HL Deb 23 February 1960 vol 221 cc198-200
LORD SHEPHERD

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—

  1. (1) to state the reasons for limiting imports to the United Kingdom of silk grey cloth from China (Board of Trade Notice to Importers 921);
  2. (2) whether they have evidence that this action has had adverse effect on our export trade with China, and
  3. (3) whether they are aware that the present quota limit of £380,000 is inadequate to meet the requirements of the United Kingdom textile industry, with special respect to exports of processed silk dress fabrics.]

THE MINISTER WITHOUT PORTFOLIO (THE EARL OF DUNDEE)

My Lords, imports of silk grey cloth are subject to import control from the countries of the Soviet bloc and Japan. When the licensing arrangements for China were put on the same basis as those for the countries of the Soviet bloc, silk grey cloth became automatically subject to control. The answer to the second part of the noble Lord's Question is in the negative. As regards the third part of the Question, I have no reason to believe that the amounts to be imported under the quota, together with the amounts licensed to cover outstanding orders and supplies from other sources, are inadequate to meet the needs of the United Kingdom textile industry. There are no restrictions on imports of silk grey cloth required for the re-export trade.

LORD SHEPHERD

My Lords, I thank the noble Earl for his full Answer, but is he aware that applications for Chinese silk have been made to the Board of Trade, as I know, from two well-known print houses in this country, and that they have not been given any quota because they had no past performance? Is the noble Earl aware that these two particular firms are making for stock of which a large percentage goes for export, and that they are facing very severe competition from countries like Italy and France?

THE EARL OF DUNDEE

My Lords, we have no concrete evidence of adverse effects of these regulations on exports to China. If the noble Lord has any case which he wishes to be considered, I should be most grateful if he would send it to the Board of Trade, because they are ready to consider sympathetically, with trade organisations and authorities, any difficulties which may arise in practice. The recent increase in the quota, as I have told your Lordships before, was made after consultation with the trade interests.

LORD SHEPHERD

My Lords, I thank the noble Earl for his answer.

VISCOUNT ELIBANK

My Lords, may I ask the noble Earl whether he is aware that in the first part of his Answer to the noble Lord who has just sat down he gave no reason whatsoever for taking China out of the relaxation area originally and putting her into the Eastern bloc? Perhaps the noble Earl can give an answer to that question. Further, may I ask the noble Earl whether he is aware that there are firms who have come into this business and who require and are asking for licences but who still have not got them? Will the noble Earl see to it that they do get the licences for which they are asking?

THE EARL OF DUNDEE

My Lords, in reply to the first part of the noble Viscount's question, the reasons for having these restrictions in dealing with countries in the Soviet bloc are that State-trading countries cannot reciprocate our methods of allowing traders to import freely, and it would be illogical to put China on a different basis from countries which pursue State trading. That is the reason why China was brought into line with other countries who are State traders. The second part of the noble Viscount's question, I think, does not arise out of the one on the Order Paper, but I shall be glad to consider any information he may like to give about any difficulty in obtaining licences.

LORD SHEPHERD

My Lords, is the noble Earl not aware that it is State traders in China and in the Soviet bloc who are actual purchasers of British manufactured goods, and that, therefore, any action which, as the noble Earl has said, is to prevent or curtail State trading in those countries with Britain must affect our trade both ways?

THE EARL OF DUNDEE

My Lords, the answer is "Yes", but the principle is to treat all countries in the same way. I believe it happens to be the case that the classes of imports from China which fall under this import restriction are only about one-quarter of our total imports.

VISCOUNT ELIBANK

My Lords, is not the noble Earl aware that the illogical attitude to which he refers had applied to China for nine years, when suddenly Her Majesty's Government jumped in and took them out of this relaxation area and tried to solve the difficulty by making the position still more illogical?

THE EARL OF DUNDEE

My Lords, if we have been illogical for nine years, surely it is time we started being logical.