22
7 July 1982]
MINUTES OF EVIDENCE TAKEN BEFORE
MR PETER REes, MP, MR C B BENJAMIN and MR A DUNNING
[Continued
Mr Crowther
42. Looking at the figures which your Department kindly sent on trade with those five nations, it is very noticeable that Britain, or the UK, trade with Malaysia and Singapore is enormously greater than with the other three, though the other three in population terms are very much bigger. Are these purely because of the historical con- nections, because of the Commonwealth connections?
(Mr Rees.) Very largely for historical reasons. Malaysia and Singapore are rather different markets, Singapore is a particu- larly good base for many companies as a springboard into South East Asia generally, that may be an additional factor, but I would say if you asked me to single out any one factor, it is the historical connection, the fact we have been considerable investors over many decades in those two countries.
Mr Maxwell-Hyslop
43. History apart, to what extent does our lack of facility in foreign languages affect the issue? In that Singapore and Malaysia have a traditional understanding of English, whereas in Indonesia the corre- sponding European language would be Dutch. How important are linguistic barri- ers as impediments to trade in the non- British Commonwealth Asian countries?
(Mr Rees.) I find that a difficult question to answer with confidence. For instance I have found, although I have not travelled extensively in Indonesia, to my regret, that the second language is now becoming English, it is only the elderly who still have memories of education at Leiden Univer- sity, or wherever. Certainly my limited experience in the ASEAN countries is that the language of commerce is definitely English and, after all, the Philippines have a long experience of American administra- tion. Of all the countries in the world, apart from our friends in America, we suffer from the least linguistic disadvantage. That is not to say that British business should not be educating its brightest export managers in the primary languages of the ASEAN countries, but I do not think I am in a position to say with confidence how far we fall short of the ideal.
44.
Sir Peter Emery
The last of the major factors in trade is obviously the fact of exchange rates. Do you feel that UK industry has been ham- pered by the rate of exchange which has
existed between sterling and ASEAN cur- rencies?
(Mr Rees.) It may have been a factor a couple of years back but I would not think it is now.
Mr Foster
45. Would it be possible, Chairman, for the Department perhaps to do a little exercise for us to plot the trends in rates of exchange of ourselves and our major com- petitors against exporting success in these ASEAN countries? It is a matter of interest but I think it might be helpful.
(Mr Rees.) We will try and oblige on that. How far any firm conclusion can be drawn is up to the Committee but we will try and produce the evidence.
Mr Hill
46. If we could turn next to the financial packages for exporters. Is UK aid and trade provision in the ASEAN countries suffici- ent?
(Mr Rees.) In general terms we do not, of course, allocate aid and trade provision to any one country. It is on a first come, first served basis, as a contract comes up where it is necessary to try to match an offer by some other country in that field, then we consider whether the contract should be assisted with aid and trade contributions. There is not, as it were, the sort of conscious regional policy in that regard.
47. Is aid being reduced to these coun- tries in real terms? Is it still a one-off thing? As a proposition comes forward or a project is an individual decision made or is there a ceiling which can be reduced by the Trea- sury team, say, annually?
(Mr_Rees.) Aid and trade provision in general terms would not be reduced, slightly increased. On the question of bilat- eral and multi-lateral trade I think, with respect, perhaps my colleague Mr Marten ought to answer that question.
48. Ought the aid and trade provision to be administered by your Department?
(Mr Rees.) It is an inviting prospect but I feel we would still probably have to apply the same criteria as are applied at present. I suspect at the end of the day the end result would not be very different.
49. Would you, as a Minister, be hap- pier to have it in your Department?
(Mr Rees.) I am not certain whether I am in the business of empire building but I
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