HL Deb 03 February 1960 vol 220 cc869-70

2.58 p.m.

VISCOUNT ELIBANK

My 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—

  1. (1) whether representations were received from the trade associations concerned requesting an early increase in the"Board of Trade Notice to Importers No. 921" quota for silk from China;
  2. (2) what increases have so far been made in the quota; and
  3. (3) whether they can give an assurance that the full quota granted is intended to be additional to any amounts importers had contracted to purchase before the present import restrictions were imposed.]

THE MINISTER WITHOUT PORTFOLIO (THE EARL OF DUNDEE)

My Lords, after consultation with the trade interests concerned, it has been decided to increase the quota for Chinese silk piece goods from £250,000 to £380,000 for the current year. In reply to the third part of the Question, licences have been issued to cover firm orders placed before the control was announced, in addition to those issued in respect of the increased quota.

VISCOUNT ELIBANK

My Lords, I thank the noble Earl for his Answer, but does it not show that the original quota of £250,000 was restrictive and totally out of relation to the needs of the trade? Can the noble Earl give us this assurance: that it is not Her Majesty's Government's policy to restrict trade with China?

THE EARL OF DUNDEE

My Lords, it is our policy to increase trade. With regard to the size of the quota fixed in November, since then there has been a rather sudden and unexpected increase in the demand for silk.

VISCOUNT ELIBANK

My Lords, was not that due to pressure put upon the Government by the trade? Is that not the reason the quota was increased?

THE EARL OF DUNDEE

No, my Lords. I do not think there has been any pressure put upon the Government by the trade, but the Government have consulted the trade interests about which the noble Viscount asked in the first part of his Question. The demand for silk to which I referred is a world demand which has increased very rapidly indeed in the last month or two.

LORD BARNBY

My Lords, arising out of that reply, would the noble Earl feel able to give an indication to the House whether the balance of trade with China, after these revised arrangements, will still remain strongly in favour of Britain?

THE EARL OF DUNDEE

I think that is likely to happen, my Lords. The greater part of our trade with China is not restricted. The commodities which are subject to quota are not in fact, a very great proportion of the whole.

LORD BARNBY

I do not want to press the noble Earl, but the general question of trade with China is so important. As he is aware, many representations have been made about it. I raise it because by far the largest export to China is from the West Riding of Yorkshire, and I raise this point on the question of employment. I am sure the noble Earl will see the justification of this point—

SEVERAL NOBLE LORDS: Order, order!

THE EARL OF HOME

My Lords, as I said to the noble Viscount, Lord Stansgate, we must not get into the habit, when answers are given to Questions, of expressing our views on a wider question, or we shall get into debate. I am sorry, but as Leader of the House I must protect its interests.