§ Q1. Mr. Henigasked the Prime Minister what official contacts the British Government have had with the Commission of the European Economic Community during the last three months; and whether he will seek to hold talks with this Commission as well as with the member Governments of the European Economic Community.
§ The Prime Minister (Mr. Harold Wilson)Diplomatic contact through the United Kingdom delegation, and also, at Ministerial level, through the quarterly ministerial meeting of the Council of Western European Union on 30th September. I hope to meet representatives of the Commission at some stage in the forthcoming discussions.
§ Mr. HenigIs my right hon. Friend aware that in the event of formal negotiations for British accession to the E.E.C. the attitude of the Commission will be very important indeed on many important technical matters? Would he therefore ensure that Her Majesty's Government do not give any reason to suppose that they 243 share the attitude of the French Government on the future rôle of the Commission and the revision of the Community institutions?
§ The Prime MinisterI am well aware of the importance of the Commission on a continuing basis, particularly if the negotiations are involved, but we have not yet got to the stage of negotiations. However, as I have said, we have continuing diplomatic contact, and also, I hope that there will be a meeting at some stage in the visits to the Heads of Government.
§ Q2. Mr. Ridleyasked the Prime Minister if he will place in the Library a copy of his calculations leading up to his estimate that it will cost £175 million to £250 million in foreign exchange to implement the agricultural policy of the Common Market.
§ The Prime MinisterNo, Sir. I do not think it would help any future negotiations to go further than I have already in describing the basis of this calculation.
§ Mr. RidleyIs the Prime Minister aware that this whole financial regulation will have to be renegotiated in 1970 and that he should be able to make a very much better bargain than the £175 to £250 million which he has estimated? Surely it would be for the convenience of the House if he were to give the basis of his calculations so that hon. Members may check and comment on them.
§ The Prime MinisterHon. Members are perfectly free to check. I strongly qualified these figures by what I said, that they are based on present prices and present world prices. I indicated that many experts think that world prices will rise and therefore narrow the gap. It is anyone's guess as to what will happen to the internal prices in the Common Market.
§ Mr. GodberWould the Prime Minister agree that, whatever the figure may be, it can be largely mitigated by a real programme of agricultural expansion in this country and that this would be right whether we go into the Common Market or not? Would he therefore initiate such a policy?
§ The Prime MinisterThis has always been a fact. I agree with the right hon. Gentleman that there are two important 244 variables in these calculations. That is one, and the second relates to the prices which we have to pay internally for our imports from third countries and the Commission's prices.
§ Mr. StodartWould it not be very difficult for the Prime Minister to achieve an expansion of the nature suggested by my right hon. Friend in view of the well-known hostility to the Common Market negotiations of his right hon. Friend the Minister of Agriculture?
§ The Prime MinisterNo, Sir. I think that where there is hostility in the matter of agricultural policy it is to be found most among many of the farmers themselves. [HON. MEMBERS: "Oh."] I said, "many of the farmers themselves". The calculations which we have made have been to some extent queried by the National Farmers' Union in its own official pamphlet on this question. But certainly recent steps taken in agricultural policy are designed to secure a bigger expansion of home production here. I fully agree with the objective set out by the right hon. Gentleman, even though he never did very much to secure it.
§ Mr. John HyndIs my right hon. Friend aware that a representative of the Commission has stated that the amount of levy which might be required of this country would be no higher than that paid by Germany? Would not that make an enormous difference in favour of our balance of payments?
§ The Prime MinisterI am aware of these statements. They are all relevant. I do not think that any of them leads to the conclusion that I should publish all the details of these calculations which have been made against the background I have described. But it is a fact that one of the calculations we have to make relates to the higher cost of imports from the Community compared with imports from the Commonwealth and the very high levy figures which would be involved on food imports from third countries which would then go back across the exchanges into the Guidance and Guarantee Fund.
§ Q4. Mr. Turtonasked the Prime Minister if he will now invite to this country the Prime Ministers of Australia and New Zealand in order to discuss with them his projected tour of Western Europe.
§ Q9. Mr. William Hamiltonasked the Prime Minister whether he will visit those members of the Commonwealth most likely to be affected by a British entry to the European Economic Community.
§ The Prime MinisterI would refer hon. Members to my Answers to Questions by the hon. Member for Banbury (Mr. Marten) on the 6th of December. [Vol. 737, c. 1148.]
§ Mr. TurtonIs the Prime Minister aware that, notwithstanding the statements he made in 1962, there is mounting suspicion in Australia and New Zealand that their interests may be betrayed during his tour of Europe? Will he, therefore, treat the Prime Ministers of these two countries no less well than the Prime Ministers of the E.F.T.A. countries, and have talks with them before his tour begins?
§ The Prime MinisterI stated on 6th December our plans about maintaining contact, and I am in close contact with the Prime Ministers of these countries. I do not accept the statement that there is among the Prime Ministers or the Governments of those countries the suspicion which the right hon. Gentleman has mentioned, and I assure him, in view of his touching reference to what I said in the past, that our concern for the Commonwealth will be better demonstrated than on past occasions.
§ Mr. William HamiltonAs there is a good deal of public interest in the need to preserve the interests of the Commonwealth, and certainly on this side we would support that, will my right hon. Friend consider convening at an early date a meeting of at least trade and finance Ministers of the Commonwealth, either in London or somewhere else in the Commonwealth, to debate the implications of Britain joining the E.C.C.?
§ The Prime MinisterI have dealt with this question. As I said then, at the right moment—and we have not reached that—it would be right to have discussions with the Prime Ministers of the countries principally concerned. By no means all the Commonwealth, in fact only a small proportion of the number of Commonwealth countries, is involved directly, and this will be done either by inviting them to London, or by visits by some of my right 246 hon. Friends to discuss this question with them.
§ Mr. BraineWill the Prime Minister give the House an assurance that, at a time when Britain's impending entry into the Common Market may cause some strain on our Commonwealth relationships, he attaches the highest possible importance to the maintenance of the closest liaison on all matters at all times with our two sister British nations on the other side of the world?
§ The Prime MinisterI always have attached the highest priority to that, and will continue to do so, not least during this period when we are involved in these discussions.
§ Mr. MaclennanWill my right hon. Friend take the earliest possible opportunity in the discussions, particularly with the New Zealand Prime Minister, to reconsider the New Zealand trade agreement, both to facilitate our entry into the Common Market and to reassure our agricultural industry, particularly the livestock section, that its future will not be hindered or hampered by this agreement.
§ The Prime MinisterI think that hon. Members on both sides of the House, whatever their other differences on Common Market questions, have always recognised the special case of New Zealand. I remember the speeches which we all made four years ago, and the very high dependence of New Zealand on the British market. I am sure that no one would wish to see New Zealand's position prejudiced in the negotiations, still less prejudiced in advance of them by any renegotiation of an agreement only just concluded.