§ 2.36 p.m.
§ [The Question was as follows:
§ To ask Her Majesty's Government whether—seeing that Richard Fràres and Renault of France are carrying out contracts for the sale to China of 60 h.p. caterpillar tractors and bulldozers, as well as 30 h.p. wheel tractors, to a total value of approximately £900,000, and that deliveries of West German heavy trucks and tractors to China are taking place at an increasing rate—British industrialists are on an equal footing with their Continental and other competitors in the matter of the export, under the exceptions procedure, of engineering goods to China; and whether—bearing in mind (1) the statement of a member of Her Majesty's Government in this House on 28th April, 1953, that "it would be reasonable to say that the restriction upon strategic goods which was put upon China so long as the warlike activities were pursued in Korea cannot possibly be extended to any general overall peace plan stretching far and away beyond Korea", and (2) that so long as the embargo continues China is driven more and more to the Soviet bloc for the capital goods she requires for her industrial plans to the disadvantage of British traders—Her Majesty's Government will initiate steps having in view the rescinding of the 1951 U.N.O. resolution and the ending of the China embargo.]
228THE MINISTER OF STATE FOR FOREIGN AFFAIRS (THE MARQUESS OF READING)My Lords, all applications to export engineering goods to China under the exceptions procedure are examined on their merits, and I can assure the noble Viscount that British industrialists are in general under no disadvantage by comparison with their competitors in other member countries of the Consultative Group. As regards the second part of the question, it is surely very doubtful whether this is the moment to take steps to rescind the United Nations resolution and to end the China embargo. As I told the noble Viscount on December 6, 1955, we must bear in mind that the resolution of the United Nations was not confined to the end of hostilities in Korea. But, as the noble Viscount will be aware, the question of the China Trade Controls is under constant review, and in the meantime Her Majesty's Government will continue to make appropriate use of the exceptions procedure in relation to trade with China.
VISCOUNT ELIBANKMy Lords, I beg to thank the noble Marquess for his Answer. May I ask whether he is aware that the present end-user licensing system leads to many uncertainties and disadvantages for British traders who are attempting to secure orders from China? Is the noble Marquess further aware that it is urgently necessary that British engineering markets should he made less incalculable for buyers of British goods, particularly in view of the enormous requirements under China's second five-year industrialisation plan?
THE MARQUESS OF READINGMy Lords, I do not know that I can add anything useful to what I said in my original answer. I do not accept that British firms are under any unusual disability by reason of being British in this matter. As regards the other part of the noble Viscount's supplementary question, I, of course, realise that there may be a market in China (I am never quite sure that it is as extensive as some people seem to think) but at the same time there are other factors which, certainly at the present moment, have to be taken in consideration.