§ Lord DAVIES of LEEKMy 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, in view of the recognition of the EEC by the Chinese People's Republic and the statement by Commissioner Sir Christopher Soames that the Community has taken over responsibility for commercial policy in relation to China since January 1975 and that therefore individual trade agreements between China and Community countries have expired, what responsibilities they have to settle reciprocal trade agreements with the Chinese People's Republic without first consulting the EEC authorities.
§ The MINISTER of STATE, DEPARTMENT of INDUSTRY (Lord Beswick)None, my Lords.
§ Lord DAVIES of LEEKMy Lords, in the name of sanity! Is my noble friend telling me that Her Majesty's Government no longer have any responsibility for commercial policy in relation to China? Secondly, is my noble friend aware that only last year an Overseas Project Development Area was developed through the Overseas Board by the then Minister, Mr. Shore, to give advice to consultants, to bankers and people trading in China? Finally, is my noble friend aware that only a few weeks ago there arrived at the Royal Albert Docks from China the first freighter carrying 600 tons of goods to Britain, thereby acknowledging the fact that in three months we had done £6 million worth more trade with China then ever before? Yet now the British people are told 710 that they have no responsibility for trade with China.
§ Lord BESWICKMy Lords, the position is not quite like that. I did not say we had no responsibility for trade; I said we had no responsibility for trade agreements with the Chinese People's Republic. So far as securing or encouraging trade is concerned, we do have responsibility in these matters. I was the leader of a trade mission which went to China within the last few months. So far as trade agreements are concerned the position is that, under Council Decision 69/494 of 1969, on the expiry of Member-States' bilateral commercial agreement with China these responsibilities were terminated on 31st December 1974. In accordance with Article 113 of the EEC Treaty, all responsibility for commercial relations with China now falls to the Community.
§ Lord BALNIELMy Lords, is the noble Lord aware that both on the grounds of developing a common commercial policy for Europe, and on the grounds of improving trade between Europe—and Britain included in Europe—and China, the statement of Mr. Christopher Soames is warmly to be welcomed?
§ Lord BESWICKMy Lords, I was not talking about the warmth with which it should be welcomed, but on the facts.
§ Lord BLYTONMy Lords, is my noble friend aware that under the Treaty of Rome, now that we are in the Common Market, we have no power to make agreements with third countries unless we get the consent of the Brussels Commission? Has that not taken away our independence as a nation?
§ Lord BESWICKMy Lords, it certainly takes away our right to conclude an agreement relating to duties, quotas and other measures of regulating trade, but it does not take from us the right to try to secure business from China within the scope of any trade agreement that the Community may conclude.
§ Lord DAVIES of LEEKMy Lords, my last question, since the whole position is pretty well hopeless, is: Is my noble friend aware that a prototype exhibition—it was given this name by the German Democratic Republic—was held on the 13th June in Cologne? Is he 711 aware that it was then put forward by Mr. Ch'ai Shu-Fan, the Vice-Minister of Trade, that this was to be the prototype of the pattern of trade with China in the future? Britain therefore, has given away all the initiative and experience of 100 years of Far Eastern trade.
§ Lord BESWICKMy Lords, I suggest to my noble friend that he is exaggerating a little. In this country there are in existence, as he possibly knows, the Sino-British Trade Council and the China Council for the Promotion of International Trade, both of which are very active in securing business with China. Trade with China over recent years has shown an increase in both directions, outward and inward; but the answer to the question of my noble friend is as I have stated.