§ Lord Buxton of Alsaasked Her Majesty's Government:
If they are considering any early development in relations between the United Kingdom and Argentina.
§ The Minister of State, Foreign and Commonwealth Office (Baroness Young)The twin objectives of our policy are: to fulfil our commitments to the Falkland Islanders; and to restore more normal relations between Britain and Argentina.
The question of sovereignty over the Falkland Islands is not for discussion. In our view, better relations with Argentina can only realistically be achieved by seeking agreement on practical issues.
119WACommercial and economic relations offer a natural opportunity for progress of this kind. We have on a number of occasions made it plain to the Argentine Government that we are willing to discuss this subject. They have not so far responded to any of these initiatives.
We have accordingly decided ourselves to take a fresh step to promote improvement in this field. We are lifting, with effect from midnight tonight, the ban on imports from Argentina which has been in place since April 1982.
The International Monetary Fund has stressed the importance of increased trade for the recovery of the Argentine economy and for the resolution of their debt problems. That is important for international financial stability and for the consolidation of Argentine democracy. We have consistently played a constructive part in the relevant negotiations in the IMF and the Paris Club. The announcement which I am making today will enable Argentina to recognise that if trade is to flourish it has to be a two-way street, and so to lift their restrictions on imports from Britain. It will also benefit British industry, by restoring access to Argentine raw materials, and employment in the United Kingdom.
Argentina now has the opportunity to respond to our initiative and thereby to open the way to further steps towards more normal relations between Britain and Argentina.