§ 2.35 p.m.
VISCOUNT ELIBANKMy Lords, I beg leave to ask the Question which stands in my name on the Order Paper.
§ [The Question was as follows:
§ To ask Her Majesty's Government whether, seeing that (1) trade with China has ceased to expand this year largely because the volume of imports has remained static, and (2) Her Majesty's Government have expressed their desire for an expansion of this trade, they will say what steps they are taking to enable China to increase her earnings of sterling here, thus assisting her to place a larger proportion of her earnings with British firms.]
§ THE PAYMASTER GENERAL (LORD MILLS)My Lords, United Kingdom trade with China so far this year has shown a small decline, but this is more marked in the case of our exports than our imports. The Government's arrangements for regulating imports provide for about four-fifths of our total imports from China to be admitted free of any quota limit and the quotas fixed for the rest of the trade allow for a general expansion. These arrangements thus provide scope for China to increase her earnings of sterling here.
VISCOUNT ELIBANKMy Lords, I thank the noble Lord. Is he aware that the Common Market countries are increasing their imports from China, which is affecting their position as sellers; and is this not a very perilous moment, therefore, for us to check our imports from China?
§ LORD MILLSMy Lords, I am quite aware of the situation in regard to other European trade with China. Perhaps the noble Viscount is also aware that there has been a very considerable increase in our trade with China, and I hope that the present figures, which show a small decline, are showing only a temporary decline.
LORD HAWKEMy Lords, would my noble friend the Minister tell me what products can be imported from China which are not equally well obtainable in the Commonwealth or from friendly Western countries?
§ LORD MILLSMy Lords, I think that the products which we take from China are suitably adaptable to our needs. Having examined the list of what we take from China, I think there is also scope for expansion of our imports from China, and, it is to be hoped, of our exports to China, too.
VISCOUNT ELIBANKMy Lords, is it not the case that Questions from both sides of both Houses of Parliament and letters in the Press from very prominent industrialists show great anxiety at this check in the imports from China?
§ LORD MILLSMy Lords, I have already said that imports show quite a small reduction this year compared with those for last year. It is not so very long ago since the noble Viscount was asking Questions which were aimed at congratulating the Government upon their increase in trade with China.