statement on Her Majesty's Government's policy on sanctions being imposed on British companies by the United States of America.
§ The Minister for Trade (Mr. Peter Rees)Her Majesty's Government regard the recent measures taken by the United States Government against British companies supplying goods for the Siberian gas pipeline as unacceptable. The measures, in our view, constitute an attempt to interfere with pre-existing contracts and to extend United States extraterritorial jurisdiction. It remains Her Majesty's Government's policy to defend our national interest in such cases, while seeking an early solution to our differences with the United States Government along with other European countries affected.
§ Mr. DewarDoes the Minister accept that those who work in the firms that are threatened have a real reason for being irritated when they see their jobs put under stress in this way, and at the same time read of the increased grain trade between the United States and the Soviet Union? Will the hon. and learned Gentleman put the greatest possible pressure on the United States Government to try to moderate their policy in this respect, and also give a guarantee that if, unfortunately, firms such as John Brown and a number of others in Britain suffer as a result of that policy, they will be financially compensated by the British Government?
§ Mr. ReesCertainly in our representations to the United States we have pointed out that while we understand their wish to be tender to the excess production of their Mid-Western farmers, they should also be sensitive to the interests of those who work in our great exporting companies and who are likely to be affected by their sanctions.
§ Mr. Beaumont-DarkThat answer is very welcome to the House. But could not the United States be told that if they were to stop selling grain, we might well consider not selling industrial goods?
§ Mr. ReesI am not certain whether that is an entirely acceptable trade-off, but the connection between the two operations has been clearly perceived on this side of the Atlantic at any rate.
§ Mr. John SmithAs it is widely rumoured that a settlement of this dispute is in the offing, will the Minister make it clear that in future contracts the British Government will not agree to American monitoring and the American veto of British commercial initiatives?
§ Mr. ReesIt would not be Her Majesty's Government's policy to allow the Government of any foreign power, however friendly, to have an ultimate veto over our trading relationships.