HC Deb 20 November 1958 vol 595 cc1317-8
28. Mr. Bellenger

asked the Chancellor of the Exchequer what indication has been given by Her Majesty's Government to the Common Market nations as to the probable effect on British tariff policy if, on 1st January next, tariffs are reduced among the Common Market nations without any prior agreement on a wider free trade area.

The Paymaster-General (Mr. Reginald Maudling)

I cannot usefully add to the Answer which I gave to the hon. Member for Pembroke (Mr. Donnelly) on Tuesday last.

Mr. Bellenger

In view of the disclosures which are now being made in other European Parliaments, particularly, for example, in Sweden, does not the right hon. Gentleman think that at least the Members of the House of Commons should know whether the liberalisation policy of Her Majesty's Government is likely to be effective, if agreement is not reached by 1st January?

Mr. Maudling

We have made it quite clear to all concerned that if there is to be discrimination in Europe from 1st January, there may be serious consequences, but I think that anything in the nature of a threat would be most unwise.

Mr. H. Wilson

Has not the right hon. Gentleman considered the suggestion put from these benches on Monday that he should now convene a meeting with the eleven O.E.E.C. countries which are not members of the Common Market, to see if it is possible to work out a common policy to put to the Six?

Mr. Maudling

We have been having meetings with the other countries concerned, but the question of putting forward an alternative policy is not one for this moment. The problem now is that the situation has been very confused by the statement of the French Government, and I think it is important that the situation should be clarified by us receiving from the six countries a statement of where they stand at the present moment.

Mr. H. Wilson

May I ask the right hon. Gentleman whether he has closed his mind to the suggestion made in the country that arrangements should be worked out for a free trade area between this country and Scandinavia, Austria and certain other countries outside the Six; or does he entirely rule out any possible advantage it might have in strengthening his own negotiating position, which has been weak in recent months?

Mr. Maudling

I will not comment on the weakness of my negotiating position, but certainly our minds are not closed to the possibility. The Government's view has been and remains that any alternative to the Free Trade Area would be a second-best, and we still want to concentrate on the first-best.