§ Mrs. McKayasked the President of the Board of Trade whether the volume of British exports and of British services to the Arab States are increasing; what estimate he has made of the effect of devaluation on that trade; and what initiatives Her Majesty's Government have in mind to develop further that trade and to increase and improve the relevant trade communications.
§ Mrs. Gwyneth DunwoodyThe value of exports to Arab States rose by 12 per cent. between 1965 and 1966 but fell by 15 per cent. last year. The fall reflects the situation in the Middle East as well as the delay to exports caused by the dock strikes in the United Kingdom; there has been some recovery in recent months. Information on exports of services to these countries is not available. I expect to see 165W progressive improvement in exports as devaluation takes effect. Diplomatic relations with the United Arab Republic and the Sudan have been resumed and it has been made known generally that Her Majesty's Government would be willing to resume relations with the other Arab countries which have broken them. These steps, together with the services the Government provides to exporters, should help further our exports to Arab countries.