§ The First Secretary of State and Secretary of State for Economic Affairs (Mr. George Brown)I should like to make a short statement about last week's meeting in Bergen of the E.F.T.A. Ministerial Council. As the House knows, Her Majesty's Government were represented at this meeting by my colleagues, the President of the Board of Trade and the Chancellor of the Duchy of Lancaster, and myself.
This was, above all, a meeting about economic collaboration in Europe. All the E.F.T.A. Ministers spoke very frankly about how they saw the question of the relations between E.F.T.A. and its members and the European Economic Community. There was complete and genuine agreement that the Association and its members should press on with their efforts to reduce trade barriers and to bring about the closest possible economic collaboration in Europe.
There was ample recognition of the difficulties, but the strength and unity of these seven European States joined together in the Free Trade Association in pursuing these aims was the most striking impression that my colleagues and I brought home from this meeting. All member Governments promised to remain in close consultation with each other.
The decision of Her Majesty's Government to discontinue the import charge from the end of November was, of course, warmly welcomed by our partners. The Council also discussed and took decisions on a number of important issues dealing with the development and efficient operation of the Association, among which I would particularly mention the progress made in filling out the Association's rules of competition by defining the rights of firms setting up and operating in E.F.T.A. member countries. The Council also approved a proposal to establish an Economic and Social 923 Sub-Committee, which had originated in a suggestion made by the British Trade Union Member of E.F.T.A.'s Consultative Committee.
I took the opportunity to repeat to the Norwegian Minister of Commerce our concern at the retention of a high rate of revenue duty on imported motor cars, and I expressed the hope that a way would be found of extending to motor cars some benefit from the E.F.T.A. tariff reductions. Mr. Willoch agreed to consider this matter further.
There was widespread pleasure at Bergen that, in December, E.F.T.A. will achieve its industrial free trade objective ahead of time. In short, E.F.T.A. morale was high, and its liveliness apparent; and altogether this was a fruitful international meeting of partners and friends.
The text of the communiqué will be circulated in the OFFICIAL REPORT.
§ Lord BalnielAs audiences now in Bergen, Stockholm and Strasbourg have all been given the most forthcoming speeches by British Ministers urging the importance of integration with the European Economic Community, does not the right hon. Gentleman think that the British public, in their turn—and his back benchers—should be given an equally clear statement by the Prime Minister as to what are British objectives and aims in relation to the European Economic Community?
Can the First Secretary tell us what is the position of the Austrian Government? Are they acting in concert with the other E.F.T.A. colleagues? Further, does the London Agreement of 1961, whereby the countries of the E.F.T.A. agreed to act in unison, still hold good?
§ Mr. BrownMy right hon. Friends the Prime Minister and the Foreign Secretary—and certainly I myself—have made a number of speeches in this country covering the same ground that we covered in speeches abroad. I am sure that each one of us would be very happy to repeat those speeches, and circulate them if hon. Members would like to see what we have said elsewhere. I can assure the noble Lord that the speeches made in this country and those made abroad—certainly by this Government—tally. [HON. MEMBERS: "Oh."] That is, in itself, 924 a very considerable change from one of the previous Governments.
Her Majesty's Government are keeping in the closest touch and acting in concert with partners, and Dr. Bock made a clear statement to us at Bergen on the present situation and the apparent likely course of events.
Finally, I assured my E.F.T.A. colleagues that in our probing and future action we should act in the very closest contact, concert and consultation with our partners. This was repeated by them in their turn, and was found acceptable to everyone.
§ Mr. ShinwellDoes my right hon. Friend understand that his efforts to promote the reduction of trade barriers and increase economic understanding will receive every encouragement from all quarters? But does he also understand that if he is being pushed into closer political integration which will involve us in the acceptance of a supranational Government and a European Parliament to which Westminster would be subordinated, we have very strong reservations?
§ Mr. BrownI should first thank my right hon. Friend for the characteristically friendly opening part of his supplementary question. As to the second part, may I, in turn, express the hope that he is not being in any way misled by the front page of a Sunday newspaper yesterday? It was exceptionally silly, even by that newspaper's own standards.
Knowing my right hon. Friend as well as I do, I know that he would not join in the hysteria it showed at the mere suggestion that, at a time when the world is so full of hungry, poor and undeveloped peoples, the European Continent should strengthen itself by getting rid of its dividing weaknesses in order to play a better and a fuller part in contributing to the development of the world.
§ Mr. Bruce-GardyneIn connection with reports in the weekend Press, can the First Secretary confirm that the Government are interested in eliminating barriers in Western Europe at this stage, and do not seek to complicate the issue by bringing in the countries of Eastern Europe? [HON. MEMBERS: "Why not?"] Can the right hon. Gentleman also tell the House whether he asked for or gave an 925 assurance in Bergen that the import surcharge would not be replaced by quotas?
§ Mr. BrownOn the first part of that supplementary question, that is precisely what I thought was so silly in the newspaper yesterday. Of course one wants to reduce and get rid of barriers to trade and development anywhere in Europe. It is silly I think, to talk as though Europe only goes as far as the present Iron Curtain. There are countries in Eastern Europe which are very anxious at this moment to develop their trade with Western Europe and one should encourage that to continue.
On the question of any undertaking about the surcharge, nothing more was said than I have already reported to the House.
§ Mr. DalyellWill the negotiations on cars, which we welcome, also cover heavy vehicles?
§ Mr. BrownI was talking about motor cars in particular, but it applies to any of this area where the revenue duties are, in fact, operating against a greater advance in trade.
