THE INDUSTRY AND TRADE COMMITTEE
7 July 1982]
[Continued
31
Memorandum submitted by SEATAG (South East Asia Trade Advisory Group) (AS 2)
1. INTRODUCTION
1.1 Growth
The ASEAN countries have in recent years achieved remarkably high rates of economic growth. This growth has also been relatively stable and is likely to continue despite the world recession. Nevertheless, the UK share of this growing market is, at best, holding its own and it is this aspect which is the main concern of SEATAG.
1.2 Opportunities
The principal opportunities lie in the development of energy resources, communications, infrastructure, transportation, engineering investment and consultancies.
1.3 Competition
In addition to the well established competition in the ASEAN market from Japan and the USA, SEATAG anticipates growing competition from France arising from strong, co- ordinated and ruthless Government/industry co-operation supported by increased Government aid.
2 IMPROVING THE PERFORMANCE OF UK
SEATAG offers the following comments aimed at improving UK performance:-
2.1 Aid
i) The Aid and Trade Provision (ATP) is probably the most important factor in winning significant contracts. To compete with the current fierce competition from many countries there is a strong case for an increased ATP. This is particularly relevant after the recent consensus increases in medium and long term interest rates. The speedy application of this vital form of Government support is essential. So we ask, should the ATP Vote be administered by the Department of Trade rather than the Overseas Development Administration?
ii) Technical Training
There is a strong demand for technical training at the machine shop/tool room level in most of the ASEAN countries. The requirement is for training in the countries concerned. Germany runs excellent Technical Institutes of this nature that produce technicians who are totally oriented towards German equipment and machinery. The UK should have an advantage due to the widespread use of the English language but this is not fully exploited.
iii) Language Classes
There is a strong demand for language classes in ASEAN countries. France and the USA cater for this with great success and their language classes are always over-subscribed. Existing British Council facilities should be developed and there should be less emphasis on the cultural background of the students and more on commerce and industry.
2.2 Overseas Students Fees
SEATAG is convinced that student training at British universities and in industry in the UK influences our prospects for winning export orders. The recent submission to HMG of "A Policy for Overseas Students" by the Overseas Students Trust should stimulate further debate about the opportunities to be realised through a positive overseas students policy. SEATAG urges speedy consideration of this submission insofar as it relates to trade and industry.
2.3 Commercial Staff in Overseas Posis
i) The levels of commercial staff in South East Asian Posts have recently been set by FCO Inspectors' reports. These were based on past history. There was prior enquiry of the Department of Trade regarding future market potential but the view of the private sector