HL Deb 14 July 1986 vol 478 cc673-6

2.44 p.m.

Lord Rodney

My Lords, I beg leave to ask the Question standing in my name on the Order Paper.

The Question was as follows: To ask Her Majesty's Government whether they have revised their attitude towards encouraging efforts to increase exports to China and, if so, why.

The Parliamentary Under-Secretary of State, Department of Trade and Industry (Lord Lucas of Chilworth)

My Lords, government help for exports to China has recently been increased with the introduction of the £300 million development loan arrangement. In addition, substantial help continues to be available through the British Overseas Trade Board, the Export Credits Guarantee Department and our posts in China and Hong Kong. Prospects will also be enhanced by the state visit by Her Majesty the Queen later this year.

Lord Rodney

My Lords, I should like to thank my noble friend for that Answer. May I ask him whether he is aware that, due to the successful promotion of the Chinese market by Her Majesty's Government, the demand for support from the BOTB has increased considerably? Would my noble friend see whether it is possible to increase this support still further to help British companies who are anxious to keep abreast of the Germans and Japanese, who are making considerable inroads into this market?

Lord Lucas of Chilworth

My Lords, there is indeed a greater degree of activity in the Chinese market. The British Overseas Trade Board have responded to this by sponsoring 13 joint ventures, 12 missions, and six seminars in China for the year 1986–87. One has to recall that British Overseas Trade Board funds are, to an extent, limited, and we have to respond to all the world markets in giving support.

Lord Mellish

My Lords, is the Minister aware that the Chinese have decided to take an option on an important site in Docklands, and that they are being encouraged at a local level because the potential is there for the world to see? May I have an assurance that the Government are supporting such a scheme, because its potential is enormous?

Lord Lucas of Chilworth

My Lords, the Government of course will support, where they can, any scheme for the furtherance of trade with overseas countries. My understanding is that the Trade and Cultural Centre is a private enterprise operation in conjunction with one of the municipal states of China. I am sure that whatever help can be given through the normal channels would be given to a private enterprise effort of that nature.

Lord MacLehose of Beoch

My Lords, I thank the Minister for that encouraging answer. Would he agree that better knowledge of the country, its law and its language, would be of great assistance to our exporters? Would the Government therefore support those places of higher education, without which that knowledge would fade?

Lord Lucas of Chilworth

My Lords, I think that the noble Lord's question could be directed to a number of countries. Certainly the Sino-British Trade Council offer assistance and advice to potential exporters to China, and I think it would be to them that a potential exporter should make his first advance to find out what he ought to know and ought to be learning before he actually goes.

Lord Tordoff

My Lords, is the noble Lord aware that there is in October of this year in Peking a chemical trade exhibition, and that at the moment only one British chemical company is exhibiting there, and that approaches to the British Overseas Trade Board have failed to come up with any support for chemical firms wishing to show at that exhibition? Is that not a pity in relation to the way our competitors from West Germany are exhibiting there?

Lord Lucas of Chilworth

My Lords, there are a number of overseas exhibitions, and one must say, if the industry requires any defence, that they cannot exhibit at every single fair right across the world. The BOTB, through sponsor divisions, offer the opportunity. If industry fails to take it up, then I might suggest that that is to that industry's disadvantage. Certainly in these instances it is rather like leading a horse to water and you cannot actually make it drink when you get it there.

Lord Morris

My Lords, my noble friend referred to a £300 million development loan to the People's Republic of China. Would he be good enough to let me know for what purpose this loan is to be utilised?

Lord Lucas of Chilworth

My Lords, five projects have been agreed with the Chinese for consideration under the £300 million development loan facility. These involve a power station, a tractor factory, a stainless steel tube mill, a fibre optics transmission equipment facility and two specialised container ships. All these matters are under discussion with the Chinese authorities.

Lord Oram

My Lords, is not the recent devaluation of the Chinese currency an indication that China is anxious to increase its exports and to conserve its resources of hard currencies? That being so, should not our exporters seek to concentrate on capital goods such as those indicated by the question of the noble Lord, Lord Tordoff—that is, goods which enable the Chinese to develop their economy and earn the hard currency that they are so anxious to have?

Lord Lucas of Chilworth

My Lords, without wishing in any way to be condemnatory of the Chinese, theirs is of course a relatively poor country and their conservation of hard currency shows a certain prudence, but there is no doubt that politically and commercially they have declared an interest in buying more from the United Kingdom.

Lord Bruce of Donington

My Lords, is the noble Lord aware that last week the Chinese made a formal application to join the General Agreement on Tariffs and Trade? In the light of the Government's declared commitment to better the whole trading atmosphere between China and this country will the noble Lord give an unequivocal assurance that Her Majesty's Government will support the Chinese application to join GATT?

Lord Lucas of Chilworth

My Lords, as the noble Lord will know, this is essentially a matter for the European Commission. We shall give what support we can in the consultations that the Community, ourselves and China have on this matter.

Lord Hatch of Lusby

My Lords, is the noble Lord aware of the very imaginative twinning scheme between the City of Sheffield and the corresponding steel city in China—

Noble Lords

Name it.

Lord Hatch of Lusby

—which has led to a development of trade and which has shown the sensitivity of the authorities in Sheffield to what the Chinese want most of all, which is co-operative schemes between British firms and Chinese state firms? Will the Government both publicise and encourage further schemes of twinning of this kind which can be of both cultural and commercial value?

Lord Lucas of Chilworth

My Lords, it is certainly not for the Government to support or in any way interfere with the individual twinning arrangements that towns and cities in this country have with towns and cities in any other country. Certainly we support joint and collaborative arrangements between our business houses and business houses in other countries.