§ Sir Alec Douglas-HomeSo that we may judge whether the right hon. Gentleman's claim is right, that his speeches abroad tally with those of his colleagues at home, could he place in the Library a copy of his evening speech in Bergen? Secondly, can he tell us what diplomatic action is being taken in Europe to follow all the many speeches which have been made?
§ Mr. BrownAs the right hon. Gentleman knows, my right hon. Friend the Chancellor of the Duchy of Lancaster and I have been charged by the Government with the conduct of a wide exercise in probing. That is going on by the various means open to us and we shall continue to do it.
On the first part of the right hon. Gentleman's supplementary question, like so many after-dinner speeches, all texts are neither prepared, nor, happily, kept. I can only assure the right hon. Gentleman that in this case, as in all cases affecting him and me, the sentiments were widely accepted and appreciated.
§ Mr. HefferIs my right hon. Friend aware that many hon. Members on this side of the House are most anxious to 926 see wider European unity, both politically and economically? But is he also aware that we want to see the Eastern European countries drawn into this wider European community so that we can break down the national barriers in Europe and get some positive achievment on the unity of Europe?
§ Mr. BrownI rather thought I had answered that and had indicated sympathy with the start which has been made. I took pains to refer to this not only in Bergen, but in rather more detail in Stockholm where this was very much a matter on the agenda.
§ Mr. Biggs-DavisonDoes the right hon. Gentleman's tirade against the Sunday Express mean that he made no speech or statement during his trip to the effect that his view of a United Europe, including Britain, would be a supranational federation?
§ Mr. ThorpeMay I urge the right hon. Gentleman to continue eating fruitful dinners abroad and at home? May I ask him two questions? Do we take it that the interest which Austria is expressing indicates that many of the E.F.T.A. difficulties are now receding to membership of the Community? Secondly, did his speech relating to political unity indicate that Her Majesty's Government are prepared, subject to negotiations, to accept political involvement in joining the Treaty of Rome?
§ Mr. BrownI shall have to be careful about fruitful dinners I eat, because of my experience recently, but I will do the best I can.
On the second point, yes. I do not want to exaggerate, but in some ways I think that the difficulties which members of E.F.T.A. saw a few years ago about membership of or association with the E.E.C. seem less inhibiting now than they did then. I think that this was true not only of Austria, but was the fairly commonly held view around the conference table at Bergen.
As to the last part of the question, I think that we must let the probing go on and see what we get, where we go and what emerges from that.
§ Mr. HeathMay I ask the right hon. Gentleman two questions? First, on the Austrian position, is it not correct that if the Austrian negotiations are successful in establishing an association between Austria and the Economic Community Austria will not be able to remain a member of E.F.T.A.? Will the right hon. Gentleman recall the London Agreement of June, 1961, covered not only consultation for exploratory discussions, but also in the event of negotiations, all members of E.F.T.A. would have to become members of or associated with the Community at the same time? Do the Government still adhere to that?
§ Mr. BrownOn the first part of the question, I do not think that it at all follows that if the Austrian negotiations are brought to a successful conclusion—it is much too early to say whether they will be or not; and my Austrian colleague made clear the nature of the difficulties—it would not be possible to have some form of dual membership or association. I took the opportunity at Bergen to say that I thought that that would be a happier outcome than some others, but that we must wait and see how the negotiations follow. No doubt we shall have a chance of hearing more about it at the autumn meeting of the Association.
On the second part of the question, I do not go beyond what I said earlier, which was the fullest assurance, repeated in their turn by other members of E.F.T.A. Everyone there was satisfied on this.
§
Following is the communiqué:
The E.F.T.A. Council and the Joint Council of E.F.T.A. and Finland met at Ministerial level in Bergen on 12th and 13th May, 1966, under the chairmanship of Mr. Kaare Willoch, the Norwegian Minister of Commerce and Shipping.
Ministers reviewed the progress of the Association since the Ministerial meeting in Copenhagen last October. They noted the great strides taken by E.F.T.A. trade since the inception of the Association and looked forward to still more progress when industrial tariffs are finally eliminated in December, 1966, three years ahead of the original target. They greeted with particular satisfaction the decision of the United Kingdom Government not to prolong the import charge after November, 1966. They welcomed this decision as a sign of the strengthening of the British economy and an encouragement to the progress of the Association.
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The E.F.T.A. Council directed their main attention to the problems of European integration and found themselves in agreement on the fundamental issues. It was recalled that E.F.T.A. was designed to promote economic unity in Europe. E.F.T.A. had already invited the E.E.C. member countries to take part in a dialogue on the pursuit of policies leading to the mutual growth of trade and the expansion of their economies. This invitation still stands. The Ministers remained convinced of the benefits which an integration of the European economies would confer on Europe itself and indeed the world as a whole. They pledged their Governments to pursue, by all available means, the objective of such an integration. Their Governments would keep each other fully informed of their individual efforts and would remain in close consultation at all stages. A comprehensive report on Austria's negotiations with the E.E.C. was given by the Austrian delegation. Ministers decided that the Secretariat should review and analyse the impact of the divergence between the two trading groups with its waste of existing and potential resources.
The Kennedy Round of tariff negotiations in the G.A.T.T. was discussed in the Joint Council. The Ministers noted with deep concern the slow rate of progress being made. They stressed the overwhelming importance of these negotiations both in the interest of expanding world trade and of mitigating the consequences of the division in Europe. They pledged themselves to do everything in their power to facilitate a successful conclusion of the negotiations.
A review was also conducted of the current business of the Association. Decisions were taken on the following matters:
At the invitation of the Portuguese Government, the next meeting will be held in Lisbon on 27/28 October, 1966.
*Not circulated.