§ Sir Dudley SmithTo ask the Chancellor of the Duchy of Lancaster what new opportunities of trade with the Soviet Union have arisen since the announcement of the new policies of Mr. Gorbachev; and if he will make a statement.
§ Mr. Alan ClarkThe economic reforms announced by Mr. Gorbachev are bringing fundamental changes to the management of Soviet foreign trade. Responsibility has been decentralised and a number of industrial ministries and state enterprises have been granted foreign trade rights, providing opportunities for stronger links between foreign suppliers and end users. Higher priority has been given to imports of equipment which will modernise and increase the efficiency of Soviet industry, assist import 159W substitution and increase Soviet exports. Joint ventures and technical co-operation agreements are now actively encouraged. Banking reforms are creating opportunities for more flexible financing arrangements. None the less, the Soviet Union remains short of hard currency, and companies should be prepared to be flexible in their negotiations.