§ 2.37 p.m.
LORD ROCHDALEMy Lords, on behalf of my noble friend, Lord Barnby, I beg to ask the Question which stands in his name on the Order Paper.
§ [The Question was as follows:
§ To ask Her Majesty's Government whether, with regard to official expressions of desire to increase trade with Turkey, which however is currently becoming more difficult owing to exchange problems, together with the tendency for "compensation basis" trading by certain other countries, they are now, in view of the recent advances by the Russian Soviet Government towards a new trade agreement with Turkey, able to indicate any prospect of improvement in climate for trade between the United Kingdom and Turkey.]
§ LORD MANCROFTMy Lords, the Organisation for European Economic Co-operation is at present examining a recent decision by Turkey, taken in the light of her balance of payments difficulties, to reimpose restrictions on imports from the other member countries, including the United Kingdom. Considerable uncertainty exists as to the volume of imports from O.E.E.C. countries which Turkey's new import programme will permit, and as to the provisions for the transfer of exchange in payment for such imports. Until the O.E.E.C. receives the information necessary to formulate its recommendations, it is not possible to predict what the prospects may be for the improvement in conditions for trade with Turkey which naturally Her Majesty's Government earnestly desire. I have no official information about any 350 proposals made by the Soviet Government to Turkey affecting trade relations between the two countries.
LORD ROCHDALEMy Lords, I am grateful to the noble Lord for the carefully-considered reply he has given, and I am sure that my noble friend Lord Barnby also will be grateful. Listening to what the noble Lord said, it seems to me that one of the difficulties is the shortage of foreign currency that Turkey is experiencing. Can the noble Lord say whether there is any way in which Her Majesty's Government can assist in this matter, or has, perhaps, been assisting already, by helping people in this country to purchase more goods from Turkey—possibly, to be more specific, more tobacco?
§ LORD MANCROFTMy Lords, with the exception, I think, of sultanas, all the goods which Turkey is interested in exporting can be imported into this country on private account. Where import licences are necessary these are, generally speaking, readily available. When an unofficial Turkish trade mission visited this country last February, all possible help was given to them by the Government Departments concerned, by means of direct discussions and by putting them in touch with seemingly promising private trading interests. The Ministry of Food undertook to buy an additional 10,000 tons of sultanas from the Turkish 1952 crop, of which so far only 4,500 tons have been supplied. With regard to my noble friend's second supplementary question, I understand that tobacco manufacturers were willing to buy more of the particular types of Turkish tobacco they need than was available for them from the 1952 Turkish crop. Licences are granted freely to enable the trade to import as much Turkish tobacco as they wish, and there are no restrictions on its use. I think the answer to the Question in general is that we in this country have done everything in our power to assist.
EARL JOWETTI saw in the newspapers this morning that there was a considerable possible export of wheat from Turkey. Would it not be possible for the Government to consider whether they could purchase some of that wheat to satisfy our requirements, and at the same time do a good turn to Turkey?
§ LORD MANCROFTI, too, saw that statement in The Times. I think it gives, by and large, an accurate picture. I understand—and I should like to confirm this—that the difficulty about wheat is, first, that prices are really above the economic price, and, secondly, that the wheat crop is not graded, or at least does not maintain a sufficiently even grading to satisfy the English miller. That, I understand, is the chief difficulty at the moment.
LORD HAWKEWill Her Majesty's Government give every encouragement to Turkey and other countries who are in a similar predicament to fix their exchanges on a realistic basis, as they have an opportunity of doing so through their mutual membership of the International Monetary Fund?
§ LORD MANCROFTThat, I think, is getting a little far away from the original Question, but I will certainly look into the point.