§ 2.34 p.m.
§ THE EARL OF LAUDERDALEMy 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 whether, as a Member Government in the E.E.C., they will ask the German Federal Republic what imports from the German Democratic Republic they know, or believe, to have been re-exported, by categories, year by year since 1971.
§ THE PARLIAMENTARY UNDER-SECRETARY OF STATE, DEPARTMENT OF TRADE AND INDUSTRY (THE EARL OF LIMERICK)My Lords, I see no reason in present circumstances for doing as the noble Earl suggests. The total of imports into the Federal Republic of Germany from the German Democratic Republic—that is DM 2,318 million in 1971, which was some £280 million at 271 the then exchange rate—is less than 2 per cent of total Federal German imports. I have no evidence to suggest significant re-exports.
§ THE EARL OF LAUDERDALEMy Lords, while thanking my noble friend for that reply, may 1 ask him whether he is aware that this is a question of a loophole in the common external tariff which has widened to the extent of a volume of trade passing between East and West Germany from £150 million to £250 million sterling each way over five years, and that therefore this loophole deserves thorough investigation?
§ THE EARL OF LIMERICKMy Lords, this of course goes back to the protocol to the Treaty of Rome. I am aware that there has been an increase in the trade between East Germany and West Germany, but this is in categories which are suitable to the import needs of West Germany, and I have no evidence—if any Member of this House has evidence I shall be glad to consider it—that there is any abuse in this connection.
§ THE EARL OF LAUDERDALEMy Lords, since my noble friend has been so kind as to answer my supplementary question, may I put this further question to him? Is he aware of the words used by his noble friend Lady Tweedsmuir in answering a Question on this subject some while ago, when she said that there were heavy tax disincentives on re-exports from West Germany to the rest of the Common Market? Will he not agree that, if that is so, there must be some yardstick whereby re-exports from West Germany to the rest of the Common Market can be measured?
§ THE EARL OF LIMERICKMy Lords, exports from West Germany to other members of the E.E.C., which are of course subject to transitional arrangements, will henceforward be dealt with without tariff questions arising.
§ THE EARL OF LAUDERDALEMy Lords, is my noble friend aware that his noble friend Lady Tweedsmuir said that there are heavy tax disincentives on this sort of operation? Can he find out whether or not these heavy tax disincentives have been brought into use and, if so, to what extent?
§ THE EARL OF LIMERICKMy Lords, of course I shall look into that question, but I think there is possibly some misunderstanding.
§ THE EARL OF LAUDERDALEMy Lords, surely my noble friend can answer the question—
§ LORD SHACKLETONMy Lords, is there a misunderstanding on the Government Front Bench on this matter? Since the noble Earl was kind enough to say that he will look into the matter, is he prepared, if he finds that there is not the sort of communication which there should be between the Foreign and Commonwealth Office and his Department, to consider correcting any misunderstanding that there may be in the House?
§ THE EARL OF LIMERICKMy Lords, I take note of what the noble Lord the Leader of the Opposition has said, and I shall certainly speak to my noble friend about this matter.
§ LORD WYNNE-JONESMy Lords, may we be assured that it is not the intention of Her Majesty's Government to do anything to restrict trade as a result of our joining the Common Market?
§ THE EARL OF LIMERICKYes, my Lords.
§ LORD HALEMy Lords, will the noble Earl really consider, as a matter of urgency, the absolute necessity of a digest of statistics for the Common Market giving us a good deal of this relevant information, with comparisons of social services and so on, rather on the lines of our Monthly Digest, so that we can have some information as well as members of the Government?
§ THE EARL OF LIMERICKMy Lords, I think that the noble Lord, Lord Hale, is addressing himself to a somewhat different question, but I take note of what he has said.
§ THE EARL OF LAUDERDALEMy Lords, are we to understand that the West German Government does not, in fact, know and has no means of knowing, what trade passes between itself and its Common Market partners in view of its tax disincentive reward for those who do re-export what has come from East Germany?
§ THE EARL OF LIMERICKMy Lords, the question refers to the amount of goods re-exported. I think it is evident that if goods are exported by West Germany within the Common Market they are exported as West German goods.
§ THE EARL OF LAUDERDALEMy Lords, will my noble friend find out for us and let us know how these tax disincentives work?
§ LORD SHACKLETONI should give up.