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Trade Development
15. Dr. Spink: To ask the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement on the extent to which his Department has achieved its trade development responsibilities. [868]
Mr. Hanley: Commercial work is now the Foreign and Commonwealth Office's largest single area of activity overseas, involving 35 per cent. of the time of our front line staff. The volume of UK exports grew by 11 per cent. in 1994 against a 9 per cent. increase in the volume of total world trade. Foreign and Commonwealth Office posts overseas play an important role in helping UK exporters to achieve successes such as these and in helping inward investment.
Dr. Spink: I am grateful to my right hon. Friend for that answer. Will he continue to ensure that Foreign and Commonwealth Office help is focused on smaller companies that want to break into export markets and that major companies are helped because they create so many new jobs for Britain?
Mr. Hanley: I thoroughly agree with my hon. Friend. The competitiveness White Paper stated that 100,000 UK companies export, and we set a target of 30,000 new companies joining world exporters by 2000. The majority of those 30,000 companies are bound to be small and medium-sized enterprises. The Foreign Office, through our commercial staff overseas, devotes much of its time to providing market information and contacts to small and medium-sized enterprises--SMEs--which they could not obtain nearly as cost-effectively anywhere else. Around 60 per cent. of companies that take part in outward trade missions that are supported by our posts overseas are smaller companies, so I am pleased that my hon. Friend takes such a great interest in this matter. Our SMEs are benefiting from the help that the Foreign and Commonwealth Office can give them.
Mr. Campbell-Savours: Do not our trade development responsibilities include making representations to the American Government about the conduct of the Campbell Soups company from Campbell, New Jersey, which closed down a highly profitable manufacturing plant in my constituency? Will the Minister join me in asking the British people to boycott the products of that company throughout the country so that it learns the lesson that it cannot treat our people like rubbish, as it is at the moment?
Mr. Hanley: I not only watched the hon. Gentleman's Adjournment debate on the subject of Campbell Soups, but read it afterwards. I was interested by what he had to say, but it is not part of my responsibility to make representations to the United States on that matter.
Sir Roger Moate: Does my right hon. Friend agree that great opportunities exist for trade and development in the idea of the transatlantic free trade area, encompassing an enlarged European Community, the countries of the European economic area and the north American free trade area, which is so strongly supported already by my
right hon. and learned Friend the Foreign Secretary and the Government? Can my right hon. Friend say when practical negotiations might start and confirm that, even though the negotiations might be conducted by the European Community, Britain will have a significant role in such negotiations?
Mr. Hanley: I thank my hon. Friend for that question. The EU-US summit will deal with that matter. I agree with my right hon. and learned Friend the Foreign Secretary who, as he has said so firmly in recent speeches, is totally committed--as are Her Majesty's Government--on this matter.
Israel
16. Mrs. Roche: To ask the Secretary of State for Foreign and Commonwealth Affairs when he last met representatives of the Israeli Government; and if he will make a statement. [869]
Mr. Hanley: My right hon. and learned Friend the Foreign Secretary met Shimon Peres in Israel on 9 November. They discussed the middle east peace process, following the assassination of Yitzhak Rabin. Shimon Peres reiterated his commitment to continue to work for peace and he has, of course, our full support.
Mrs. Roche: I thank the Minister for that reply. Perhaps I may press him a little further about the peace accord with Syria. In response to an earlier question, the Foreign Secretary mentioned progress with the peace accord with Syria. Will the Minister give us some indication of how matters are progressing? Does he agree that a comprehensive peace accord, which covered Syria, in the middle east would be the greatest tribute that could be paid to the memory of Yitzhak Rabin?
Mr. Hanley: I agree with the hon. Lady. My right hon. and learned Friend spoke to the Syrian Foreign Minister yesterday in Barcelona and he spoke with President Assad in Damascus immediately after Mr. Rabin's funeral. The signs are better than they have been for some time that the Syrian track will be reconvened. More countries than ever before are expressing their good will and I hope that the events to which the hon. Lady referred will come to pass.
