§ 3.4 p.m.
Lord Campbell of CroyMy 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 what progress is being made to remove discrimination against imports into Japan of whisky from the United Kingdom.
§ The Parliamentary Under-Secretary of State, Department of Trade and Industry (Lord Lucas of Chilworth)My Lord, as a result of a request from the European Community, a GATT panel has been established to investigate Japan's treatment of imported alcoholic drinks. The panel had its first meeting on the 28th of this month and is expected to report by the end of July.
Lord Campbell of CroyMy Lords, I am grateful to my noble friend for reporting the progress of the panel. Does he agree that the Japanese, having failed in all their attempts to copy Scotch whisky—no doubt because of certain essential ingredients available only in the Highlands—have now resorted to discrimination in taxation to try to reduce, or exclude, these imports?
§ Lord Lucas of ChilworthMy Lords, I accept, of course, what my noble friend says with regard to the special ingredients. But as for copying and failure so to do, I think the real point here is that the Japanese have failed over a number of areas to open their markets to world traders, notably ourselves. There is a significant imbalance in our trade. We are therefore taking the opportunity of pressing the Japanese to redress that balance.
§ Lord Williams of ElvelMy Lords, is the noble Lord aware that the Japanese are not impressed by ministerial statements or by British Ministers who visit Tokyo uttering dire threats like a latter-day King Lear? They are not impressed unless action is taken. Either the Government are going to take action, or they should keep quiet.
§ Lord Lucas of ChilworthMy Lords, I can understand why the noble Lord, Lord Williams, says that. But, really, it is in our best interests to persuade the Japanese to open their markets. Indeed the Japanese trade minister will be talking with my right honourable friends the Prime Minister, the Foreign Secretary and the Secretary of State for Trade and Industry this afternoon in an endeavour to break the deadlock. I am sure the House will accept that it is not in our long-term interests to engage in a battle with the Japanese on this matter. It is in our long-term interests to persuade them that their interests lie parallel with ours in opening their markets to world trade.
§ Lord MottistoneMy Lords, can my noble friend say whether there has been any progress in the GATT negotiations over processed foods, and biscuits and confectionery in particular?
§ Lord Lucas of ChilworthNot without notice, my Lords. I am sure my noble friend will accept that he asks a question about solid foods and the original Question was about liquid foods.
§ Lord Taylor of GryfeMy Lords, would the Minister agree that it is desirable to exhaust all avenues of negotiation before embarking on protectionist measures which could have international implications?
§ Lord Lucas of ChilworthMy Lords, I am sure that the noble Lord, Lord Taylor of Gryfe, is right. I agree with him. Protectionist measures are in the interests of nobody in any country in the trading world.
Lord Bruce of DoningtonMy Lords, will the noble Lord say whether he will inform Her Majesty's Ministers who are negotiating with the Japanese that they should also tell the Japanese that it is not in their long-term interests to wage a trade war with us?
§ Lord Lucas of ChilworthMy Lords, I am happy on this occasion to agree with the noble Lord, Lord Bruce of Donington. It is in nobody's interests at all to engage in either trade wars or protectionist measures which reduce the economic growth of the world.
Lord Campbell of CroyMy Lords, while agreeing with that statement by my noble friend, is he aware that the discrimination to which I referred started many months before the difficulties with Japan which have recently emerged? Can he tell us about the assurances given to Britain at the highest level a year ago? With reference to the previous Question on the Order Paper, is my noble friend aware that this is an excellent beverage for the health—taken in moderation, of course?
§ Lord Lucas of ChilworthMy Lords, as regards the last question, I am sure my noble friend is absolutely right. It has sustained me through many difficult periods. I think the House will be aware that the Japanese Prime Minister had some difficulties with his budget and that the proposed tax reforms have now been referred to a special committee.