HC Deb 17 April 1958 vol 586 cc335-6
26. Mr. Holt

asked the Chancellor of the Exchequer if he will make a statement on the progress of the negotiations for the setting up of a European Free Trade Area.

The Paymaster-General (Mr. Reginald Maudling)

There have been no major developments since the House debated this subject on 28th March.

Mr. Holt

Are not the Government very concerned that these negotiations appear to have come to a deadlock? To what extent are they prepared to go in making concessions to see that this proposal, which will have far-reaching, beneficial effects to the United Kingdom, does not come to a dead end?

Mr. Maudling

I do not accept that negotiations have reached a deadlock. They are certainly going through a difficult stage, but that was not unexpected. I think it would be an unwise form of negotiation to announce in advance what concessions we may be prepared to make.

Mr. Bellenger

Does the right hon. Gentleman adhere to the point of view which he has expressed that unless the negotiations reach some sort of conclusion by July the European Free Trade Area, with its concomitant reduction of tariffs on 1st January, will be of no use to this country?

Mr. Maudling

That is not exactly what I said. What I said, and would like to repeat, was that unless we can reach agreement on the major matters of substance by the end of July—which is perfectly possible—there is great danger that support for the whole idea in this country and in other countries may dwindle away to a dangerous extent.