§ Mr. Jim CunninghamTo ask the President of the Board of Trade how GATT will affect the ability of Rolls-Royce in Coventry to compete with other aero engine manufacturers.
§ Mr. Sainsburyno new agreement on civil aircraft—a category which includes aero-engines—was concluded at the end of the Uruguay round. The parties involved agreed to retain the status quo, and to continue negotiations for a further year on the basis of a text drafted by the chairman of the relevant GATT sub-committee. Thus, the competitive position of Rolls-Royce will not be affected immediately.
In the long term, our aim is to put into place an agreement which controls all forms of government support to the aerospace industry, in particular the high levels of indirect support which the United States aero-engine industry receives. Such an agreement would help Rolls-Royce to compete on an equal basis in world markets.