§ 3.41 p.m.
§ THE LORD PRIVY SEAL (THE EARL OF LONGFORD)My Lords, with permission, I would ask leave to repeat a Statement which my right honourable friend the Prime Minister has just made in another place. His words are—and now I am quoting the Prime Minister:
"Her Majesty's Government have to-day decided to make an application under Article 237 of the Treaty of Rome for membership of the European Economic Community and parallel applications for membership of the European Coal and Steel Community and Euratom.
"As the House will recall, I stated on the 10th of November last that my right honourable friend the Foreign Secretary and I would embark on
'a series of discussions with each of the Heads of Government of the Six, for the purpose of establishing whether it appears likely that essential British and Commonwealth interests could be safeguarded if Britain were to accept the Treaty of Rome and join E.E.C.'."These discussions took place between January and March. Since then the Government have carried out an exhaustive examination of all the issues involved, resulting in the decision I have just announced."The reports I have made to the House have made it clear that during the discussions in the Six capitals we were not engaged in negotiations. But my right honourable friend and I, and indeed the House, have reason to be grateful to our hosts for the very frank exchanges which preceded to-day's decision.
"These exchanges have enabled us to identify the major issues which we, for our part, shall wish to see settled in the negotiations.
844 "On the Treaty of Rome itself, as I informed the House on the 10th of November, we have throughout our discussions taken the view that, as I then said "—
and I am now quoting what the Prime Minister said earlier—
… the Treaty of Rome is not in itself or necessarily an impediment. There are anxieties … but the Treaty need not be an obstacle if our problems can be dealt with satisfactorily, whether through adaptations of the arrangements made under the Treaty or in any other acceptable manner'.That, my Lords, concludes the quotation."In short, as I said then"—
and I resume the quotation—
'the Government would be prepared to accept the Treaty of Rome, subject to the necessary adjustments consequent upon the accession of a new member and provided that we receive satisfaction on the points about which we see difficulty'.That concludes the quotation."Our discussions in the capitals of the Six have confirmed the validity of this approach in terms of the practical working of the Community and its institutions.
"It is in this spirit that the Government intend to embark on the negotiations which must precede entry. The House will, I am sure, agree that they ought not to be unnecessarily complicated with lesser issues, many of which can be best dealt with after entry. It is our hope that the negotiations will be followed through swiftly, and will relate to the small number of really important issues which have been identified through our recent discussions, issues on which agreement should be reached if the House and the country are to be satisfied that essential British and Commonweath interests will be safeguarded. This is the spirit in which the original partners to the Community conducted their own negotiations over ten years ago. Our recent meeting with our E.F.T.A. partners has confirmed that they, too, view the matter in the same light. They will, we hope. also be making their approaches to E.E.C.
" I now turn to the major issues which it must be our purpose to resolve during the negotiations.
845 "First, there are the problems associated with the operation of the Common Agricultural Policy of the Community—the problems of its potential effects on the cost of living and on the structure and wellbeing of British agriculture; problems of the budgetary and balance of payments implications of its system of financing; and certain Commonwealth problems with which I will deal in a moment.
"As I have already made clear, publicly, we must be realistic and recognise that the Community's agricultural policy is an integral part of the Community: we must come to terms with it. But the Government recognise that this policy would involve far-reaching changes in the structure of British agriculture. This will require suitable arrangements including an adequate transitional period to enable the necessary adjustments to be made.
"It is also the Government's view that the financial arrangements which have been devised to meet the requirements of the Community's agricultural policy as it exists to-day would, if applied to Britain as they now stand, involve an inequitable sharing of the financial cost and impose on our balance of payments an additional burden which we should not in fairness be asked to carry.
"There are also highly important Commonwealth interests, mainly in the field of agriculture, for which it is our duty to seek safeguards in the negotiations. These include in particular the special problems of New Zealand and of Commonwealth sugar producing countries, whose needs are at present safeguarded by the Commonwealth Sugar Agreement. We have, as the House knows, been in touch with all our Commonwealth partners, and will make special arrangements to keep in close consultation with them, as with our E.F.T.A. partners, throughout the negotiations.
"Again as the House knows, capital movements raise questions of special importance. Our discussions suggest that these can be dealt with by suitable arrangements.
