TNAG-1154-FCO40-1434-Visits-by-Members-of-Parliament-(MPs)-to-Hong-Kong-1982 — Page 94

7 July 1982]

THE INDUSTRY AND TRADE COMMITTEE

MR PETER Rees, MP, Mr C B BENJAMIN and MR A DUNNING

[Mr Foster Contd.] particularly with countries like the ASEAN countries: can we do more in Britain to import their goods? I had to say (obviously I am not charged with any responsibility to future or past administrations) that this administration is not in a position to con- duct an export drive for those countries.

Sir Peter Emery

33. Could we then go on to the trading negotiation factors? Does the European Commission negotiate trading relations with ASEAN countries as a group or is this left entirely to individuals?

(Mr Rees.) In a normal sense where there are, shall I say, questions like the multi- fibre arrangement, yes, that is the formal responsibility of the Commission, but that is not to say that each country of the Euro- pean Community does not have a distinct bilateral relationship with countries like ASEAN and obviously the Commission is certainly not charged in the way the British administration is with the business of ensur- ing the best possible flow of British exports.

34. Leaving the MFA out, can you remind the Committee of any area in which the Commission has negotiated on trading relations or trading relationships or regula- tions or anything of that kind with AS- EAN?

(Mr Rees.) I think there have been relations between the Commission and the ASEAN secretariat, I cannot readily call

35. Perhaps this is a matter of fact and you could have one of your officials look at this and let us have a short note on it?

(Mr Rees.) Indeed. I am reminded there was a European Community-ASEAN co- operation agreement and we can perhaps let you have a note of the precise terms of that agreement. Again perhaps I could indicate in a formal sense the European Commission will have a voice at the GATT Ministerial meeting but will not inhibit individual countries to make a national contribution to the debate.

36. To what extent do the ASEAN countries enjoy preferential access to the EEC in any way, either manufacture or agriculture?

(Mr Rees.) They are the beneficiaries of the GSP system of preference.

37. How much does that mean in mone- tary terms?

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(Mr Rees.) I am afraid I could not give you an answer. We will have to send you that information.

38. Is it you feeling that the ASEAN countries are satisfied, leaving MFA out (that always is a case on its own) with present arrangements?

(Mr Rees.) You are asking me to speak for foreign governments

39. No, I am asking you actually to say in your negotiations with them, do you have the feeling (and more often than not Minis- ters soon get the feeling if people are dissatisfied) do you get the feeling most of them are satisfied with their relationships with the United Kingdom?

(Mr Rees.) There is a special and delicate question, obviously, of the Malaysian Gov- ernment's policy, which I sense you may want to raise specifically. There is also always the general pressure, "Can you not take more imports from us" and I think the very fair reply that any British Minister can give is, "Ours is a very open market". Beyond that of course there is the question of counter-trade in Indonesia but I do not say that necessarily clouds our relationship. That is prepared and we want to see how that is going to apply in practice. In general terms, apart from the fact they would always like to increase their exports to us, I cannot pinpoint any general feeling of dissatisfaction.

40. In the trading factors are there any demands for barter arrangements, third party exchange factors, before they will actually begin agreeing to place orders which become export orders from the United Kingdom?

(Mr Rees.) As I said, then only case that comes to mind at the moment is the counter-trade policy in Indonesia.

Chairman

41. At the end of paragraph 8 of the paper you gave us you say: "The ASEAN countries would like to see improvements in their preferential access (e.g. for plywood) although there is scope for them to make better use of the preferential access they have already under the GSP." Is that scope a wide one or is it narrow? What is the extent of it?

(Mr Rees.) I do not think it is a particu- larly wide one, I think it is a rather specialised access.