HC Deb 25 October 1949 vol 468 cc126-7W
85. Mr. Harrison

asked the President of the Board of Trade if he is aware of the position existing regarding the treaties with Argentina and Brazil, signed several months ago, in which the Argentine agreed to take £100 million worth of goods and Brazil £70 million worth and yet no licences at all have been issued for the import of any goods from this country that are substantially manufactured; and what steps he proposes to take to adjust this state of affairs.

Mr. H. Wilson

Whilst it is not correct that no import licences at all have been issued in Argentina for United Kingdom goods that are "substantially manufactured," it is the case that import licences have not yet been issued for the great majority of goods listed in Schedule 3 to the Trade Agreement signed this year. The Argentine authorities have informed His Majesty's Government that this is due to an unexpected decline in Argentina's sterling balances since the end of June. The situation has now been further complicated by the recently announced changes in the parity of the peso to the pound. His Majesty's Government's view of the situation has been placed before the Argentine Government, whose response is awaited. I am extremely anxious that stable conditions in the Argentine market for all classes of United Kingdom exports should be restored as soon as possible if this can be achieved under a settlement which is consistent with our interests as a whole.

Under the Trade Agreement with Brazil, exports were expected from the United Kingdom in 1949 to the value of £30,775,000 (excluding oil and petroleum); the figure of £70 million is the approximate value of the total estimated trade under the Agreement in both directions. It is not correct to say that the Brazilian authorities have not yet been licensing United Kingdom goods that are "substantially manufactured." Although the Trade Agreement was not signed until 3rd August, the Brazilian authorities continued, in anticipation, to license United Kingdom goods, including a varied range of manufactured products, to the value of £23,600,000 in the first eight months of 1949. Whilst temporary difficulties may now arise as a result of changes in the parity of the cruzoiro and the pound every effort will be made to ensure the maintenance of satisfactory trading conditions.