HC Deb 23 June 1959 vol 607 cc1001-3
7. Mr. Bellenger

asked the Chancellor of the Exchequer what proposals have now been made, either by Commonwealth Governments or Her Majesty's Government in the United Kingdom, to associate Commonwealth countries with a European Free Trade Area.

The Paymaster-General (Mr. Reginald Maudling)

None, Sir.

Mr. Bellenger

Does the right hon. Gentleman recall that he told the House last month that talks—"consultations" I think he called them—were going on between Commonwealth Governments and the United Kingdom Government in relation to the position of the United Kingdom Government with the Free Trade Area? Has the right hon. Gentleman nothing to add to that statement?

Mr. Maudling

We shall continue to keep Commonwealth Governments fully informed on all these matters. No proposal of the kind indicated in the Question has been made by Her Majesty's Government here, or any of the Commonwealth Governments.

12. Mr. Bellenger

asked the Chancellor of the Exchequer what was the outcome of the official conversations at Stockholm amongst the seven non-Common Market Governments, including the United Kingdom; and what future action Her Majesty's Government now propose to take towards a Free Trade Market amongst the seven.

Mr. Maudling

I am circulating in the OFFICIAL REPORT the text of the full communiqué issued on 14th June, to which there is little I can usefully add at this stage. The outcome of the talks in Stockholm was encouraging and Her Majesty's Government are giving careful consideration to the report which officials prepared as the basis for decisions by Ministers at a meeting about the middle of July.

Mr. Bellenger

Relating that Answer to the previous Question I put to the right hon. Gentleman, may I ask whether Commonwealth Governments will be brought in in any way possible, or will be affected, by the negotiations which are now going on?

Mr. Maudling

They have, as I say, been kept fully informed of everything that we are doing in this matter.

Mr. Green

What is a "sensitive industry" in the Free Trade Area?

Mr. Maudling

An industry which is sensitive to competition from other countries within the area.

Mr. Wade

Can the right hon. Gentleman give an assurance that, so far as Britain is concerned, the object of entering into any treaty with the Seven will be to facilitate the ultimate creation of a Common Market for the whole of Europe and not to divide Europe politically and economically into opposing camps?

Mr. Maudling

The expression "Common Market" is unfortunate, used in this connection. Certainly I give an assurance on behalf of Her Majesty's Government—this view is, I know, held by all the other Governments concerned—that one of the main objects is to create a bridge for solution of the problem on a full European basis.

Mr. Woodburn

Would not the right hon. Gentleman consider whether the Prime Minister visiting General de Gaulle to get some softening-up in France's attitude may not be a more direct method of achieving the same purpose?

Mr. Maudling

I will draw my right hon. Friend's attention to that suggestion.

Following in the communiqué:

Another meeting of officials from Austria, Denmark, Norway, Portugal, Sweden, Switzerland and the United Kingdom has been held in Stockholm from 1st to 13th June, 1959.

The officials had been charged by their Governments to discuss the problem of economic cooperation in Europe and to examine, on a non-Committal basis, methods of reopening negotiations with the European Economic Community and the other members of O.E.E.C., in order to remove trade barriers and establish a multilateral association embracing all members of O.E.E.C. In particular, they had been charged with examining the problems involved in creating intimate trading arrangements between the seven countries, what the rules and institutional arrangements of such an association should be, and whether it could be so devised as to promote negotiations for a wider European settlement. Accordingly, officials have elaborated for the consideration of Ministers a draft plan to create, in conformity with their international obligations, such a trading association. In respect of industrial products the plan deals with the abolition of tariffs and quantitive restrictions, rules to ensure fair competition, and rules for identifying the goods which would move freely between the members. The immediate objective would be a reduction of tariffs by 20 per cent. on 1st July, 1960. The plan provides for a special agreement on agriculture. As a first step towards the elaboration of that agreement, there will be discussions as necessary between interested countries on trade in specific agricultural products of importance to exporting countries. Fish and marine products would be treated as an independent problem separately from agriculture. Proposals for a special agreement to achieve freer and increased trade in these products were made, and these will be given careful consideration. The main scope and function of the institutional arrangements within an association have been delineated. The officials have sought to draw up the plan in such a way as to facilitate subsequent negotiations, within the O.E.E.C. with the European Economic Community and the other members of O.E.E.C, some of whom have particular problems calling for special solutions. The report of officials will be submitted to Governments, It is expected that there will be a meeting of Ministers of the seven countries in Stockholm about the middle of July to consider the report, and take decisions on it.