HC Deb 30 July 1958 vol 592 cc1369-72
The Paymaster-General (Mr. Reginald Maudling)

I should like, with permission, to make a statement about the present state of the negotiations for a European Free Trade Area.

In the absence of proposals which were awaited from the six countries of the European Economic Community, the negotiations had been virtually suspended since the end of March, when the last meeting of the Inter-Governmental Committee took place.

The Committee was able to resume its discussions at a meeting held in Paris on 24th and 25th July. It then became clear that all the member countries were now determined to proceed with the negotiations, and to co-operate in the establishment of a Free Trade Area. Detailed directives were issued for the further study of the problems which arise from the differing external tariffs of the member countries, and for the examination of the special conditions which should apply to the less developed countries.

In addition, the members of the European Economic Community put forward proposals on agriculture which will be the subject of further study. The Committee agreed to hold a more prolonged session in the second half of October, when some of the results of the expert work now proceeding will be available, and when it is hoped that substantial progress will be made.

Although the main problems have by no means been overcome yet, a new step has been made towards a satisfactory outcome of the negotiations.

Mr. H. Wilson

The House will be grateful to the Paymaster-General in that, for once, he has taken the House into his confidence—[HON. MEMBERS: "Oh."]—about the course of the difficult and tortuous negotiations. We have asked for a statement many times in the past, and have not had one.

Will the right hon. Gentleman say whether the Government have made any commitments, or any offer on any of the matters on which the Prime Minister gave such clear undertakings in the statement of 26th November, 1956, particularly with regard to agriculture? Has there been any change at all in the Government's position on those matters? Would he give an undertaking that, before the Government do change their position in negotiation on any of the matters referred to by the Prime Minister, the House will have a chance of debating it?

Mr. Maudling

I will certainly say that the Government have in no way departed from the position publicly taken by my right hon. Friend the Prime Minister, and in other statements. I think that the right hon. Gentleman the Member for Huyton (Mr. H. Wilson) will recognise that one cannot conduct negotiations if one cannot make any offer, or suggestion for discussion without disclosing it in public, but I will certainly bear in mind what the right hon. Gentleman says.

Mr. Osborne

Can my right hon. Friend give the House the assurance that the Prime Minister gave originally: that what he promised then in regard to the agricultural interests of this country will be in no way whittled away?

Mr. Maudling

Yes, Sir. We made it quite clear from the start that agriculture could not be included in a Free Trade Area. What is now happening is that we are negotiating, as the House is aware, a Free Trade Area agreement and, simultaneously but quite separately and on different principles, an agreement for improving European trade in agricultural products. That is the position.

Mr. J. Hynd

Will the Paymaster-General give an assurance that the rest of industry will not be sacrificed on the altar of agricultural subsidies? Will he also make a statement about the prospects of the Free Trade Area, if the negotiations are successful, coming into operation concurrently with the Common Market—which was the original plan—or whether special arrangements have been made to overcame any difficulties in that respect?

Mr. Maudling

There certainly would not be any question of sacrificing industry to agriculture. I do not think that that difficulty or danger would arise. Certainly, I do not think that the agricultural community would wish it, but I see no reason why it should arise.

I think that it is now clear that we cannot get a documented treaty signed and ratified by the end of the year. Nevertheless, it is still possible—and I am still hopeful of achieving it—that we shall get substantial agreement by the end of the year.

Mr. Longden

Is my right hon. Friend aware that he fully deserves the congratulations of the whole House on the patience and diplomatic skill that he has shown in these very difficult negotiations?

Mr. Holt

Does the Paymaster-General think that there is any chance of an interim agreement, starting at the beginning of next year? He spoke of studying the external tariffs. Is Imperial Preference still a stumbling-block to the successful conclusion of the negotiations? Would he not agree that it is not in the interests either of Great Britain or of the Commonwealth that we should sacrifice the "open door" principle of imports into this country from the Commonwealth, but that it could be in the interests of both Great Britain and the Commonwealth to go some way in sacrificing some of our Imperial Preference within the Commonwealth if this would bring the negotiations in Europe to a successful conclusion?

Mr. Maudling

The possibility of a provisional agreement was suggested at Paris last week by the European Economic Commission, but it was the general feeling of those present that it was a little early, until we had made more progress on the substantial negotiations, to take a view on a provisional agreement.

With regard to Commonwealth Preference, I have made the position of the Government clear on more than one occasion. We see nothing any more inconsistent between Commonwealth Preference and a Free Trade Area than we see between Commonwealth Preference and the E.P.U. and the existing European economic arrangements.

Mr. Woodburn

Is the right hon. Gentleman aware that a good deal of trouble has arisen from the name given to the European Free Trade Area? The French delegates especially think that the name has caused more trouble than all the other differences that exist. Has any proposal been made for a more appropriate name?

Mr. Maudling

There is a good deal in that suggestion. All suggestions are welcome.