§ Q1. Mr. Tim Rentonasked the Prime Minister when he next plans to meet the EEC Heads of Government.
§ The Prime Minister (Mr. Harold Wilson)Arrangements are being made for a meeting of Heads of Community Governments in Brussels on 16th–17th July.
§ Mr. RentonAt that meeting in July, how does the Prime Minister hope to convince his European counterparts of his intention to play a full and constructive part in Community policies when at least three of his Secretaries of State most directly involved—namely, those of Trade, Energy and Industry—have made public their hostility to the Community? Surely, for the right hon. Gentleman's Government to be credible in Europe at least the pack needs to be shuffled and re-dealt.
§ The Prime MinisterUnfortunately for the arguments of the hon. Gentleman, which describes a situation which ended last Thursday, the Heads of Government of the Community countries do not agree with his assessment of the position in this country. I think they have got it 234 rather more clear in their minds than he has in his.
§ Mr. WatkinsonWill my right hon. Friend raise with the French President the question of his recent speech in which he advocated a two-tier structure in the EEC, echoing the comments of ex-Chancellor Brandt? What is the Government's attitude to this policy line of the French President? Will my right hon. Friend say that he is opposed to it?
§ The Prime MinisterI have made clear all along that decisions are taken in the EEC at the Council of Ministers or at Heads of Government summits. There are no two-tier arrangements. Should the question of any speech of a Head of Government appear on the agenda, I shall make appropriate comments on it.
§ Mrs. ThatcherWhen the Prime Minister next meets the EEC Heads of Government, will he confer with them about how they have been able to reduce the rate of inflation in their countries, whereas under this Government the value of the Wilson pound in the pocket has fallen faster than ever before and is now worth less than 80p in the pound?
§ The Prime MinisterYes, Sir, and I think they will probably tell me that they do not have Oppositions which put forward inflationary policies every day of the week.
§ Mrs. ThatcherIs it not more likely that they will tell the Prime Minister that they have effective Heads of Government who can take action?
§ The Prime MinisterNo, Sir. If I were to press them further, as the right hon. Lady suggests, they would say first that unemployment had risen a great deal more in their countries than in ours and that the level of national production had fallen more in the world depression than in this country. They would also note that the policies of the right hon. Lady are directed to more unemployment.
§ Q2. Mr. McCrindleasked the Prime Minister what recent discussions he has had with the Heads of Government of EEC countries.
§ The Prime MinisterThe last meeting of EEC Heads of Government was in March, but I met most of them at the 235 ministerial meeting of the North Atlantic Council in Brussels on 29th and 30th May. This meeting enabled members of the Alliance to reaffirm convincingly their commitment to NATO. We had a valuable discussion on a wide range of current issues. My visit also provided a welcome opportunity for bilateral talks with a number of allied leaders. Copies of the communiqué issued after the meeting had been placed in the Library of the House.
§ Mr. McCrindleTurning perhaps a little more to the future, is not the Prime Minister dismissing all too airily the need, after last Thursday's vote, to reassure our European partners of our determination to play a full part in Europe? Is it not desirable that we should now be encouraging British firms to invest in Europe and vice versa? How can three of his Secretaries of State—who were, to say the least, unenthusiastic about the policy endorsed by the British people—continue to play a leading part in the Labour administration? Does not this indicate that the Prime Minister is seeking to placate the Left in his party rather than to reassure our friends in Europe about our future intentions?
§ The Prime MinisterTo take the serious parts of what the hon. Gentleman put before the House—namely, the first two of his three points—it is certainly the fact, as I emphasised yesterday, that we intend to play a very full part in the co-operation within the Community, and we are strengthened in so doing by the historic vote last Thursday.
I referred to the question of investment in a statement on Saturday to the Nottinghamshire miners and I referred to that matter again yeserday in the House. I agree that it is a serious point, and there will be a two-way investment process. We look forward to a great increase in investment in this country by the EEC and by third country investors.
§ Mr. WhiteheadSo that Europe may now expand and not stagnate, will my right hon. Friend take up, if he has not already done so, with the other EEC Heads of Government the question of the admission of Portugal to the EEC, since that is the expressed wish of the democratic parties of Europe and would be 236 the best protection for the Portuguese people against totalitarianism on the Left or on the Right?
§ The Prime MinisterWhen my hon. Friend refers to stagnation in Europe, I would remind him that the stagnation in industry has occurred more seriously across the Channel than here. This is due to the biggest world depression—a depression caused largely by the oil crisis—since the 1930s. We are discussing within Europe and more widely how we can act internationally to deal with these questions.
§ Mr. David SteelWill the Prime Minister confirm that at his previous meetings with Heads of Government his reservations about direct elections to the European Parliament were related solely to the fact that at that time the referendum had not taken place, and that the Government have no other reservations on this question?
§ The Prime MinisterI dealt with this question yesterday and intimated that while the Parliamentary Labour Party had reservations about membership of the European Assembly, that is now over and the matter will be decided very quickly by a democratic vote of the Parliamentary Labour Party, as I made clear yesterday.
The question of direct elections is an entirely separate matter and must be considered. I was interested in the remarks of the hon. Member for Saffron Walden (Mr. Kirk), who leads the Conservative delegation to the European Parliament, in his broadcast this morning, but this will be a matter for the House as a whole to decide.