HL Deb 23 June 1971 vol 320 cc867-9

3.39 p.m.

THE EARL OF LAUDERDALE

My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.

[The Question was as follows:

To ask Her Majesty's Government whether, to assist public study of the implications of possible British entry to E.E.C., they will obtain and publish the High Commission's memorandum of June 10 inviting Germany and the Netherlands to abandon floating exchange rates and urging all members to apply policies leading to economic and monetary union.]

THE MINISTER OF STATE, DEPARTMENT OF HEALTH AND SOCIAL SECURITY (LORD ABERDARE)

My Lords, the Commission's paper to which the noble Earl refers related to the economic situation and policies of present Member States. But Her Majesty's Government are aware of it and the paper, and its discussion by the E.E.C. Council of Ministers was reported in the Press. On the substance of the matters raised by the noble Earl, Her Majesty's Government look forward wholeheartedly, if negotiations for British accession succeed, to joining in the economic and monetary development of the Community. The two countries mentioned in the Question have stated that their departure from the normal I.M.F. exchange margins is a temporary one.

THE EARL OF LAUDERDALE

My Lords, in thanking the noble Lord for that full and fairly informative reply, may I ask whether he would consider it prudent for this document to be published in full, so that we need not be dependent on Press reports? Perhaps, if he is unwilling to give that assurance, he can tell us whether it would commit us to harmonising our Budget policies, to cutting price rises to 3 per cent. a year and to taking measures against the inflationary effects of hot money?

LORD ABERDARE

My Lords, on my noble friend's first supplementary question, this was an internal paper of the present Community and has not yet been published by them, although Her Majesty's Government are aware of it. On the second point, I can only say that the Six took a decision on March 22, 1971, on certain measures of closer economic and monetary co-operation and Her Majesty's Government see no difficulty in participating in these measures for the first stage of the Community's progress towards an economic and monetary union.

At any further stage we hope that we shall be a member and have our full say.

THE EARL OF LAUDERDALE

My Lords, I should like to thank my noble friend. Could he go this far and ask our present friends in the Common Market, whether, when the paper is available for publication in Europe, he could have a copy and lay it in the Library?

LORD ABERDARE

My Lords, I will certainly take note of my noble friend's suggestion.

LORD GLADWYN

My Lords, we may assume, may we not, that the Government are pledged to work towards the early formation, if possible, of a European monetary union. If that is so, I assume the Government are of the opinion that once the union is formed no question of floating exchanges arises.

LORD ABERDARE

My Lords, we are going ahead with these negotiations while accepting the Community's ultimate objectives. I have already said that we see no difficulty in the first stage of progress. We hope that later we shall be full members and able to exercise our advice and decision-making powers.