HL Deb 14 April 1981 vol 419 cc865-6

2.40 p.m.

Lord Hatch of Lusby

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 changes took place in trading relations between Britain and the Republic of Guinea in 1980.

Lord Trefgarne

My Lords, my department's official trade statistics show that United Kingdom imports from Guinea were £10.8 million and exports were £26.6 million. Imports thus showed an increase of £10.3 million over 1979 and exports an increase of £21.5 million over 1979—though I understand that both the import and export figures may have been distorted in 1980 by items in transit. In any event, the increase in our trade is significant—which is a welcome achievement by British firms.

Lord Hatch of Lusby

My Lords, may I thank the Minister for that reply and will he accept that those who have been pressing for greater trade with Guinea are pleased to know that this acceleration in trade on both sides has taken place? Can he tell us whether there is any question yet of ECGD cover applying to trade with Guinea, which would certainly increasingly accelerate the figures that he has given?

Lord Trefgarne

My Lords, as I have said, the increased figures which I reported for 1980 may have been considerably distorted by items in transit to which I referred. Too much importance should, therefore, not be attached to them. As to ECGD cover, I am afraid that that would depend upon a satisfactory resolution of the difficulties over the rescheduled debt agreement with which I think the noble Lord is familiar.

Lord Hatch of Lusby

My Lords, as the Minister has attached the question of ECGD cover to the debt, could I ask him whether it is not a fact that the debt is below £1 million; and, in view of the fact that cuts in Government overseas aid have already cost 15,000 jobs in this country, would it not be a good gesture both from the point of view of the economy of this country and from that of further business with Guinea if that debt were cancelled and serious attempts made to arrange for ECGD cover for business with this potentially very rich country? Will he also tell us what is the comparison between the figures that he has given and the figures of trade between Guinea and our competitors, such as France, the United States, Italy and West Germany?

Lord Trefgarne

My Lords, I cannot tell the noble Lord what is the level of trade between Guinea and countries other than the United Kingdom. But as for the question of debt, which the noble Lord has rightly associated with the question of ECGD cover, it is worth saying that the total debt owed under the rescheduled debt agreement is £7 million, of which just over £1 million is in arrears under the rescheduled debt agreement. The ECGD has to operate under prudent commercial constraints and we think that it would not be prudent to restore ECGD cover while the Guinean payment record is so unsatisfactory.