§ Mr. Marlowasked the Secretary of State for Trade what action he is taking to prevent adverse effects on United Kingdom trade from the extra-territorial application of United States laws concerned with trade embargoes and boycotts which purport to apply to British companies by reason of a United States shareholding; and whether he will use the powers in the Protection of Trading Interests Act to counter the effects of those laws.
§ Mr. Peter ReesThis is a matter of concern. The Government do not accept that these United States laws can properly apply to the activities outside the United States of British companies. Talks with the United States Government were held last October and are to be resumed early in the new year. I very much hope that we shall then have a substantive response from the American side to our proposals. In these circumstances, the use of the Protection of Trading Interests Act does not arise at the present time.
§ Mr. Durantasked the Secretary of State for Trade whether, in view of the implications of the recent North Atlantic shipping litigation in the United States of America, he will make a statement regarding his policy on the use of his powers under section 2 of the Protection of Trading Interests Act.
§ Mr. BiffenThe House is aware of Her Majesty's Government's concern about this case, which was in part 343W extra-territorial, and indeed involved proceedings against United Kingdom citizens before a United States court on account of their business dealings with other United Kingdom citizens within the United Kingdom. My predecessor made it clear to the House that the main object of the Protection of Trading Interests Act was to reinforce the defences of the United Kingdom against attempts by other countries to enforce their economic policies unilaterally upon us, especially by the extra-territorial application of domestic law—[Vol. 973, c. 1533.]
Section 2 of the Act empowers the Secretary of State to give directions to persons in the United Kingdom prohibiting them from complying with certain requirements to produce to any court, tribunal or authority of an overseas country, commercial documents or information not within the territorial jurisdiction of that country. It applies, among other cases, where such requirements infringe the jurisdiction of the United Kingdom or are otherwise prejudicial to the sovereignty of the United Kingdom.
The Government certainly view such jurisdictional infringements seriously and I expect any person in the United Kingdom to notify me in the event of any such infringement. I expect to issue a direction under section 2 of the Act in any case coming to my attention involving proceedings in an overseas court, tribunal or authority, against a person in the United Kingdom, on account of his conduct within the United Kingdom and outside the proper jurisdiction of that overseas body.