HL Deb 29 October 1970 vol 312 cc213-8

4.25 p.m.

THE PARLIAMENTARY UNDER-SECRETARY OF STATE, FOREIGN AND COMMONWEALTH OFFICE (THE MARQUESS OF LOTHIAN)

My Lords, with the permission of the House I should like to repeat a Statement made by my right honourable friend the Chancellor of the Duchy of Lancaster in another place. It is as follows:

"I should like to make a brief Statement on the progress of the negotiations for British membership of the European Communities since my right honourable friend the Chancellor of the Exchequer made his report, as Chancellor of the Duchy of Lancaster, on July 23.

"During the period since I assumed my present office I have had contacts with many Commonwealth Governments on the subject of the negotiations, which I believe to have been of great mutual benefit. I thought it right to visit Hong Kong, Australia and New Zealand during September in order to see myself, on the spot, the nature of the problems which might arise; and I was able to have extensive discussions with representatives of all three Governments. I have also had the pleasure of meeting Ministers of Canada, Fiji and Commonwealth Caribbean Governments in London. In addition, I am in the course of making visits to all Community Capitals. I have already been able to meet several of my Community colleagues, including the President of the European Commission.

"I turn now to the progress of the negotiating conference. As my right honourable friend explained in his Statement on July 23, fact-finding work was instituted on a broad range of subjects by the Ministerial meeting on July 21. As has been recognised by the Six themselves, this phase is now over.

"Four useful meetings have taken place at the Deputies' level in the meantime, largely concerned with preparing the ground for the Ministerial meeting which I attended this week.

"I am happy to report that as a result of this preliminary work it was possible to record on October 27 the first agreements of the negotiations.

"At previous meetings we expressed some concern whether the Community's existing arrangements would be adequate, in the circumstances of the enlarged Community, to ensure stability in the markets for pigmeat and eggs and to allow adequate supplies of liquid milk. On October 27 the Community recorded its agreement with our understanding of the possibilities that will be open to us and which would ensure the provision of adequate supplies of liquid milk to meet consumer demand throughout the country and throughout the year; they accepted our views on the importance and characteristics of the bacon market in an enlarged Community and the need for keeping the situation under careful review during the transitional period and thereafter; and recognised the desirability of stability for pigmeat and eggs. We concluded therefore that no further points need be raised on these items during the negotiations, except in the general context of transitional arrangements.

"We were also able to reach agreement on procedures for an annual review of the economic conditions and prospects of the agricultural industry in the enlarged Community. The Commission will draw up this review for the Council of Ministers on the basis of all the relevant information and after contacts with the agricultural organisations. These arrangements will ensure effective contacts with producers.

"The Community confirmed that in principle they saw no objection to British dependencies being associated with the enlarged Communities under Part IV of the Treaty of Rome; and that Gibraltar would be covered by Article 227(4) of the Treaty which covers European territories of Member States. On the other hand, they indicated that they did not regard the case of Hong Kong as comparable with other dependencies and that it posed special problems which would have to be examined in greater depth. In reply, I stressed the importance of providing for Hong Kong's interests. The question of Hong Kong will therefore need further discussion with the Six.

"Finally, in response to a suggestion from the Community side, I confirmed that as a member of the Community we would accept the Common Commercial Policy, subject to the development of that policy, and that we should be prepared to make every effort in the meantime to harmonise our policies. We agreed that a mutual exchange of information in this field would be of value to both sides.

"These, then, are the results achieved at the meeting on October 27. They indicate that the negotiations have got off to a serious and positive start. They represent an achievement reached by both sides working together towards a common objective. The political will to make the negotiations a success was evident. It was clear that all realised that a successful outcome is a major interest for Europe as a whole. This was shown not only by the agreements I have outlined but by the desire expressed by both the Community and ourselves to step up the pace. We have in fact agreed to tackle all the major issues before the end of this year and to continue to discuss them urgently in the coming months."

That, my Lords, is the end of the Statement.

LORD SHEPHERD

My Lords, on behalf of the House I thank the noble Marquess for repeating the Statement. On the question of how substantial has been the progress, I think we shall have to wait until we see full details of the agreements reached. But we on this side of the House welcome the fact that the pace is to be stepped up, and that negotiations on the major issues will be tackled by the end of this year.

