§ LORD COLYTONMy Lords, I beg leave to ask the first Question which stands in my name on the Order Paper.
§ The Question was as follows:
§ To ask Her Majesty's Government what steps are being taken to remove the advantages accruing to the German Democratic Republic through its so-called "inter-German" free trade with the Federal Republic of Germany, without the German Democratic Republic assuming any of the obligations—fiscal, economic or otherwise—of members of the E.E.C.
§ THE LORD CHANCELLOR (LORD HAILSHAM OF SAINT MARYLEBONE)My Lords, as members of the European Community Her Majesty's Government are party to the Protocol on German Internal Trade and Connected Problems annexed to the E.E.C. Treaty. It is under this Protocol that the German Democratic Republic has, in the market of the Federal Republic of Germany, the advantage of having its trade treated as internal and not external.
§ LORD COLYTONMy Lords, while thanking my noble friend for his reply, may I ask why this hard-line Communist country, at the very moment that it is reportedly sending volunteer pilots and electronic experts to Egypt, should enjoy free trade and save millions of pounds a year in tariffs without incurring any mutual obligations borne by full members of the Community? Secondly, does this situation mean that East German goods can find their way free of duty, or with reduced tariffs, to Member States of the Common Market other than the Federal German Republic? Finally, may I ask whether Her Majesty's Government will 1152 instruct our Permanent Representative at the Common Market in Brussels to join the Netherlands Government in vigorously seeking to alter this present arrangement?
§ THE LORD CHANCELLORMy Lords, the German internal Protocol Agreement with the East Germans is connected with internal trade. I do not dissent from the description of the German Democratic Republic as a Communist country, but the advantages it obtains are in connection with internal trade with Germany. As regards the second question, both the Common Market countries and the Federal Republic itself are concerned to prevent any spill-over into the Common Market. Although theoretically a gap could exist, they have no evidence that a substantial misuse is taking place. As regards the third question, I know that the Common Market Ministers are all interested in this question, and I can say that it will remain under their scrutiny.
§ THE EARL OF LAUDERDALEMy Lords, would the noble and learned Lord on the Woolsack confirm what was said from the Front Bench earlier this year; namely, that the Government would watch this matter very seriously in case difficulties should arise from it? Would he not agree that as things stand this Protocol does amount to a gaping hole in the Common External Tariff?
§ THE LORD CHANCELLORYes, my Lords. We are watching it like a cat outside a mousehole, but so far no mouse has come out. As for the "gaping hole", I suppose that all mouseholes gape, but the question is how many mice are inside.
LORD JANNERMy Lords, will the noble and learned Lord say whether in the course of these negotiations watch is being kept by members of the E.E.C., including ourselves, to ensure that, in regard to disadvantages which affect citizens of the respective countries in the E.E.C., as well as in the world, those who have suffered from Nazi persecution owing to the action of East Germany are properly compensated and given reparation for the material losses they have sustained?
§ THE LORD CHANCELLORMy Lords, the Question on the Order Paper relates to inter-zonal trade between East 1153 Germany and the Federal Republic. If the noble Lord wishes to put down a Question about compensation for Nazi persecution, I am sure that I or one of my noble friends will be very happy to answer it.