HC Deb 17 November 1976 vol 919 cc1330-2
28. Mr. Blaker

asked the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement on the latest position relating to the negotiations regarding a proposed commercial agreement between the EEC and the COMECON countries.

Dr. Owen

The Community's reply to the Council for Mutual Economic Assistance's proposals which were received earlier this year is being handed over today to the President of the Council for Mutual Economic Assistance Executive Committee in Warsaw. The Community's reply takes the form of a draft agreement. A letter from the Presidency will be handed over at the same time expressing readiness to open negotiations straight away on this basis.

Mr. Blaker

Will the Minister of State assure the House that there is no proposal for the Community to extend to the Soviet bloc even easier credit terms than those which exist at present? Should not the Community consider whether the existing arrangements, in which Community countries extend to the Soviet bloc very long credits on easy terms, should be re-examined, as they may be contrary to our interests?

Dr. Owen

I am in some difficulty, because it is impossible, while negotiations are still taking place, to answer detailed questions on the position of the Community in these negotiations. I prefer to await a successful conclusion to the negotiations. It is far better that I should resist being drawn on any aspect of the negotiations.

Mr. Frank Allaun

Will my right hon. Friend refrain from taking notice of such questions? Millions of constituents of Hon. Members on both sides are very dependent on engineering and other orders, which can be obtained on a huge scale from the Soviet Union at present.

Dr. Owen

I certainly agree to the extent that I hope it will not become a subject of dispute between the two sides of the House that we should trade with COMECON countries. This would be a totally new attitude for the Opposition and I am sure that they do not contemplate it. All hon. Members want a fair and detailed agreement between the Community and the COMECON countries, and this is what we are attempting to negotiate.

Mr. Giles Shaw

The hon. Member for Salford, East (Mr. Allaun) mentioned engineering, but will the Secretary of State bear in mind that the British wool textile industry is substantially at risk from quotas previously negotiated with COMECON countries? Will he ensure that British interests are well protected?

Dr. Owen

I assure all hon. Members that in these negotiations we are protecting both British and Community interests, as well as taking a wide look at the whole question of international trade.

Mr. John Davies

Will the Minister of State say whether the missive to the CMEA countries includes a strong recommendation that the negotiations would proceed more favourably and satisfactorily if there were recognition of the Community by CMEA and the COMECON countries?

Dr. Owen

This is implicit in the negotiations. Once one has made a reply to the COMECON countries and one enters into negotiations, one is much closer to a situation, and, in fact, de facto in a situation of recognition, which has not occurred before.