§ Mr. D. GRENFELLasked the Secretary of State for Foreign Affairs (1) whether his attention has been called to the resolution passed by the European Commission of the League of Nations regarding the adverse effect of the multiplicity of Customs barriers in Europe and urging their reduction; and whether he will enter into immediate negotiations with this object;
(2) what reply the Government propose to send to the request from the Secretary-General of the League of Nations for their views on the recommendations which the European Commission last September decided to submit to the various Governments, and, in particular, that which points out the injury done by the multiplicity of Customs tariffs in Europe and urges their reduction?
§ Mr. EDENThe Committee of Economic Experts set up by the European Commission were in favour of Customs Unions in Europe, or, having regard to the practical difficulties attendant on the formation of Customs Unions, arrangements in the nature of regional preferences. As regards Customs Unions, many of the commercial treaties concluded by His Majesty's Government in the United Kingdom make provision for an exception from most-favoured-nation treatment in favour of such unions. As regards regional preferences, however, His Majesty's Government in the United Kingdom hold that it would cause conflict with the spirit of the most-favoured-nation clause if any countries were to conclude arrangements with each other which they did not extend to other countries. It is proposed to reply in this sense to the Secretary-General of the League of Nations. As regards the hon. Member's suggestion that negotiations should be undertaken to secure the reduction of European Customs tariffs, I would refer him to the answer given by my right hon. Friend the President of the Board of Trade on 1st December to my hon. 2069W Friend the Member for East Wolverhampton (Mr. Mander).