§ 2.37 p.m.
§ LORD BARNBYMy Lords, I beg to ask the Question which stands in my name on the Order Paper.
§ [The Question was as follows:
§ To ask Her Majesty's Government whether they are able to report any progress in securing correction towards this country in the current malpractice of multiple exchange rates for export trade by South American countries, and more particularly Uruguay.]
§ LORD MANCROFTMy Lords, Her Majesty's Government have repeatedly made clear their strong opposition to the use of multiple exchange rates for the artificial stimulation of export trade. They are continuing to take all the action open to them—for example through international organisations like the International Monetary Fund—to secure the abolition of such practices wherever they are operated. Direct representations have also been made to the Uruguayan Government by Her Majesty's commercial representatives in Montevideo and they hope shortly to receive a statement from the Uruguayan authorities on this very important matter. Her Majesty's Government will be happy to consider any further suggestions which the noble Lord may be able to make for additional action which might usefully be taken.
§ LORD BARNBYMy Lords, arising out of that Answer, may I ask the noble Lord, who is always so helpful in making 1110 representations to the Board of Trade in regard to matters which are put forward, whether, should there arise agreement at the O.E.E.C. Conference currently being held in Paris as to what should be done by the countries affected, he would make representations as to how important would be the stimulus that would be given if Her Majesty's Government were to take the lead? The noble Lord will be aware that retaliatory action by the United States brought swift correction of the position there.
§ LORD MANCROFTMy Lords, I will of course make the representations which the noble Lord requires, but I think that O.E.E.C. itself is not really a suitable means of action for discussions of this kind. The main functions of the organisation are clearly to deal with trade relations between the member countries. With regard to the second half of the noble Lord's question, I am well aware of the effect of the action taken by America in this respect, but the taking of retaliatory measures such as America took is an action we have never been very fond of in this country. It is one which I think would at the present time be administratively extremely difficult, and perhaps even undesirable, to work.
§ LORD WILMOT OF SELMESTONAlthough I think the noble Lord is probably right in his latter observations, I hope Her Majesty's Government will find some way of dealing with this problem. It is really very unfair to a wide section of important British export industries.
§ LORD MANCROFTI entirely agree, and if the noble Lord can suggest any means by which we can reinforce our protest I shall be only too happy to listen to him.
§ LORD BARNBYMy Lords, if I may crave the indulgence of the House for one moment, I intended to convey to the noble Lord that O.E.E.C. countries were discussing it. Should they come to an agreement as to what would be the most helpful kind of action, if Her Majesty's Government took action it would be a great stimulus.