§ 3.31 p.m.
§ [The Question was as follows:
§ To ask Her Majesty's Government whether recent reductions in the embargo on exports have resulted in a considerable increase in business concluded by British firms with China since last August; and whether progress has been as great in the same period as that of our French and West German competitors.]
§ THE MINISTER WITHOUT PORTFOLIO (THE EARL OF DUNDEE)My Lords, the noteworthy increase in our exports to China in recent months has covered a wide variety of goods and there is little evidence in the trade figures so far that much of this increase has been a result of the recent relaxation of the embargo except in the case of some forms of copper. During the months in this period for which the other countries' figures are available our total exports to China were broadly equal in value to those of France, but less than those of Western Germany.
VISCOUNT ELIBANKMy Lords, I am grateful for the noble Earl's Answer, but is he aware that one of the results of the removal of many categories of machine tools from the embargo list in August was an order for Asquiths for £600,000 for boring and milling machines, and an order for David Brown for some £500,000 for turbine gear machines; and that further business is being negotiated? In respect of the last part of my Question may I ask whether the noble Earl is aware that in 1958 France shipped two and a half times, and Western Germany six times, the amount of steel shipped by Great Britain; and is there therefore any reason to doubt that in the last six months of 1958, to which my Question is directed, their figures were better than ours in the same proportions? And ought not these facts to be made public for the benefit of British industry?
§ LORD AILWYNMy Lords, is it not a fact that our trade with China has reached, or is about to reach, the £25 million mark; and, further, is it not a fact that while Western Germany and France apparently show even better results than 1187 the United Kingdom, they have benefited largely from business in steel products which normally goes to, and probably eventually will revert to, Japan?
§ THE EARL OF DUNDEEMy Lords, in reply to the noble Lord, Lord Ailwyn, our exports to China in 1958 totalled £26,700,000. That compares with £12,100,000 for 1957. In reply to the supplementary question of the noble Viscount, Lord Elibank, I understand that most of the business done in 1958 resulted from contacts made during the visit here, in the autumn of 1957 of the Chinese Technical Mission which was arranged by the Sino-British Trade Council. I have given the answer in regard to the comparison with France and West Germany which applies to the total exports. If the noble Viscount wishes to analyse these figures I think he must put down another Question.
VISCOUNT ELIBANKMy Lords may I ask the noble Earl whether he is aware that neither the figures he has now given nor the figures supplied with regard to Japanese trade wipe out the figures which I gave him?
§ VISCOUNT STANSGATEMy 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 whether they can make any statement concerning the reported withdrawal of licences for cotton exports from China and the effect of such action on British trade and industry.]
§ THE EARL OF DUNDEEMy Lords, Her Majesty's Chargé d'Affaires in Peking has been instructed to take this matter up with the Chinese authorities; in the meantime it is too early to assess the effects of the Chinese action on British trade and industry generally. Her Majesty's Government, who have done, and will continue to do, their utmost to encourage Sino-British trade, hope that the Chinese Government will soon make some statement on their export policy which will reassure United Kingdom importers engaged in, or interested in, buying Chinese produce.
§ VISCOUNT STANSGATEMy Lords, would the noble Earl agree that we are not in a very good position to press the Chinese Government, in view of our active participation in the boycott policy?