§ 2.36 p.m.
§ LORD MACDONALD of GWAENYSGORMy 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 if they can give a definite undertaking that at the forthcoming Commonwealth Economic Conference in Montreal the underlying problem of duty-free imports from Commonwealth countries into the United Kingdom, at present affecting in particular the Lancashire cotton industry, will be fully discussed.]
§ THE MINISTER WITHOUT PORTFOLIO (LORD MANCROFT)My Lords, I am afraid that I cannot give any undertaking that we will, at the forthcoming Montreal Conference, discuss our general policy of according duty-free entry to 2 goods from other Commonwealth countries. This is provided for in our trade agreements with these countries and is inherent in the whole structure of Imperial Preference, which brings very important advantages to our export trade. Her Majesty's Government have no intention of varying this policy. As regards the effect of duty-free imports from Commonwealth countries on the Lancashire cotton industry, this is a problem for settlement between the countries concerned and Her Majesty's Government doubt whether there will be much advantage in discussing it at Montreal.
§ LORD MACDONALD of GWAENYSGORMy Lords, I am not too sure that I can express any thanks for that reply. It is rather amazing, especially in view of what was said in another place by the Paymaster General on this very question. He said very clearly [OFFICIAL REPORT, Commons, Vol. 590 (No. 131), col. 1009]:
… I am certain that it is safe to say that anything that affects trade within the Commonwealth is open for discussion at the Conference in Canada in September. Of course, that must be so. We cannot have a conference unless we have it on a no-holds-barred basis. Anything that people want to raise, be it the United Kingdom or any other country, is open to he raised.The noble Lord makes reference to the cotton industry in Lancashire. Is he aware that the cotton industry in Lancashire has been working hard and has for a long while expected negotiations that would bring about a settlement of this matter? That has failed up to now. Could he tell us what are the prospects for these negotiations to bring about some understanding between us and those 3 countries in the Commonwealth whose exports endanger the future of the cotton industry in Lancashire? Will the noble Lord also remember that there are other industries which may meet a similar experience before long, in particular the leather industry?
§ LORD MANCROFTYes, my Lords, I will indeed remember all this. But in this matter the problem of other Commonwealth countries is rather different from ours and it might not, I suggest, be appropriate to discuss the matter at a general Commonwealth Conference. With regard to cotton, the noble Lord will appreciate that Lancashire has reached agreement with the industry in India and has reached agreement with the industry in Pakistan; and the next step, I should have hoped, would be for them to reach agreement with the industry in Hong Kong.
LORD MACDONALD OP GWAENYSGORMy Lords, are we to understand that the leather and other producing industries, which may be in the same position before very long, are to proceed on the same lines as the cotton industry?
§ LORD MANCROFTMy Lords, I do not think that the problem of the leather industry arises out of a question concerned with cotton. That may present a quite different point of view.