§ Lord STRABOLGIMy Lords, my right honourable friend the Prime Minister is making a Statement in another place today about the European Council Meeting. Following discussions with the usual channels it has been agreed that it would be convenient for the House for the Statement to be made available in the Official Report. With the leave of the House I will arrange for that to be done.
Following is the Statement referred to:
With permission, Mr. Speaker, I will make a Statement on the meeting of the European Council which I attended in The Hague with my right honourable friend the Foreign and Commonwealth Secretary on 29th to 30th November.The meeting reviewed a number of important questions of concern to all the Member Governments of the EEC. Some of our conclusions were recorded in agreed texts, copies of which will be placed in the Library of the House.We had a full discussion on economic and monetary matters, where we looked at the present state and prospects of the Community in relation to the rest of the world. Most of our partners share, in varying degree, our own concern with problems of inflation, employment and balance of payments. There was common interest in trying to ensure that the growth of activity, both in the Community and in the rest of the world should not slow down, and in finding constructive ways of tackling our common problems in a Community framework. A number of colleagues joined me in stressing that, whilst those countries which, like the United Kingdom, are still faced with problems of inflation, unemployment, balance of payments and inadequate investment in productive industry must take all possible steps to help themselves, there are also helpful steps which others in the Community could take. In particular, as the Commission brings out in its report which the Council approved, the stronger economies have an important part to play. There was some measure of reassurance about the prospects of continuing recovery. But all member countries were concerned about the serious potential effects of any further increase in oil prices.The second major subject of discussion was the North/South dialogue and the range of problems relating to international economic co-operation. The European Council examined the questions which are currently under discussion in various international bodies, and reaffirmed the importance it attaches to making a contribution to the economic development of the developing countries, while keeping in mind the problems posed by difficulties in the Community's own economy.We were able to complete our work on the Tindemans Report. There was a warm expression of the Council's thanks to the Belgian Prime Minister for undertaking this task. The European Council endorsed the general lines on which Ministers for Foreign Affairs have been working, and emphasised the importance to be given in the next phase of the Community's development to 281 combating inflation and unemployment, to drawing up common policies for energy and for research, and to developing a genuine regional and social policy in the Community. The European Council will have a yearly look at the progress achieved in various fields.We discussed trade relations between the Community and Japan, and drew attention to the problem created by the deterioration in the trade situation and the difficulties which have arisen in certain industrial sectors. The Council agree that these relations should be developed to the advantage of both the Community and Japan. Urgent consideration will be given to various trade problems by the Community institutions; and the Council called for substantial progress to be made before its next meeting. We expressed satisfaction at the indications we have had of Japanese willingness to co-operate with the Community.There was an exchange of views on agricultural problems in the Community including the question of monetary compensatory amounts. While some Member Governments sought to focus attention particularly on matters arising from changes in currency relationships, I emphasised that these must be seen as only one part of a wider problem—the need to improve the agricultural policy and particularly to eliminate costly surpluses.The Council approved the nominations of each of the Member Governments to the new Commission, and agreed that my right honourable friend the Member for Stechford should now be formally appointed as President. The appointment of the honourable Member for the City of London and Westminster South as the Second British Commissioner, was also confirmed. The Council noted that the Commission would be reviewing its organisation and procedures, and looked forward to hearing in due course an account of the conclusions reached.This meeting once more made clear that many of the problems which we in this country face are shared by others in the Community. It also showed that the institutions of the Community are not sufficiently developed to provide common solutions to these problems which are intensified by the growing divergence between the economies of various Member States. Nevertheless, the exchange of views which we held during the Council Meeting will be helpful in our efforts to resolve them.