§ LORD SHEPHERDMy 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 have considered the serious effects to the economy and employment of the Colony of Hong Kong following the closure of the Naval Dock Yard, and the expected restriction of cotton exports to the United Kingdom, brought about through pressure on the industry in Hong Kong, by Her Majesty's Government and the cotton industry of this country, and whether Her Majesty's Government, to compensate for the loss of trade and employment, will now abolish the trade restrictions between Hong Kong and China.]
§ THE MINISTER OF STATE FOR COLONIAL AFFAIRS (THE EARL OF PERTH)My Lords. I can assure the noble Lord that both Her Majesty's Government and the Hong Kong Government are very conscious of the effects of the closure of the Naval Dockyard, and are doing their best to minimise any damage to Hong Kong's economy. I am glad to say that of the 700 workers so far discharged, new jobs have already been found for over 630. There is still a long way to go, but these figures are evidence of considerable effort and achievement.
On a possible scheme by voluntary agreement between the industries for limiting cotton textile exports to this country, negotiations between these industries have not yet started, and noble Lords will not expect me to say anything about their probable outcome. But if such a scheme materializes, careful watch will naturally be kept on the employment situation. I hope that the foregoing will be of some reassurance to the noble Lord.
As regards trade between Hong Kong and China, this is, of course, subject to the same strategic controls as those 1173 operated by the United Kingdom and other N.A.T.O. countries. These controls are now under international review.
§ THE EARL OF HUNTINGDONMy Lords, may I ask Her Majesty's Government whether they realise how important it is, if they wish to stay in Hong Kong, that these controls on trade should be ended? At the moment, they are merely frustrating both to the Chinese Government and to the English traders.
§ LORD SHEPHERDMy Lords, may I thank the noble Earl for his Answer and express our appreciation to the Government of Hong Kong of their successful work in finding employment for the employees who have lost their work through the closure of the Naval Dockyard? May I ask the noble Lord whether he is aware that the traditional trade of Hong Kong, which arises from the fact that the port is an entrepôt between China and the rest of the world, was seriously damaged by the embargo, and that it was only through considerable industrialisation that it was possible to keep the economy of Hong Kong sound and enable it to absorb over one million refugees without any financial assistance either from this country or from the United Nations? May I ask the noble Earl to see that nothing is done by this country, either by the Government or by industry, that could possibly inspire other countries to take action to restrict imports of Hong Kong products?
§ THE EARL OF PERTHMy Lords, first, I would say to the noble Earl, Lord Huntingdon, that we are very much aware of the importance of trying to help Hong Kong in every way. As regards the achievement of Hong Kong in having managed, despite the various prohibitions, to do so well, that is indeed, as the noble Lord, Lord Shepherd, says, something of which we all should be proud. The fact that they should at the same time have taken care of the refugees is a still greater achievement.
§ LORD HENDERSONMy Lords, the noble Earl said that Hong Kong trade was governed by the strategic embargo. 1174 This is a point that we have raised with the noble Lord, Lord Mancroft, several times. Of course, we understand that the embargo is a collective decision, but a collective decision cannot be changed unless somebody takes the initiative. I want to ask whether Her Majesty's Government will take the initiative to get the embargo changed by raising the matter specifically with the other countries who are involved with Her Majesty's Government in enforcing the embargo?
§ THE EARL OF PERTHMy Lords, I do not think that I could accept what the noble Lord, Lord Henderson, said—namely, that Hong Kong trade is governed by the embargo. What we have just heard from the noble Lord, Lord Shepherd, and what I myself have said, shows that Hong Kong has done wonders, regardless of the embargo. On the second point, there is nothing I can add to the fact that these controls are now under international agreement.
§ LORD HENDERSONMy Lords, I understand that. As I have said, they are a collective decision, and they wilt remain a collective decision, operating as they are now, unless there is a change; and there will be no change in the collective decision unless one of the nations in the circle takes the initiative. I would ask the noble Earl whether Her Majesty's Government will take the initiative with her other partners to have the embargo ended.
§ THE EARL OF PERTHMy Lords, I think there is nothing more I can add to what I have said—namely, that we are well aware of the importance of the matter to certain of the Colonies, and at the present moment international review of the situation is being undertaken.
§ LORD HENDERSONMy Lords, the position is most unsatisfactory. The noble Lord, Lord Mancroft, has given us some sympathetic replies, but we want action taken. I should like to give notice that we shall take the opportunity of raising the matter again.