"Another important issue is the question of regional policies. Here, too, we had to satisfy ourselves that we should be able, as members of the 846 Community, to continue to take the necessary steps to ensure the industrial and social development of those areas of the country with which this House is always and rightly especially concerned. Our discussions with the Heads of the Governments of the Community, not least the information we were given about the policies currently being pursued by member countries, have reassured us on this score.
"As I have said, these are major and important issues but I can tell the House that the Government believe that there is nothing either in the Treaty of Rome or in the practical working of the Community which need make them insoluble.
"Mr. Speaker, I have gone into some detail about certain specific economic issues, on which honourable Members are rightly concerned. But the Government's decision has been motivated by broader considerations of economic policy and still wider arguments to which I will turn later. On the economic arguments each honourable Member will make his own judgment of the effect on exports and imports, on industrial productivity and investment. Equally, every honourable Member must make his own assessment of the economic consequences of not going into the Community and, in an age of wider economic groupings, of seeking to achieve and maintain viability outside.
"But all of us are aware of the long-term potential for Europe, and therefore for Britain, of the creation of a single market of approaching 300 million people, with all the scope and incentive which this will provide for British industry, and of the enormous possibilities which an integrated strategy for technology, on a truly continental scale, can create. I am glad to say that my right honourable friend and I found that this concept has made a great impact throughout Europe.
"But whatever the economic arguments, the House will realise that, as I have repeatedly made clear, the Government's purpose derives above all from our recognition that Europe is now faced with the opportunity of a great move forward in political unity and that we can—and indeed must—play our full part in it.
847 "We do not see European unity as something narrow or inward-looking. Britain has her own vital links through the Commonwealth, and in other ways, with other continents. So have other European countries. Together we can ensure that Europe plays in world affairs the part which the Europe of to-day is not at present playing. For a Europe that fails to put forward its full economic strength will never have the political influence which I believe it could and should exert within the United Nations, within the Western Alliance and as a means for effecting a lasting détente between East and West; and equally contributing in ever fuller measure to the solution of the world's North-South problem to the needs of the developing world.
"It is for all these reasons that we intend to pursue our application for membership with all the vigour and determination at our command.
"The House will of course wish to debate this decision at the earliest opportunity and arrangements will be made"—
that is, in the House of Commons—
"for a three-day debate next week when the House will be invited to pass a Motion approving this present Statement, which will be presented as a White Paper. We shall seek to meet the requirements of Parliament for the fullest possible information over the coming weeks. A first Paper dealing with Agriculture will be available later this week and we shall take the opportunity of the debate, and of further White Papers which will be laid, to enable Parliament, and public opinion generally, to form a full, fair and informed judgment of the great issues involved.
"For all of us realise that this is a historic decision which could well determine the future of Britain, of Europe and indeed of the world for decades to come."
That completes the Prime Minister's Statement.
It may be for the convenience of the House if I inform noble Lords that it has been agreed through the usual channels that we should have a debate on Wednesday, May 10, on the Government decision to apply to join the Common Market. The debate on future aircraft 848 needs of British civil aviation to be initiated by the noble Lord, Lord Balfour of Inchrye, will be taken on Tuesday, May 9.
§ 3.51 p.m.
§ LORD CARRINGTONMy Lords, I think we are all grateful to the noble Earl the Leader of the House for having repeated that Statement. I certainly welcome wholeheartedly the Statement which he has just made about the Government decision to apply for membership of E.E.C.—not an entirely unexpected decision, in the light of all the publicity of recent weeks. I agree with the last words of the Statement, that it is an historic decision, just as it was an historic decision for the Conservative Government to make the same decision in 1961. I only hope that the outcome of this application will be different from the outcome in 1963. I say this in no Party spirit, but I believe that the Government will have the additional benefit of having the support of the official Opposition in their application which we were not fortunate to have in those days. The negotiations, of course, will be difficult, they may take some time; but we would certainly wish them well as they are proceeding.
The Prime Minister spoke about having a great national debate before the decision was reached, and I think this led many of us to expect that a number of White Papers would be issued, so that we might have rather fuller knowledge of what has been happening during the Prime Minister's visits to the other capitals of Europe. Am I to understand from the last few sentences of the Statement that other White Papers will be published before the debate in this House and in another place next week?
