America (Hansard, 25 January 1984)

§ 44. Mr. Campbell-Savours
asked the Secretary of State for Foreign and Commonwealth Affairs when he next expects the EEC Council of Foreign Ministers to discuss relations with the United States of America.

§ The Minister of State, Foreign and Commonwealth Office (Mr. Malcolm Rifkind)
The Council discusses such matters whenever necessary, but at present has no immediate plans to do so.

§ Mr. Campbell-Savours
Will the Minister impress on his European counterparts the need to put every pressure on the United States not to reduce its budget deficit, its PSBR, because that would only create further unemployment in America and greater unemployment in western Europe, particularly in the United Kingdom? Is it not fair to say that every time the British Chancellor of the Exchequer requests a reduction in the budget deficit of the United States he is asking for greater unemployment in the United Kingdom?

§ Mr. Rifkind
The hon. Gentleman has the unique distinction of being about the only person in Europe to hold that point of view.

§ Mr. Forman
Will my hon. Friend and his colleagues in Government take every opportunity at EEC Council of 911 Ministers' meetings and elsewhere to try to get agreement in the Community, and hence with the United States, on the need to avoid international economic warfare, whether it be through subsidies, quotas or any other mechanism? Is he aware that if the Government are serious about looking for public expenditure restraints, not to speak of cuts, we must remember that this country alone spends about £500 million a year on export subsidies and that if we were to get a satisfactory international agreement, that would be a saving well worth making?

§ Mr. Rifkind
My hon. Friend draws attention to an important matter. I agree that it is not only the responsibility of the United States not to introduce any new import restrictions. Her Majesty's Government argue strongly in the European Community that in seeking to resolve the problems of the Community we should not try to do so at the expense of increasing protectionism from the point of view of the Community's relationship with the United States or with other countries.

§ Mr. Ioan Evans
What initiatives will Ministers take regarding a reduction of the arms race and the possibility of suggesting some initiatives on nuclear disarmament? Do EEC Ministers support the initiative taken by Premier Trudeau in trying to get the five countries that produce nuclear weapons together to achieve a reduction?

§ Mr. Rifkind
As the hon. Gentleman will know, the EC does not itself take a position on defence issues. He will be equally aware that those European Community members who are also members of NATO strongly support the position of the United States on the disarmament negotiations and hope that the Soviet Union will soon return to the negotiating table.

§ Mr. Hordern
Does my hon. Friend agree that the Americans must be somewhat puzzled about what they should do to get things right, since they were first criticised for exporting too many dollars and now they are criticised for importing too much money from other countries? Could not the Americans easily reduce their overseas deficit by reducing the number of forces in western Europe? Does my hon. Friend agree that the Americans remain invaluable and trusted allies of the West and that we would do well to recognise that?

§ Mr. Rifkind
I unreservedly agree with my hon. Friend's final remark. I hope he shares the view that the presence of United States' troops in Europe is an important part of the defence of the West as a whole, and in the interests of the West and of the United States.

§ Mr. Norman Atkinson
Will the Minister reconsider his smart answer to my hon. Friend the Member for Workington (Mr. Campbell-Savours)? Is the Minister aware that by answering in that fashion he proves that he is unique in Europe in that he has never read the valuable opinions of many European Governments who support my hon. Friend's view? Does he recognise that his answer has the support only of those conventional bankers who take the monetarist view which he and his Government support?

§ Mr. Rifkind
In the light of that supplementary question, I accept that there must be at least one other person who shares the view expressed by the hon. Member for Workington (Mr. Campbell-Savours). The hon. Gentleman must not use simplistic arguments. He must be aware that not only the present British Government, but 912 the Socialist Government in France, and other European Governments, hope to see a reduction in the American budget deficit because of the beneficial effect that that would have on interest rates around the world.