§ 14 and 15. Mr. Bellengerasked the Chancellor of the Exchequer (1) what progress has been made in discussions with other countries in the Organisation for European Economic Co-operation towards a compromise solution of the European Free Trade Area problem;
(2) whether, in view of the report just published by the European Economic Commission, it is Her Majesty's Government's intention to continue their endeavours to promote a Free Trade Area in association with the Common Market Community.
§ The Paymaster-General (Mr. Reginald Maudling)Although the European Economic Commission's report has been published, it has not, I understand, been approved by the Six Governments and is to be the subject of further study. As I explained in the debate on 12th February, Her Majesty's Government still consider a European Free Trade Area to be the only fully satisfactory solution to European trade problems and they remain in constant touch with other members of the Organisation for European Economic Co-operation with the object of facilitating negotiations as and when cirumstances permit.
§ Mr. BellengerDoes not the right hon. Gentleman realise that the Six, especially France, are no longer interested in the original Free Trade Area proposals which the right hon. Gentleman assiduously pursued in his negotiations last year? Would he, therefore, take the initiative in trying to come to some compromise arrangements with the Six as soon as possible? If not, things will go from bad to worse.
§ Mr. MaudlingThe negotiations were suspended in the latter part of last year because the prevous basis of negotiations, namely, unanimous determination to have a Free Trade Area, no longer existed and that position, as the right hon. Gentleman suggests, is still very much the case. For the time being, we are rightly concentrating on short-term arrangements or a modus vivendi in negotiations with France.
Mr. H. WilsonCan the right hon. Gentleman tell us what has transpired 1494 in meetings held with those members of O.E.E.C. who are not members of the European Community, since it is understood that there was such a meeting in Scandinavia a few days ago?
§ Mr. MaudlingThere have been several meetings of a confidential character, and I cannot disclose what took place. Broadly speaking, we have been very concerned to try to keep in constant touch with other European countries outside the Six in order to co-ordinate our views for our mutual benefit.
Mr. WilsonIs the right hon. Gentleman aware that for two years we gave him a free hand? Does he appreciate that little came out of it and that the statement which he has recalled from the debate of 12th February is now six weeks old and was pretty well out-of-date even then? Is the right hon. Gentleman exclusively following the idea of a Free Trade Area or is he discussing with other European countries alternative arrangements?
§ Mr. MaudlingI made clear in the debate that we are considering all possible alternatives. We do not want to make suggestions at this time which are no good to us and will not produce a solution.