38
7 July 1982]
[Mr Crowther Contd.]
MINUTES OF EVIDENCE TAKEN BEFORE
MR GT CHECKETTS, MR R T Fox, MR P J GODdard and MR A G B YOUNG
(Mr Checketts.) Yes, we could do the
same.
120. Would you be in favour of doing the same?
(Mr Checketts.) I would indeed.
121.
Have you talked to the Minister and the Department about that?
(Mr Checketts.) On that point, no. We are in regular contact, I do not wish to give you the impression we are not in contact, we are.
(Mr. Young) may I say that I noted that the French Minister of Trade called on President Suharto yesterday. Some 4 or 5 years ago, shortly after the announcement of the last Indonesian plan, the French mounted a trade fair in Jakarta on a scale we could not have done with our funds. It was extremely lavish. Thereafter the French equivalent of ECGD, COFACE, would appear to come over for specific projects. We now know the contracts are lost but by putting together all the evidence one can see there is a major co-ordination sometimes between the French political activity and the commercial activity and the way that is filtered down through the French establish- ment, if you like to call it that, to the commercial companies. We do not appear to have that in this country and I would ask the question maybe, should we look at this. It does require perhaps some shift of emphasis. I would not wish to go into specific cases here, it would be improper to do so; if anyone wishes to know of cases I would be prepared to do so privately.
Sir Peter Emery 122. Could I pursue the aid that CO- FACE appears to give. We have heard many times
and in my business I myself have had certain hints and aspects of evidence provided to me- but we have seldom been able to pin it down absolutely that there is extra aid which breaches GATT or EEC agreements. I wonder whether this is something about which the witnesses before us could assist in regard to ASEAN countries? Is it the case that much of the initial sales expediture in attempting to open up new areas is paid for by COFACE under the heading of research which becomes legal within our arrange- ments but, if it were a subsidy for selling, would be illegal? Have the witnesses before us any knowledge or experience of that?
(Mr Checketts.) Personally not, Chair- man. I would ask my members.
(Mr Young.) Chairman, I have heard it
[Continued
said by a French banker of repute that that does happen from time to time.
(Mr Goddard.) I would support that, Mr Chairman. As Sir Peter described it, stemm- ing usually from a very cohesive and fairly rapid identification and development of the opportunity by the French Embassy, very often headed by the Ambassador himself.
123. How important does the Commit- tee think this is, because particularly in areas which are likely to be imediately less productive, Mr Checketts has made it quite clear that one would go last to these areas. In business all of us would do that. But often that little extra incentive of meeting selling costs in areas which are less produc- tive is just the extra thing which assists industry to carry that out. Would witnesses agree with that?
(Mr Checketts.) Yes, I would personally. (Mr Fox.) Yes.
Chairman
124. That goes for all of you? (Mr Goddard.) Yes.
Mr Crowther
125. Could we turn now to the position of the United States and Japan in this market? In 1980 according to Annex C-III we have had supplied to us the fact that those two countries between them had 66 per cent share of all the OECD exports into that market and the UK share by this time had fallen to 6 per cent. Do you feel there are ways in which the United States and Japanese shares may possibly be dimin- ished in the future or are they likely to hold them or even increase them?
(Mr Checketts.) I think you have defined what SEATAG is all about. It is to get some of that trade away from America, away from Japan, to Britain. That is our definition.
126. How optimistic are you about that? (Mr Checketts.) Well, I am much encour- aged by the growth in interest in the area, in South East Asia, by British companies. That is the first thing. We have a series of seminars in different parts of Britain to bring British companies' attention to the area. I think those bear fruit. We have very successful case studies that is what the seminars are about and discussion does go on. I would say, given the new industrial scene in Britain and the more competitive industry with a greater interest in the area totally, we would expect - and we shall
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