16
MINUTES OF EVIDENCE TAKEN BEFORE
7 July 1982]
MR PETER REES, MP, MR C B BENJAMIN and MR A DUNNING
[Continued
Examination of witnesses
MR PETER REES, a Member of the House, Minister for Trade, examined. MR C B BENJAMIN, Under Secretary (Overseas Trade Division 1: Projects & Export Policy Division), and MR A DUNNING, Assistant Secretary (Overseas Trade Division 2), Department of Trade, called in and examined.
Chairman
1. May I welcome Mr Peter Rees, Min- ister of Trade, to this public sitting of the Industry and Trade Committee. Much of our work so far has been concentrated on problem areas in British industry. Today we are turning our attention to international trade and we have decided to conduct a case study of the United Kingdom's trade rela- tions with one area of the world where it is generally agreed future potential for growth of trade is great, the countries of the Association of South East Asian Nations. We shall concentrate on Her Majesty's Government's assessments of the market prospects and the role of government in helping United Kingdom industry to partic- ipate in that potential growth. We are much obliged to you for submitting to us a paper on the ASEAN problems and your memo- randum describes some of the ways in which Her Majesty's Government tries to help United Kingdom industry in the AS- EAN markets. May I put if to you in this way to begin with: do you have any additional general comments to make be- fore we consider more detailed points?
(Mr Rees.) Chairman, I hope you found the paper submitted by the Department of Trade helpful and I think that probably it would be best for me to rest on that paper in general terms at this moment but perhaps if there are any particular points you need to explore by specific questions I can attempt to deal with them.
2. Then may I deal with the nature of the ASEAN market? To what extent do you expect the ASEAN countries' potential for growth to be realised?
(Mr Rees.) It is always difficult to make confident forecasts. Chairman, but their growth rate has been 7 per cent or 74 per cent over the past few years. They have ambitious development plans. They seem capable of funding them. I hope therefore that the growth will continue and will provide opportunities for British exports.
3. What priority does your Department give to improving United Kingdom trade with South East Asia as compared with other areas of the world?
(Mr Rees.) Chairman, I think it would be inaccurate to say that we have, as it were, a batting order for areas of the world. We can state areas of the world where our trade is increasing at a faster or slower rate. Europe is perhaps our largest export market, föl- lowed by the United States. But, that said, with limited resources one is obviously concerned to see British exports performing as well as possible in every area of the world. That, I am afraid, is a rather bland and general answer, but may I say we certainly attach importance to the ASEAN countries, not only because, of course, we have historic connections with two of them, but also for the reason which was by implication touched on in your first ques- tion, that it is a very fast-growing area.
Mr Stevens
4. Minister, to what extent from their point of view are the ASEAN countries following a policy of developing manufac- turing and processing industries them- selves?
(Mr Rees.) I think they all have obviously slightly different priorities. Although they are all concerned to establish a sound manufacturing base, of course there are differing degrees of development. For ex- ample, Singapore exhibits quite different characteristics from, say, Indonesia. Singa- pore is, after all, a very small sophisticated open market with very few natural re- sources. They have obviously a more devel- oped industrial structure than, for example, Indonesia which has something like 155 million people, is nothing like as open, and perhaps has a little leeway to catch up with the Singaporeans. But I think all in varying degrees are trying to improve their indus- trial structure. Energy obviously lies at the base of a great deal of what they have in mind, and again they all have slightly different perceptions and slightly different problems, again if I may contrast Indonesia which has considerable resources in that area with Singapore.
5. Which of them, if any, welcome joint ventures with countries like ourselves?
(Mr Rees.) I think it is fair to say they all welcome joint ventures, possibly for differ-