HL Deb 26 May 1948 vol 155 cc1031-3

3.23 p.m.

LORD BROUGHSHANE

My Lords, I beg leave to ask the question standing in my name on the Order Paper.

[The question was as follows:

To ask His Majesty's Government, whether, in view of doubts which have recently been expressed, they will give an assurance that no agreement with America or any other foreign country will be ratified which in any way restricts the freedom of Great Britain to enter into tariff or other arrangements with any Dominion or Colony; and will the Government undertake that most-favoured-nation arrangements shall not apply within the British Commonwealth and Empire.]

THE FIRST LORD OF THE ADMIRALTY (VISCOUNT HALL)

My Lords, I presume that the noble Lord has in mind the General Agreement on Tariffs and Trade negotiated at Geneva last year, and the Charter of the International Trade Organisation drawn up at Havana by the International Conference on Trade and Employment. Both these agreements provide for most-favoured-nation treatment between the countries parties to them, but there is an exception for pre-existing preferences, including preferences within the British Commonwealth. The preferences saved in this way are subject to any modifications resulting from negotiations between the parties to the agreements. These negotiations were designed to bring about the reduction of tariffs and the reduction or elimination of preferences on a reciprocal and mutually advantageous basis. The agreements also provide that, subject to certain possible exceptions, existing preferences shall not be increased and no new preferences shall be introduced.

The General Agreement on Tariffs and Trade incorporates extensive lists of reductions of tariffs and preferences resulting from the negotiations held at Geneva last year between the participant countries. It has not yet been brought finally into force, but has been applied provisionally from January 1 last between certain countries, including the United Kingdom, the United States of America, Canada and Australia. The Havana Charter is not in force, pending its acceptance by a prescribed number of Governments. Before His Majesty's Government take steps to accept the General Agreement finally, or to accept the Havana Charter, there will be opportunity for Parliament to debate those instruments.

LORD BROUGHSHANE

My Lords, I am sorry that the Government do not see their way to reply to my question whether they will give an assurance that no agreement with a foreign Power will be ratified which in any way restricts the freedom of Great Britain to enter into tariff or other arrangements with any Dominion or Colony. That is a very simple question and I should have thought it could be answered in a simple way. The rather long reply of the Government still leaves one in doubt as to the precise scope of the arrangements that have been made, especially as the noble Viscount says that no new preferences will be subsequently introduced. We are precluded from entering into any arrangements we think fit to make with any Dominion or Colony. The point of the question is—

VISCOUNT HALL

My Lords, I intervene with some reluctance, but I am advised that the noble Lord is entirely out of order in speaking on this matter. He is in order to put a supplementary question, but I think his statement has gone far beyond that.

LORD BROUGHSHANE

My Lords, I thought my remarks were a supplementary question regarding the noble Viscount's statement that no new preferences will be entered into. That seems to me to be in contradiction to the assurance I asked for in my question, that any arrangements made between Great Britain and her Dominions and Colonies shall not be affected in any way by arrangements made between Great Britain and a foreign Power.

VISCOUNT SWINTON

My Lords, arising out of that question, is it not clear that the answer of the First Lord of the Admiralty confirms the undertaking given by the noble Viscount the Leader of the House on a previous occasion, that whatever may be the contents of the Draft Havana Charter and the Geneva Agreement, no ratification can take place until both those instruments have been brought before Parliament and approved?

VISCOUNT HALL

That is so. It is the intention of His Majesty's Government to bring the matter before Parliament for approval, before ratification.