HC Deb 07 February 1996 vol 271 cc324-5
13. Mr. Bill Michie

To ask the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement on his Department's responsibilities for improving Britain's position in the international economy. [12355]

Mr. Hanley

It is a key Foreign and Commonwealth Office long-term objective to promote and protect British economic interests overseas.

Mr. Michie

Does the Minister agree that the proposed Helms-Burton legislation in the United States Congress is totally unacceptable? Will it not have an adverse effect on the British economy on a world scale? Will it not also be an unjustifiable attack on free trade if British companies which want to trade with Cuba are penalised? If the boot were on the other foot, the United States would never tolerate such interference. What are the Government doing about it?

Mr. Hanley

The Government encourage free trade, but there are certain circumstances in which it is right that it should be restricted to encourage reform. The hon. Gentleman's comments will, I am sure, be heard by the Americans.

Mr. Fabricant

Does my right hon. Friend agree that it is important that we strengthen our business ties not only with EU countries, but with Canada, Australia, New Zealand and the United States? Does he agree that that is important because we have not only a common language, but common business practices and a common English legal heritage?

Mr. Hanley

My hon. Friend is absolutely right. Of course we concentrate on our key markets, but not exclusively so. Commercial work by the FCO now involves some 35 per cent. of all our front-line overseas staff. There are 218 commercial posts in 140 markets, and 14 new commercial posts were opened last year, with an extra 100 staff slots for commercial work overseas. I might add that the United Kingdom is succeeding so well that it now attracts 40 per cent. of all inward investment from the United States and Japan. We must be doing something very right.

Ms Quin

Has not the Foreign Office dismally failed to protect the most useful parts of its budget in the recent budgetary settlement? The valuable work in boosting Britain abroad is being undermined by savage cuts in the British Council and the BBC World Service and we have even seen the withdrawal of funding from the Council of Europe's Youth Foundation. Was the failure of the Foreign and Commonwealth Office to protect all that valuable work the result of right-wing dogma or simply incompetence?

Mr. Hanley

No Government are exempt from their duty to make sure that the national economy of the United Kingdom is improving and ever improving.