Mr. Lucasasked the President of the Board of Trade whether he is aware that subsidies are being paid by the German Federal Government to certain manufacturers in Western Germany to enable exports to be offered in European markets at artificially low prices; that this is detrimental to British export trade; and whether he will take action in this matter.
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§ Mr. P. ThorneycroftI do not think that German exporters receive any direct subsidy such as my hon. Friend suggests, but exporters of certain goods do benefit from an export incentive in the form of tax remission. My right hon. Friend the Chancellor of the Exchequer discussed this matter with Dr. Erhard when he visited Germany last year, and agreement was reached that the German Government would not seek renewal of the legislation under which this tax remission is granted when it lapses at the end of this year.