Mr. Hawkins: Does my right hon. Friend agree that it is a positive sign that, following the tragic assassination of President Rabin, leaders of Arab states who had never visited Jerusalem travelled there to attend his funeral? That should encourage the progress of the peace process, which is greatly welcomed.
Mr. Hanley: My hon. Friend is absolutely right. He has put his finger on one of the reasons why many people are now more hopeful about the peace process. The visits to Jerusalem by King Hussein of Jordan and representatives of the states of Oman and Morocco show that the Arab world wants as much as Israel and its immediate neighbours to see peace.
Mr. Gunnell: I am sure that, following his meeting on 9 November, the Foreign Secretary congratulated the Israeli Government on their early withdrawal of the troops to which he has referred already. Does the Minister agree that, if the elections to the Palestine National Assembly on 20 January are to be free and fair, it is very important
that they do not take place in the presence of occupying troops? Will the Government therefore do everything possible to encourage the Israeli Government to speed up the process of withdrawal so that the elections can take place in a constructive atmosphere?
Mr. Hanley: Yes. I can confirm that the British Government are committed to the success of the Palestinian elections. The withdrawal of the forces that the hon. Gentleman mentioned is extremely important. The elections are due to take place on 20 January, as agreed by the Palestine National Authority and the Israeli Government, and the European Union co-ordinating international observer group will be present. Four of the 30 staff in the co-ordinating unit are British and Britain is providing major input to the core of observers. Six long-term observers arrived on 9 November and are advising the Palestinians about policing the elections. I am grateful for the hon. Gentleman's question and for the good will that it implies.
India
17. Mr. Merchant: To ask the Secretary of State for Foreign and Commonwealth Affairs what plans he has to visit India to discuss the United Kingdom's relations with India. [870]
Mr. Hanley: My right hon. and learned Friend the Foreign Secretary had extensive discussions with the Indian Foreign Minister, Mr. Mukherjee, last week. He hopes to find an early opportunity to visit India, as I did last month.
Mr. Merchant: In view of the current unstable situation in Kashmir, will my right hon. Friend update the House on the situation with regard to the four hostages-- two of whom are British--who are at present in the hands of political extremists?
Mr. Hanley: I am grateful to my hon. Friend for his concern. I am sure that all right hon. and hon. Members want the four hostages to be released as soon as possible. We have no further news about them at the moment. We are grateful to the Indian Government and to their various authorities which are helping to try to secure the release of the hostages.
Representatives of the group of four nations--our high commissioner and the American, German and Norwegian ambassadors--are working very hard and very well together to try to secure the release of the hostages. This morning I saw a report on Teletext that one of the hostages is ill. If a hostage is unwell--we have no proof that that is the case--the best thing that the hostage-takers can do is release him. The four hostages should be released now. No purpose is served by their continued captivity and, in the name of humanity, they should be set free.
Mr. Pike:
It is clear that everyone accepts that the release of the hostages is essential and that keeping them plays no part in helping to end the position in Kashmir. Will the Minister ensure that the Indian Government are aware that people in this country believe that the Indian Government should be the first ones to take steps to end that long-standing problem? That might be of tremendous benefit, not only to India but to Pakistan and the whole of that part of the world.
Mr. Hanley:
We believe that the best way to make progress on Kashmir would be a combination of three
While we are talking about the hostages, I pay tribute to their courage and the courage of their families, who have been remarkable under intense pressure.
Lady Olga Maitland:
What response has my right hon. Friend had from the Indian Government to his efforts to persuade them to improve their relations with Pakistan? Is he aware that, because relations are poor, tensions are high and Pakistan is being pushed to spend a disproportionate amount of its resources on the armed services?
Mr. Hanley:
I agree with my hon. Friend that nations tend to spend far more than they need to on building up their armed forces because of bad relations with their neighbours. This is a classic case in point.
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