TRADE WITH RUSSIA (Hansard, 4 December 1973)

§ LORD BARNBY
My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.

§ THE PARLIAMENTARY UNDERSECRETARY OF STATE, DEPARTMENT OF TRADE AND INDUSTRY (THE EARL OF LIMERICK)
My Lords, as I informed the noble Lord on April 2, 1973, we cannot expect to have an exact balance of trade with every country, but Ministers and officials of the Department of Trade and Industry have frequently found occasion to express disappointment at the stagnant level of Soviet imports from Britain. There was substantial discussion of the subject at the second 437 meeting of the joint Anglo-Soviet Commission in April, and it may be expected to feature prominently at the third meeting which is expected to be held in May next year.
Meanwhile, the text of a new long-term Agreement on the development of Economic, Scientific, Technological and Industrial Co-operation was initialled on November 5 and we expect it to be signed in the near future. My right honourable friend the Secretary of State for Foreign and Commonwealth Affairs is to-day in Moscow and is emphasising once again the strong desire of Her Majesty's Government for a substantial increase in British exports to the Soviet Union.

§ LORD BARNBY
My Lords, would not the Minister agree that while our requirements from Russia are largely raw materials, when it comes to manufactured goods, such as automobiles and tractors, containing a high proportion of labour at a low cost, it is quite a different thing when trade is unreciprocated?

§ THE EARL OF LIMERICK
My Lords, of course the conditions are different in the two countries and the pattern of trade follows those differences. It is a fact that if we make allowance for our imports from the Soviet Union, notably diamonds, other minerals and furs which are substantially re-exported from this country, the imbalance of trade is very substantially diminished.

§ LORD SHEPHERD
My Lords, would the noble Earl say what the Export Board has done in terms of promotion of British trade to the Soviet Union, and how much in terms of Government financial assistance has been available to the various organisations for development of our sales to the Soviet Union?

§ THE EARL OF LIMERICK
My Lords, exporters enjoy the same ability to use the range of services provided by the British Overseas Trade Board as exporters to other areas. There are, of course, special exhibition which, as the noble Lord well knows, are the central method of promoting trade there, which receive full assistance on these lines.

§ LORD SHEPHERD
My Lords, has the Export Board made any specific effort in the field of Soviet trade? Further, can the noble Earl say how 438 much in cash has been made available by the British Government, say during the last 12 months, for the development of trade with the Soviet Union?

§ THE EARL OF LIMERICK
No, my Lords, I cannot give that answer without notice. It depends on the demands for the services made by individual exporters.

§ LORD BARNBY
My Lords, since my question largely referred to manufactured goods and my understanding was that the Minister did not answer the question, may I ask whether he would not agree that there is urgent need to produce more reciprocity on high labour content exchange of goods? Secondly, would he not think that perhaps there would be advantage in a trade union mission to look into conditions of work and rates of pay in the Soviet Union, as has recently been done in such orderly manner by the mission of the Trades Union Congress to South Africa?

§ THE EARL OF LIMERICK
My Lords, there was recently, as I think my noble friend is aware, a mission to Russia from the Trades Union Congress, and doubtless this was the type of question they would have explored. As regards the nature of the trade exchanges, it is a fact that the products from the Soviet Union which we have the greatest need to import are the raw materials which form the bulk of their exports to us.