THE INDUSTRY AND TRADE COMMITTEE
19
7 July 1982]
[Mr Foster Contd.]
MR PETER REES, MP, MR C B BENJAMIN and MR A DUNNING
a member of the European Community, we cannot either legally or economically resort to general protectionist measures. That is not to say this has been recognised in such matters and I do not want to enlarge on it. Mr Cockeram mentioned MFA and there might be problems in our adjustment in certain sectors but it is recognised certain measures might be protected.
Mr Cockeram
18. Is there any prospect of inward investment in the UK from Singapore or is that something which you feel ASEAN countries are not interested in?
(Mr Rees.) I think it is unlikely even in the case of Singapore. That is not to say there might be special situations but as to general trade I would think it unlikely; they are capital importing not exporting coun- tries.
Mr McNally
19. From you enthusiasm with Mr Cockeram and Mr Foster you are obviously bursting to tell us about textiles and we know when you die MFA will be found carved on your heart, so can you tell us what the present state of play is with the ASEAN countries on MFA, particularly with bilaterals, and whether they are caus- ing undue friction on the trading questions in general and trading textiles in particular?
(Mr Rees.) I think as at the moment no bilaterals have actually been concluded with any of the ASEAN countries. They are in the process of negotiation, in the course of this summer, by the the European Commission. I have no doubt at all that they will be closely argued negotiations and I would hope, however, that they will be successfully concluded without damage to the community's trading and economic and political associations with ASEAN coun- tries.
20. Stories filter out from Brussels of walk-outs or break-downs in negotiations, none of those have applied to the ASEAN countries?
(Mr Rees.) I am not aware but that kind of phenomenon is often a feature of negoti- ations not only in the trade field.
21. In talking to Mr Cockeram earlier you talked about protectionist measures on our trade. is there a range of voluntary agreements with ASEAN and are they working well? I know that your Department
[Continued
often prefers the voluntary agreement to the government-negotiated agreement.
(Mr Rees.) As far as I am aware, there is only one voluntary restraint arrangement with the ASEAN countries, that is in the field of black and white television sets.
22. Are there any pressures for other agreements, voluntary or otherwise?
(Mr Rees.) Not that I am aware of, but may I turn to Mr Dunning, because he may possibly have received representations which have either escaped my attention or I have forgotten about.
(Mr Dunning.) So far as I am aware, there are no representations. There are, in fact, two agreements or rather voluntary re- straint arrangements, one with Singapore and one with Thailand. These relate, as the Minister says, to black and white television
sets.
23. When you are talking about trade, you are talking mainly about services and manufactured goods. Is there any great volume of agricultural trade and are there any problems in that field at all?
(Mr_Rees.) We import some of their agricultural products. I am not aware that we export any. There is a slight problem between the Community as a whole and some of the ASEAN countries about their exports of manioc.
Mr Stevens
24. Under the recent Companies Act provisions people dealing in British stocks and shares are required to keep a record of purchases and have that available at any time. This looks as if it might undermine the dealings of brokerage houses in the part of the world we are discussing where people buy and sell, exchange equity shareholdings in rather less formal ways than we do. Are you aware whether there has been any substantial loss of trade because of those regulations?
(Mr Rees.) I have not heard of it. I think, if I may say so, it is perhaps a question a Treasury Minister could more appropri- ately answer because I think it arises in the context of Capital Gains Tax and therefore probably would not — but I really do not speak with any particular knowledge or authority affect a foreign resident dealing in foreign shares outside this coun- try.
Sir Peter Emery
25. Minister of State, we are not always