HL Deb 20 January 1954 vol 185 cc297-9

2.43 p.m.

VISCOUNT ELIBANK

My Lords, I beg to ask the first Question which stands in my name on the Order Paper.

[The Question was as follows:

To ask Her Majesty's Government whether they are aware that under an agreement based on the Sino-Japanese Trade Agreement of June 1, 1952, the classified list of exports from Japan to China includes copper, aluminium ingots, steel plates, steel pipes and tubes, tin plates, black steel sheets, galvanised iron sheets, steel drum sheets, structural steel materials, railway equipment, heavy machinery, ocean-going vessels, cranes, ball bearings and trucks; and whether British traders have been, or will be granted licences to export commodities of similar nature to China.]

LORD MANCROFT

My Lords, the Agreement to which the noble Lord refers was concluded in October last year, and was a purely private arrangement reached between an unofficial Japanese delegation and the Chinese authorities. It was thus similar to the arrangement made in Pekin in July, 1953, between the Chinese and a group of British businessmen, and is similarly subject to Governmental controls. Her Majesty's Government have been assured by the Japanese Government that its conclusion in no way affects the operation of their controls on strategic trade with China. These controls are similar to our own, and involve an embargo on the export to China of strategic commodities within these categories under the United Nations Resolution of May, 1951.

VISCOUNT ELIBANK

My Lords, while thanking the noble Lord for his reply, may I take it that no materials of the nature indicated in my Question are passing between Japan and China?

LORD MANCROFT

My Lords, to the, best of our knowledge and belief, that is so

2.45 p.m.

VISCOUNT ELIBANK

My Lords, I beg to ask the second Question which stands in my name on the Order Paper.

[The Question was as follows:

To ask Her Majesty's Government whether, in view of the urgent necessity in the interests of the British economy to increase exports; of the improbability that American tariffs will be reduced; and of the unlikelihood of hostilities again breaking out in Korea, they will consider the advisability of initiating such steps as will lead to unrestricted trade between the United Kingdom, Hong Kong and other Crown Colonies on the one hand, and China on the other.]

LORD MANCROFT

My Lords, we all agree with the noble Viscount as to the urgent need to increase our exports. But the embargo on strategic exports to China is applied in discharge of our obligations under the United Nations Resolution of May, 1951; and, in the view of Her Majesty's Government, reconsideration of the embargo, in concert with the other members of the United Nations, must depend on the more favourable development of events in the Far East. As your Lordships are only too well aware, our hopes that the Korean armistice would lead to more normal conditions have unfortunately not so far been fulfilled.

VISCOUNT ELIBANK

My Lords, while thanking the noble Lord for his reply, I should like to ask whether he is aware that during the year 1952, the trade of Hong Kong fell from £100 million sterling to £26 million sterling, and that Hong Kong traders are watching a process under which trade with China is being taken away from them by their competitors. As I suggest in my Question, I should also like to ask Her Majesty's Government to take the earliest possible steps to initiate some efforts that will lead to unrestricted trade between the United Kingdom and China.

LORD MANCROFT

My Lords, as to the first supplementary question of the noble Viscount, we are all only too well aware of the handicaps under which Hong Kong labours, as a result of her loyal observance of this Agreement. Hong Kong is as hard hit as anyone, and I think we owe the traders and merchants of Hong Kong our thanks for the loyal and uncomplaining way in which they are labouring under this disadvantage. With regard to the second half of the noble Viscount's supplementary question, I would only add that this is a matter of acting in concert with our friends, and we are all anxiously awaiting the moment at which some change can be made. Unfortunately, that moment of time does not seem to have arrived yet.

VISCOUNT ALEXANDER OF HILLS-BOROUGH

My Lords, I am interested in the noble Lord's reply, and before the matter is closed may I ask this question? Is it not a fact that the United States Assistant Secretary has made a public pronouncement—I think to a Press conference—that in the course of the coming year they are going to move to expand their present trade with the Eastern countries? I had rather hoped that the noble Lord might have been able to say a little more than he has to-day about the promise in that direction, seeing that in the past there have been many American objections even to the amount of trade which we have been doing.

LORD MANCROFT

I believe there has been some pronouncement recently from American sources, but I should not like to answer the last question categorically without further notice.

LORD VANSITTART

My Lords, in considering this question should we not be wise to remember that the Chinese are still supporting the war in Indo-China, and that any suggestion for going so far as unrestricted trade might produce undesirable reactions in France, particularly at this delicate juncture?

LORD MANCROFT

That was precisely the difficulty which I was trying to underline.