HL Deb 23 October 1968 vol 296 cc1473-5
LORD BARNBY

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 what is the total of the unfavourable balance of trade with the U.S.S.R. over the past five years.]

THE MINISTER OF STATE, BOARD OF TRADE (LORD BROWN)

My Lords, over the five years, 1963–67, imports from the U.S.S.R., measured c.i.f., averaged £112.3 million a year and exports and re-exports, measured f.o.b., averaged £53.2 million a year. The difference between the figures overstates the unfavourable balance of trade because of the differences in valuation.

LORD BARNBY

My Lords, arising out of that reply, and in view of the substantial sums which the Government spend in helping exports through the National Exports Council, Fairs and so on, is the noble Lord able to give, any indication that the Government art, contemplating any proceeding whereby, in cases such as the one he has just quoted where the balance is for all time so much against this country, guidance will be given to bring imports from those directions where the balance of payments is less unfavourable?

LORD BROWN

My Lords, I do not want the House to be misled as a result of my Answer. The figures I have given indicate a five-year crude balance of trade to the extent of £295 million in favour of the U.S.S.R., but it should be remembered that the difference in valuation may account for as much as up to 10 per cent. In addition, there is a considerable entrepôt trade done in this country in importing furs and diamonds and other materials which are resold elsewhere. This might account for as much as about £25 million a year. So the overall balance-of-payments figure is nothing like as great as this crude balance of trade would suggest. I do not think the suggestion from the noble Lord that we might begin to tend to influence the source of many of our imports to redress this balance would be helpful. For example, our crude adverse trade Mance with Canada. another country which in many respects complements the supplies coming from Russia, is over £200 million per annum. To tend towards this form of adjusting adverse balances in this way would be against the general policy of the British Government. We are at all times anxious to increase our exports to, countries where we have adverse balances, and it may interest the House to know that in the eight months of this year our exports to Russia totalled £68 million as against £64 million for the whole of last year.

LORD BARNBY

My Lords, I thank the noble Lord for that most informative reply. Would he be able to make any comment now on the further adverse effect which is occurring, it is understood, by Russian shipping entering into distant routes and disregarding Conference rates, much to the disadvantage of British shipping?

LORD BROWN

My Lords, it would be much too early to make any comment on the possible results of Russian competition with our shipping on certain new routes. I am afraid I cannot give the noble Lord an answer at this stage.