§ Mrs. GormanTo ask the Secretary of State for Trade and Industry what information he has on any proposed joint ventures between United Kingdom companies and East Germany.
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§ Mr. RedwoodI am not aware of any actual joint ventures between British and German Democratic Republic companies. Such joint ventures are certainly possible although the formal legislation is not in place yet. We are advised that although the East German authorities have specified a maximum foreign shareholding of 49 per cent., in practice it might be possible to exceed this. Several British companies have built up close trading links with East German enterprises, particularly in the food processing machinery and health care sectors, and I know of at least two companies being set up in the German Democratic Republic under British auspices to market British products and expertise in these sectors. Other legislation to facilitate trade and investment is being discussed, for example, a double taxation agreement and an investment promotion and protection agreement.
§ Mr. FlynnTo ask the Secretary of State for Trade and Industry if, during his recent visit to eastern Europe, he discussed the possibility of providing export credit guarantees to support the development of environment-friendly industrial plants.
§ Mr. Redwood[holding answer 20 March 1990]: My right hon. Friend met Ministers and senior officials during his visit last week to the USSR and Poland. He did not discuss environmental issues in particular, but I am sure both Governments recognise the need to improve the environment. The ECGD will consider support for United Kingdom exports and investment to eastern Europe to the extent and on terms the Department considers prudent in particular countries.