Lastly, might I ask this? The "usual channels" have rather surprised me, because I had no idea that we had arranged to have a debate on Wednesday, May 10. Indeed, the last words I had with the noble Earl the Leader of the House—who, I suppose, is a "usual channel"—is that we were going to have a debate on Monday. And I should have thought that that, on the whole, would be much more convenient, since it is the day on which the House of Commons start their debate. For us to start our debate on the last day on which the Commons have theirs does not seem to me, if I may say so, to be very satisfactory.
§ LORD BYERSMy Lords, this is indeed an historic moment. I will not at this point in time quarrel as to which are the right usual channels; but we on these Benches warmly welcome the decision the Government has announced, to apply for membership of E.E.C. As the House knows, we have been advocating this for over ten years. We certainly wish them every success. Indeed, if our application succeeds, this could be the beginning of a new era, not only for this country but for Europe as a whole. We might all go forward much stronger as a political entity in the future, and also stronger economically. I should like to ask the Government two questions on timing. When will the first negotiations take place? What form will they assume?
§ THE EARL OF LONGFORDMy Lords, perhaps I should begin by thanking both noble Lords for the very cordial, handsome welcome extended to the Statement. I do not think I will involve myself in discussions about the operation of the "usual channels". Once they were revealed in the full light of day they would lose much of their meaning. I thought that the noble Lord and I were (if it is possible to put it this way) above the level of the usual channels: I thought that they worked on some lower level. I therefore assumed that anything agreed on that level and agreed by me would be agreed by the noble Lord.
§ LORD CARRINGTONMy Lords, may I interrupt? My noble friends who are the "usual channels" deny making any agreement about a debate on Wednesday, May 10. In any event, whether they did or not, nobody has asked me. I have not consulted with any of my noble friends; but I do feel, with respect, that it would he rather a pity if we had our debate on the last day of the three-day debate in the House of Commons. I would ask the noble Earl, in all friendliness, whether he would look at this matter again. I do not think it is a very good idea.
§ THE EARL OF LONGFORDMy Lords, I am assured that there was agreement; hut, equally, I appreciate that the noble Lord. Lord Carrington, was not informed. In the circumstances. I can only say that the usual channels had better start work and proceed even more efficiently later on this afternoon. I can assure the 850 noble Lord—I am sure that he knows it well—that I have no prejudice in favour of one day rather than another; there are inconveniences in any of the days chosen. But, clearly, we must have this debate on a day acceptable to all. The noble Lord also asked about White Papers. The statement that I have just read will appear as one White Paper; and that will come under discussion next week. There will be at least one more before next week, and other White Papers. But I imagine that, in addition to this Statement read to-day, there will be more than one White Paper before next week. It is simply a question of how fast they can he prepared.
The noble Lord, Lord Byers, asked about timing. So far as we are concerned, once Parliament has approved the Statement, then the sooner this can go forward, the better. There is no delay on our side. It will be up to E.E.C. to decide how quickly they are prepared to consider our application and embark as I hope, on the negotiations.
§ LORD BLYTONMy Lords, is my noble friend aware that I am pleased, so far as it goes, with the Statement, because, first, it does not accept the position of unconditional surrender adopted by the noble Lord, Lord Gladwyn and others; and, secondly, because, after weeks of anxiety, it shows that the Government are not betraying their friends, the Commonwealth, or British interests. As the Minister says, they will be safeguarded. But could the Minister say why the Government see no difficulty in the Treaty of Rome in 1967 while the Prime Minister was very critical of it in 1963. As the Treaty is the same, could he explain the change of attitude? Could he say that we now accept the political implications of federalism?
§ THE EARL OF LONGFORDMy Lords, there is no question of accepting the implications of federalism. May I just say with what a feeling of relief I listened to the noble Lord, Lord Blyton. I had realised that this document was a masterpiece; but I had not realised quite what a masterpiece it was until I was able to hear it welcomed by the noble Lord, Lord Byers (and, I am sure, by the noble Lord, Lord Gladwyn) and by the noble Lord, Lord Blyton. I think it is the finest example of the draftsman's art in history.
§ LORD BYERSIs the noble Earl aware that if the noble Lord, Lord Blyton, can welcome this Statement, it undermines our confidence in it?
§ THE EARL OF LONGFORDMy Lords, it is just possible that he has not got it right.