Having said that, I would add that I hope the Government will remember their pledge to have full consultation with the Commonwealth and with other countries affected. I welcome very much the fact that the Chancellor of the Duchy has visited Australia, New Zealand and Hong Kong, and has had other discussions, but I must express some concern about the question of consultation, in the light of what appeared to be the startled reaction of Australia and New Zealand to the Statement earlier this week by the Chancellor of the Exchequer when there was a vague reference to the imposition of levies on foods. I do not know whether the noble Marquess can confirm that there were consultations with Australia and New Zealand before that Statement was made in Parliament. I think that underlines the need for full consultation.

I welcome the fact that dependencies are to be covered by Article IV of the Treaty of Rome, and in the case of Gibraltar, by Article 227 of the other Treaty, though I regret that the case of Hong Kong is causing difficulty. I hope that the phrase in the Statement is not merely a gloss, and that there is an intention to pursue the Hong Kong case vigorously with the E.E.C. members. But may I ask whether the Associated States—those countries in the Caribbean for whose external affairs we are directly responsible—are covered by the phrase "dependent territories"? They are not strictly dependent territories in the full sense, but they are dependent in terms of negotiation. It is particularly important for those countries that their position is clearly understood, especially in regard to bananas, and I wonder whether the noble Marquess can give us some information. Can he tell us whether they are included, and whether there is a reasonable expectation that the Windward bananas will be treated in much the same way as, and certainly no less fairly than, the bananas from the former French colonial territories when they are imported into the E.E.C. countries?

I give a welcome to the Statement. Certainly we hope later on to get further information as to what arrangements are arrived at. But we shall wait for the Government to produce those in their good time.

LORD HENLEY

My Lords, my friends and I are very pleased to know that the Chancellor of the Duchy is pursuing his efforts with such zeal and we wish him every success.

THE MARQUESS OF LOTHIAN

My Lords, I should like to thank the noble Lord, Lord Shepherd, for his general welcome to the Statement, and also the noble Lord, Lord Henley. Of course I entirely share the views of the noble Lord, Lord Shepherd, on the need for full consultation with the Commonwealth, especially while the negotiations are proceeding. I think I can assure him that, as we have started in this way, we intend to go on.

The noble Lord asked me several questions. The first was whether the Associated States are included in the "dependent territories". My understanding is that they are. I entirely agree with the noble Lord on the subject of bananas. This is a very important matter, but a very technical one, and I should not wish to mislead the noble Lord by stating exactly what the position will be. However, I will certainly bring to the attention of my right honourable friend what he has said. We are certainly pursuing with vigour the question of Hong Kong, and my understanding is that the deputies will be discussing this matter next month in Brussels.

LORD MERRIVALE

My Lords, as a Back-Bencher who would very much welcome our entry into the Common Market, should it come about, may I say how pleased one is to hear the progress report? May I also say how encouraging it was to read the reports in the Press on Wednesday, following the meeting last Tuesday when the Chancellor of the Duchy appeared to make reasonable progress with his colleagues of the Common Market; and, I think, had very good relations with Monsieur Maurice Schumann and other Ministers present. I think that is very encouraging for the future.

May I ask my noble friend whether he can give the House any idea of the timetable that is to be followed for these meetings in the coming months? Also, may I ask him a question on Gibraltar, which may be of interest to the noble and learned Lord, Lord Gardiner, and the noble Lord, Lord Shepherd, because it is a matter which was raised under the previous Administration? The noble Marquess said that Gibraltar would be covered by Article 227. Does that mean that if we entered the Common Market all the facilities and commitments involved would affect Gibraltar? Does it also mean that Gibraltarians would have free access to countries of the Common Market, including Great Britain, as other Member States do?

THE MARQUESS OF LOTHIAN

My Lords, in reply to my noble friend I must say, to be quite honest, that I should like notice of his question on Gibraltar. This again is a pretty technical matter. I think he is right, but I should like to make absolutely certain. As to the timetable, it is always difficult to estimate, but the next Ministerial meeting is due to take place at the beginning of December, and the hope is that the bulk of the negotiations will be completed by the end of the summer, in June or July.