China: Mineral Acquisitions

Lord Ashdown of Norton-sub-Hamdon Excerpts

Thursday 12th July 2012 Lords Chamber

[Lord Howell of Guildford]

Of course, these dangers of monopoly control exist in all extractive industries, particularly for scarce resources. We have to watch those matters very carefully. What might be behind the noble Lord’s question is the issue of rare earths, the use of which is essential in practically every mobile telephone and the production of which was very much under Chinese control until recently. However, any attempt to limit the export of rare earths and thereby to manipulate price has been met by the discovery and development of rare earths elsewhere. Therefore, provided that we watch these matters carefully, competition can usually weaken the monopolies. I am not saying that it is a Chinese aim to monopolise these resources, but in the case of rare earths that was a danger.

[Lord Ashdown of Norton-sub-Hamdon]

My Lords, does my noble friend agree that this country is hardly in the best historical position to lecture others about the morality of taking raw materials from Africa? In so far as we did so, if we had a policy in this area it might be better directed to advising others not to do it as we did it in the last century.

[Lord Howell of Guildford]

I think we all agree that we do not want to go around lecturing and hectoring, but we have our own values, we have had our own experience, and we have made our own errors in the past. It is possible that by sharing our values and not reneging on them in any way we can help other countries avoid some of the mistakes that we made. I do not think that there is anything much to apologise for in working with other countries to ensure that today’s and tomorrow’s standards for the extractive industries are developed and maintained. I believe that this is a matter that the Chinese Government, as a responsible member of the World Trade Organisation, fully recognise.