18
7 July 1982]
MINUTES OF EVIDENCE TAKEN BEFORE
MR PETER Rees, MP, MR C B BENJAMIN and MR A DUNNING
[Mr Cockerham Contd.] countries of western Europe have been starting from a rather low base and, of course, it is disappointing to find our proportion of exports has dropped but I think we can sometimes console ourselves by the fact that our exports to other markets, such as the continential countries of the European Community, have in- creased and it may be that, looking over the past decade, that British industry has been devoting itself perhaps a little more to exploiting the opportunities offered by our membership of the European Community and also by the increasing opportunities, for example, in the Middle East as a result of the explosion in oil prices. I think it would be fair to say it is not for me to generalise on behalf of British industry, perhaps their resources, like the resources of government, are fairly stretched and it may be they cannot devote themselves with equal vi- gour, or anyhow cannot spread their re- sources thickly over the whole world. It may be their perception of the opportunities in continential Europe and the Middle East have been greater than their perception of the opportunities in ASEAN. Certainly this Department is very concerned we should maintain our position out there and you will have probably seen from our proof and indeed published statements there has been a flow of delegations led by ministers and others, BOTB, London Chamber of Com- merce, to the countries of ASEAN in particular.
10. Are you concerned about the level of the debt burden in these countries and the dependence that frequently is placed upon load finance when placing orders?
(Mr Rees.) It is indelicate for me to comment too critically or too closely on the individual financing methods of foreign friendly countries. I think, however, they do have access to sources of finance from outside, third countries and I would think most of them are well capable of financing the development plans they have in mind.
11. Are you concerned that if we were to increase our imports from these countries there might be demands for restraint from UK companies resisting those imports?
(Mr Rees.) In a period of world recession obviously there are domestic pressures in every country in that regard, either a developing country or a developed. If I may touch on one sensitive area, obviously the field of textiles, switching for the moment to the subject of bilaterals -
[Continued
12. I think we are coming to that later because it is an important subject and we would like to treat it on its own.
(Mr Rees.) May I in general terms answer the question. There is obviously what I would call a great trade off here. If protec- tionist pressures are too insistent and too successful here in certain areas it can damage our exports in certain other fields.
13. Is the trade surplus, in your view, that we enjoy vis-a-vis imports and exports with ASEAN countries likely to continue?
(Mr Rees.) I would hope so. I see no reason why not, providing we maintain our interest, providing we adjust to their chang- ing markets.
14. The increase in gold imports from Singapore is something which is fluctuating in these statistics, is that something which you regard as a once and for all factor?
(Mr Rees.) I would not regard that as a continuing factor but it is a matter for commercial judgment and I do not know whether I am necessarily particularly well equipped to dogmatise on that subject.
15.
Mr Maxwell-Hyslop
Before the Minister leaves that, he was asked about our trade surplus, whether it is likely to persist, could I ask the same question of our non-oil trade? Presumably we would not export oil to Indonesia, but Singapore for instance, and Korea and the Philippines, do we have a significant oil element in our exports to them or do they rely on much more locally produced oil?
(Mr_Rees.) My impression, but I am afraid I do not actually carry the figures in my head, is that they rely much more on locally produced oil.
16. So our trade figures therefore with those countries would reflect manufactured goods as exports rather than oil?
(Mr Rees.) Manufactured goods and ser- vices.
Mr Foster
17. There is an impertinent and very naughty question which is going round in my mind and I wonder if the Minister would comment as to whether economic planning plus protecting our developing industries, financed by overseas borrowing might not be a recipe for getting this country off its backside?
(Mr Rees.) I think as a major exporting country, which is an adherent of GATT and
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