§ 2.48 p.m.
§ [The Question was as follows:
§ To ask Her Majesty's Government if they will state what major importing countries have this year taken steps, or announced their intention of taking steps, to restrict imports or payments abroad with a view to improving their balance of trade or balance of payment position.]
§ THE MINISTER WITHOUT PORTFOLIO (THE EARL OF DUNDEE)My Lords, the United States have recently announced measures for reducing purchases abroad by Government agencies and restricting the purchase of foreign goods from funds provided by the International Co-operation Administration. India and the Union of South Africa have increased restrictions on imports with a view to improving their balance of payments. Venezuela has imposed exchange control on capital and current transactions.
LORD HAWKEMy Lords, while thanking my noble friend for his reply, may I ask whether the attention of Her Majesty's Government has been drawn to a leading article in the Financial Times of yesterday, suggesting that central bankers of the world are engaged in doing sums to show the payment position of their respective countries in the most unfavourable light, with the result that a great many countries of the world are going to be able to claim that they have a debit balance with the rest of the world? Is this situation not Gilbertian and dangerous?
§ THE EARL OF DUNDEEMy Lords, I am grateful to my noble friend for drawing my attention to this article, which actually states that it is beginning to look as if nearly all the countries in the world are simultaneously in deficit with each other. I have not quite worked that out yet, but I do not think it arises directly out of the Question. I will certainly look into it, however, and I thank my noble friend for raising the matter.
§ LORD OGMOREMy Lords, may I ask the noble Earl whether his attention has been drawn to the proceedings of the N.A.T.O. Parliamentarians' Conference in Paris a fortnight ago, when representatives of the N.A.T.O. Parliaments called on their Governments to free trade from restriction and try to liberalise it in every possible way?
§ THE EARL OF DUNDEEMy Lords, my attention had not been drawn to that particular matter but a number of countries have relaxed import restrictions during 1960, including Australia, France, Ghana, Malaya, the Federation of Rhodesia and Nyasaland, Sweden and the United Kingdom
LORD HAWKEMy Lords, will Her Majesty's Government make clear to those countries that have recently imposed restrictions that no country could have more reason to justify imposing restrictions than the United Kingdom, but that we have deliberately refrained from doing so because we did not want to re-start the international game of "Beggar my neighbour"?
§ THE EARL OF DUNDEEMy Lords, I believe that my noble friend has correctly given the reason for our action.
§ VISCOUNT ALEXANDER OF HILLSBOROUGHMy Lords, may I ask the noble Earl what steps Her Majesty's Government propose to take in the present state of affairs—and I am thinking especially of the balance of payments —in order to prevent us from simply going on piling up a deficit? At the moment they seem to be letting things drift. What do they propose to do about it?
§ THE EARL OF DUNDEEMy Lords, what we are trying to do is to encourage exports.
§ VISCOUNT ALEXANDER OF HILLSBOROUGHWell, well!