HL Deb 24 February 1959 vol 214 cc442-3

2.40 p.m.

VISCOUNT ELIBANK

My 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 it is the case that the preferential trading arrangements now being introduced by the signatories to the Rome Treaty make it more important for this country to develop its trade with countries outside the common market including East Germany, now the fifth industrial State of Europe and one of our foremost competitors in the China market; and, if so, whether they can give an assurance that the first steps recently taken in this direction in relation to East Germany will be followed up with generous facilities for two-way trade.]

THE MINISTER WITHOUT PORT-FOLIO (THE EARL OF DUNDEE)

My Lords, it is important that we develop our trade with all markets. As regards trade with Eastern Germany, if, as a result of the recently concluded unofficial Trade Arrangement, trade in both directions increases satisfactorily, we shall certainly support any efforts the Federation of British Industries may wish to make to increase it still further.

VISCOUNT ELIBANK

My Lords, I thank the noble Earl for that Answer. Would he be good enough to convey to his right honourable friend the President of the Board of Trade that it is no longer appropriate to apply the principle that goods may be imported from East Germany only if they cannot be obtained elsewhere? Further, is it not important, in view of the Common Market arrangements that are now proceeding, that we should endeavour to get trade going again with East Germany on a commercial basis, quite apart from political considerations?

THE EARL OF DUNDEE

Yes, my Lords. As the noble Viscount knows, it is hoped that negotiations about the Free Trade Area may be resumed. That is a long-term question. In the meantime, it does create a short-term problem of increasing our trade with every particular country as much as we can.

VISCOUNT ALEXANDER OF HILLSBOROUGH

My Lords, I did not seem to hear any answer to the question about whether the rule of not getting any goods from East Germany if they can be obtained from somewhere else is in existence and operating.

THE EARL OF DUNDEE

My Lords, I understand that the Trade Agreement covers goods in the course of the next year to the value of about £7 million each way. Of that sum, £2 million is subject to quota, and the remainder comes in under general licences.