§ 2.48 p.m.
§ LORD SHACKLETONMy Lords, I beg leave to ask the second Question which stands in my name on the Order Paper.
§ [The Question was as follows:
§ To ask Her Majesty's Government whether, in view of the present textile boom and the difficulty of obtaining certain textiles in this country and in the light of the need to help and encourage the people of Hong Kong with their tremendous refugee problem, they will urge the Cotton Board to consider relaxing the quota restrictions voluntarily agreed to by this British Colony.]
§ THE EARL OF DUNDEEMy Lords, Her Majesty's Government fully recognise the need to help and encourage Hong, Kong with its refugee problem, and are aware of the great efforts which the Government and people of the Colony are making to deal with it. The undertaking of the Hong Kong textile industry to limit exports of cotton goods to the United Kingdom was, however, made after negotiations on an inter-industry basis between the Cotton Board and the Hong Kong industry. Modification of the existing arrangements accordingly is a matter which falls to be settled between the two industries. The recent visit to Hong Kong of Lord Rochdale, Chairman of the Cotton Board, provided an opportunity for each side to become acquainted with the other's views about the undertaking and these views are now being considered carefully by all concerned. In these circumstances, I do not think that intervention on the Government's part would be appropriate at the present stage.
§ LORD SHACKLETONMy Lords, does the noble Earl—or Her Majesty's Government—not realise that there is in fact a world textile boom that Lancashire is at the moment unable to meet orders? I know of a particular case of an order that has gone to the United States, an order that would have gone to Hong Kong had it not been for the agreement in regard to finished cloth that Lancashire could not supply. And would not the noble Earl say something 841 a little more encouraging for the people of Hong Kong, who feel very hurt and aggrieved that an agreement made in different circumstances should be so firmly maintained in a totally different situation? May I also ask the noble Earl whether he is aware that in Hong Kong it is generally believed that this agreement was brought about under pressure from Her Majesty's Government in order to ensure a Conservative victory in the last Election? That is frequently said in Hong Kong.
LORD REAMy Lords, before the noble Earl answers, might I ask him whether he is aware that, in view of the very difficult position in Hong Kong, some people in this country are a little doubtful about the amount of voluntariness there was in the agreement? It has never been made particularly clear why this Colony should suddenly and voluntarily have reduced her exports. Could the discussions now going on between the industries be made public in some way?
§ THE EARL OF DUNDEEMy Lords, the agreement was an entirely voluntary one between the Cotton Board here and the Hong Kong industry. There is not the slightest foundation for any idea that it was arrived at under pressure from the Government, still less that any electoral considerations were involved. I had not myself heard this idea, and I am glad to have the opportunity now of contradicting it most emphatically.
§ LORD SHEPHERDMy Lords, whilst it is true that the agreement was finally made between the cotton manufacturers in Hong Kong and the Cotton Board in this country, does the noble Earl not remember that the Government sent out the Permanent Secretary of the Board of Trade to lay the foundations for the discussions before that agreement was made? Would the noble Earl and the Government draw the attention of the Cotton Board to the desire of Her Majesty's Government to liberalise trade and the development of Commonwealth trade, and, I believe, the desire in this country to give aid and assistance, by means of trade, to under-developed countries?
§ THE EARL OF DUNDEEMy Lords, what we want to do is to assist both the Lancashire cotton industry and the 842 Hong Kong industry, and our good offices are always at the disposal of both of them. But the agreement they have made is a voluntary agreement, and any modification must be as a result of discussion between the two industries. I should like to say that the Government most sincerely sympathise with the present difficulties of Hong Kong, particularly in respect of the refugee problem.
§ LORD SHACKLETONI am sorry to press the Minister, but while his denial on political pressure will be noted (though I think, on the whole, not believed in Hong Kong), may I ask him whether the Government could not intervene in a matter which is of real Commonwealth importance, and on which feeling is extremely strong, and whether he would not agree that this is a matter as to which, by wise generosity at this stage, we can in fact gain much for the future?
§ THE EARL OF DUNDEEMy Lords, I am sure that all considerations of that kind are present in the minds both of the Cotton Board and of those with whom they have been negotiating. But, as I said in my original Answer, I do not think intervention on the Government's part would be appropriate at the present stage.