HL Deb 31 October 1957 vol 205 cc679-81

2.35 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 (1) whether there is any legislative authority for quantitative limitations on certain engineering exports to China, or whether these limitations are fixed by the Co-ordinating Committee in Paris under a self-given mandate; (2) whether there is under discussion the possibility of adopting a system of global quotas under which the amounts of these goods exported to China would have to be taken from totals fixed not specifically for China but primarily for Russia and Eastern Europe; and, if so, whether they are aware that failure to differentiate in these matters between China and the Soviet bloc perpetuates China's dependence on Soviet industrial resources.]

THE MINISTER WITHOUT PORTFOLIO (LORD MANCROFT)

My Lords, the limits set from time to time on certain exports from this country to China are fixed by Her Majesty's Government and made effective under the provisions of Section 1 of the Import, Export and Customs Powers (Defence) Act, 1939. We take account of recommendations from the Co-ordinating Committee in Paris, which acts in a purely consultative capacity under a mandate from its constituent Governments. As to the second part of the Question, I think that the noble Viscount is already aware that the discussions which take place in the Co-ordinating Committee we confidential. I am not, therefore, able to disclose the tenor of the Committee's discussions on the subject of future quota arrangements. The overriding consideration is the need for limiting strategic exports.

VISCOUNT ELIBANK

My Lords, I beg to thank the noble Lord for his Answer. May I ask him whether the Government will bear in mind that it would be in the interests of British industry if the detailed application of the Government's policy in this matter were completely under British control? May I further ask him whether the Government will consider the advisability of themselves taking the responsibility in the future of applying the control, on the principle enunciated by the Foreign Secretary on February 15, 1956, that the test should be the extent to which the trade serves the interest of the free world?

LORD MANCROFT

My Lords, I admit that it may possibly be to the advantage of British industry if the course proposed by the noble Viscount were adopted. But this is an alliance and we must keep faith with our Allies. As to the noble Viscount's second supplementary question, while not accepting all the implications involved I can give him an assurance that economic and political factors, as well as the primary strategic one, are considered before Her Majesty's Government decide what action to take on the recommendations of the Co-ordinating Committee.

VISCOUNT ALEXANDER OF HILLSBOROUGH

My Lords, might I ask whether all the Allies concerned in the North Atlantic Treaty Organisation are observing exactly the same practice as the British Government in this matter?

LORD MANCROFT

My Lords, I think our Allies stick to the rules pretty scrupulously in this respect.

VISCOUNT ALEXANDER OF HILLSBOROUGH

My Lords, I asked that question because I think you will find that there is a wider amount of trade going on with some of the other countries than we are permitted to conduct in the present situation. Is it not rather strange that in present circumstances we should have for long periods the German mark taking superiority over sterling in the markets, with a large increase of German trade in China?

LORD MANCROFT

Yes, I quite agree. There have been in the past causes for complaint, and no doubt there will be causes for complaint in the future. But I think that, as leaders in this matter, we should try and keep faithfully to our promises.

VISCOUNT STANSGATE

My Lords, is there any time-limit imposed upon this subjection of our own trade to the partial control of our rival traders?

LORD MANCROFT

Not that I know of.

VISCOUNT ELIBANK

The noble Lord mentioned the point about our being leaders. Is he not aware that the chairman of the Co-ordinating Committee in Paris is a subject of the United States, which country does no export trade with China at all?

LORD MANCROFT

Yes, I am aware of that.

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