HC Deb 08 March 1951 vol 485 cc79-80W
Mr. Edelman

asked the Chancellor of the Exchequer whether he has any statement to make on the recent talks with the Danish Ministers in London.

Mr. Gaitskell

Yes. The Danish Ministers for Foreign Affairs and Finance visited the United Kingdom from 28th February-2nd March for exploratory conversations with the Chancellor of the Exchequer and other United Kingdom Ministers on problems affecting Danish food exports to the United Kingdom and imports from the United Kingdom of goods essential to the Danish economy. The conversations were cordial and helped towards a better understanding of our mutual problems.

The Danish Ministers emphasised the serious effects on their economy of the deterioration in the terms of trade following the devaluation of sterling, pointing out that the situation had been aggravated as the result of events in the Far East. They drew attention to the grave difficulties facing Denmark due to the increasing shortages of raw materials and semi-manufactures essential to Danish production and referred to the dependence of their country on the United Kingdom for many of their essential needs, such as coal and coke, oil, iron and steel, nonferrous metal products, etc. The Danish Ministers also drew attention to the difficulties facing Danish agriculture as the result, amongst other things, of higher costs of production and expressed the fear that the present prices paid by the United Kingdom for Danish foodstuffs would result in a decline in production.

The United Kingdom Ministers pointed out that the United Kingdom was similarly affected by the serious deterioration in the terms of trade. They understood Denmark's difficulties and would assist to the greatest possible extent in meeting Denmark's vital needs, bearing in mind the increasing demands of defence on supplies of metals and the limitation put on exports by decreased availabilities of certain imported raw materials and subject, of course, to any undertakings under international arrangements. It was agreed that the question of exports from the United Kingdom of goods essential to Danish production should be kept under review and that further consultations should take place if necessary.

There was a full and frank discussion of problems of mutual interest in relation to the exports of foodstuffs from Denmark to the United Kingdom. The United Kingdom Ministers said that they were anxious to see deliveries of Danish foodstuffs to the United Kingdom increased. They undertook that full account would be taken of the representations made by the Danish Ministers in relation to food contracts. It was agreed that experts from both sides should meet together in London at an early date to review the whole range of problems affecting Danish food exports to the United Kingdom. In particular the experts would consider all factors—including prices, availability of feedingstuffs and the like—which would affect the ability of Denmark to maintain or expand her sales of foodstuffs to the United Kingdom.