asked the Prime Minister whether His Majesty's Government are continuing to explore the ground with a view to negotiating an economic agreement with the United States of America; if so, whether any progress has been made; and when the period of preliminary exploration will be over and negotiations begun?

As my right hon. Friend the President of the Board of Trade has explained to the House, informal and exploratory discussions have for some time been proceeding with the United States Government with a view to ascertaining whether a basis exists for trade negotiations between the United Kingdom and the United States of America. These discussions are still proceeding, but I cannot say how long they will take or what their outcome will be.

May we take it from the Prime Minister that the Government are, at any rate in principle, favourable to such a proposal?

I would rather leave my answer as it is.