North and South Korea (Hansard, 10 July 1996)

§ 9. Mr. French
To ask the Secretary of State for Foreign and Commonwealth Affairs when and with whom he last had discussions on relations between North and South Korea. [35169]

§ Mr. Rifkind
I discussed this with my Group of Seven-Group of Eight colleagues at the summit in Lyon.

§ Mr. French
As a result of today's announcement, my right hon. and learned Friend will have in mind the enormous importance of South Korean inward investment in the United Kingdom. Does he recognise also the South Koreans' deep desire to establish a more sensible and reasonable working relationship with the North Koreans and to deal with the obstacles that stand in their way? Will he redouble his efforts to ensure that more open dialogue is established with North Korea in the interests of stability in the whole of east Asia?

§ Mr. Rifkind
Our congratulations go to the Welsh Office and to all those who were instrumental in acquiring that massive inward investment from South Korea in the United Kingdom. It is significant that more than 50 per cent. of all Korean investment in the European Union comes to the United Kingdom. That demonstrates the attractiveness of our economy and of the environment that we have created. It proves yet again why unnecessary burdens, such as the social chapter, would only damage this country's well-being.
As to the second aspect of my hon. Friend's question, I agree that dialogue with North Korea can only be helpful. The recent proposals from the United States point in that direction.

§ Mr. Flynn
Although I congratulate all those involved, including the Welsh Office, the Welsh Development Agency and especially the Labour-controlled Newport borough council on its far-sightedness in preparing the site for this gigantic investment, and although the investment is welcome and will have a marvellous effect on my constituency, does the Foreign Secretary recall that Newport is the cwm silicon—the silicon valley—of south Wales, because the British company, INMOS Ltd., set up and prospered in south Wales until it moved from that site to Italy and France, which have both the social chapter and the minimum wage?

§ Mr. Rifkind
That may be so, but the hon. Gentleman knows perfectly well that the bulk of investment in the European Union—whether it is from Korea, the United States, Japan or elsewhere—comes to the United Kingdom. The hon. Gentleman will bear that in mind if he has his constituents' interests at heart.