Russian proposal and trade arrangements
Kelly asked about a Russian smelter proposal and possible trade benefits; Burke said the proposal was being examined after an exchange arising from a December 1977 discussion with the Russian Ambassador. He could not say who initiated it or commit to involving Córas Tráchtála, but noted the Government’s aim of improving trade balances.
I want to ask the Minister two questions and I will join them together. Is it true, as reported, that the Minister's Department have received a proposal from a Soviet source in regard to the building of this smelter? If it is true, or if the Minister envisages that a proposal of this kind might be officially received, would his Department consider trying any possible arrangement with a foreign source, whether the Soviets or anybody else, onto the kind of trade advantage, the kind of trade strings, which the Finns succeeded lately in tying onto a large contract with the British Aircraft Corporation to re-equip their air force?
Comment on this
The Russian proposal is a separate question but I have the information here and I can give it to the Deputy. There has been an exchange of letters between the Department and the USSR Embassy and a commercial consul here. The Minister has directed that the Russian proposals be examined and the IDA have been so informed. Obviously the Minister wishes to keep all possibilities in mind in considering the decision to be taken on the zinc smelter project and further possibilities of lead smelting also.
Comment on this
Could I ask the Minister two quick questions? Could he tell the House who initiated the correspondence he referred to? Was it the Soviets who initiated it. or was it we who wrote to them? That is one question. I have another.
Comment on this
It arose out of a discussion between the Minister and the Russian Ambassador in December 1977. The question arose as to a possible Russian interest in an Irish zinc smelter project.
Comment on this
Is the House to take it that the proposal came from the Russian side? Even in a conversation someone draws down a subject first.
Comment on this
Would the Minister consider bringing Córas Tráchtála into the picture even at this stage to see if our very large unfavourable trade balance with the Soviets could be put right as a side benefit of this contract?
Comment on this
I could not make a definite statement on that. Obviously it is Government policy if we have an unfavourable trade balance with any country to improve that situation. The Minister has expressed very strong views on this in the past.