HL Deb 27 November 1973 vol 347 cc8-11
LORD BARNBY

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 with regard to reported intentions to honour contractual commitments for the export of oil and its derivatives to some countries, why, since unity of policies in the E.E.C. enjoys high priority, discrimination is being practised against Holland.

BARONESS TWEEDSMUIR OF BELHELVIE

My Lords, certain Arab oil producers have discriminated between members of the E.E.C. over oil supplies. This discrimination may have been due to the lack, until recently, of a common Community policy on the Middle East.

LORD BARNBY

My Lords, that Answer is disappointing. I can only ask the Minister whether she will give thought to the apparent inconsistency of discrimination in this case as against the exercise of matters connected with the export of military equipment for Israel.

BARONESS TWEEDSMUIR OF BELHELVIE

My Lords, the discrimination by the Arab countries is of course not as a result of Her Majesty's Government's policy. The other matter, discussed in the House recently, was the question of having an even-handed arms embargo in a situation where we wished to do everything possible to help in securing a cease-fire.

BARONESS LEE OF ASHERIDGE

My Lords, does the noble Baroness not agree that, since Holland is exercising a more honourable relationship to Israel than the rest of the E.E.C., those of us who are not in favour of the European Community might be influenced a little if in this instance the European Community would act as a Community and ensure that Holland is not victimised?

BARONESS TWEEDSMUIR OF BELHELVIE

My Lords, Holland of course signed the Declaration, which was a very important one because it represented a common policy on the Middle East. So far as any discrimination against Holland is concerned, exports to Community countries are covered by Her Majesty's Government by open individual licence.

LORD AVEBURY

My Lords, the noble Baroness said that discrimination against Holland may have been due to lack of unity among the European nations. Does she imply by that that following the Declaration this discrimination will cease? If not, what discussions have been held with our European partners to ensure that whatever oil does become available is properly shared among the Nine?

BARONESS TWEEDSMUIR OF BELHELVIE

My Lords, I should have thought that the fact that there was a common European policy on the Middle East would be duly noted by the Arab countries concerned. So far as the second part of the noble Lord's question is concerned, the E.E.C. Council of Ministers decided at their meeting on November 5 and 6 to work collectively for a settlement, and the Foreign Ministers had further consultations on this matter on November 20 and reaffirmed this view.

LORD AVEBURY

My Lords, I am sorry but I did not ask the noble Baroness about arrangements for a settlement; I asked her what arrangements were being made to share oil among the Nine. She emphasised in answer to an earlier question that we are now working very hard for unity with our European partners, and surely that must imply common arrangements for sharing whatever oil is available.

BARONESS TWEEDSMUIR OF BELHELVIE

My Lords, there are at the moment no E.E.C. pooling arrangements, but pooling arrangements exist under O.E.C.D. auspices for a European area; and the Oil Committee met on November 20 and reaffirmed their view that to bring these into effect now would not be appropriate at this stage.

LORD HALE

My Lords, would the noble Baroness recall that since the humiliation 306 years ago we have had the most friendly relations with the Dutch people who are held in the highest esteem by the British people, and that the answer she gave to the noble Lord, Lord Barnby, was really not an answer at all to the question whether we are to submit to a humiliation, not in terms of economic blackmail but in terms of moral blackmail, which is a more serious matter? Can she confirm that, while the Foreign Secretary was speaking about unity of Common Market foreign policy yesterday, the private conferences between President Pompidou and Colonel Gaddafi were directed to the problems of Holland, with determination that they shall not be victimised?

BARONESS TWEEDSMUIR OF BELHELVIE

My Lords, if the conversations were private I naturally could not comment on them, but, as I said earlier, exports to Community countries are covered by open individual licence.

LORD KENNET

My Lords, before the Government of Holland made the Declaration which has caused the Arab oil-producing States to discriminate against that country, did they discuss the draft of it in the political co-operation machinery of the Nine?

BARONESS TWEEDSMUIR OF BELHELVIE

My Lords, the embargo —if that is the way to describe it—against Holland in fact took place before the Declaration of the Nine. A Declaration of the Council of Ministers for the Nine is of course always preceded by preparatory work at various levels throughout the Community.

LORD SEGAL

My Lords, can the noble Baroness say to what extent discrimination against Holland has been allowed to affect the supply of oil to West Germany?

BARONESS TWEEDSMUIR OF BELHELVIE

My Lords, as I said earlier, Her Majesty's Government have no control over the attitude of Arab countries, but we ourselves introduced an export licensing system for crude oil and products on October 25, which applies to all.