§ 3.12 p.m.
§ Lord BROCKWAYMy 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 what conclusions were reached at the Rome Summit meeting of the EEC regarding economic co-operation with the developing nations, particularly in regard to the establishment of a Common Fund to support commodity prices and to a reconsideration of the payment of debts owed by the developing world to the West; and what contribution the British representatives made to these decisions.
§ Lord GORONWY-ROBERTSMy Lords, as my right honourable friend the Prime Minister indicated in another place, at the conclusion of the European Council in Rome, the Community agreed that there should, where appropriate, be commodity price stabilisation agreement and that there should be a Common fund. The Community also agree that there should be a study of export earnings stabilisation measures for the developing countries and of special action in the context of debt and the transfer of resources. The United Kingdom, both nationally and as the Presidency representative, played a leading role in the Rome discussions.
§ Lord BROCKWAYMy Lords, while thanking the noble Lord for that Answer and welcoming those decisions—it is the first time that the principle of the Common Market has been accepted as an international concept—may I ask whether any steps are being taken to obtain contributions to the financing of the Common Fund from the OPEC and Communist blocs as well as from the West?
§ Lord GORONWY-ROBERTSYes, my Lords. The next phase of discussions will concern detailed examination of the 689 sort of fund which could be economically desirable to all parties, and that would include the considerations that my noble friend has just advanced.
§ Lord BROCKWAYMy Lords, if I may ask a wider question, is it now recognised that some arrangement, as President Carter has said, for a new international economic order is absolutely necessary if the stagnant condition in the West is to be dealt with, and will particular attention be paid to the proposal that the EEC should stabilise commodity prices with all developing countries as well as with those which are associated with it?
§ Lord GORONWY-ROBERTSYes, indeed, my Lords. We are in fairly full agreement with the attitude of the American President on this matter. Indeed— my noble friend asked me to clarify this—the EEC has taken a most encouraging stand, both on the Fund and on the related questions of stabilisation, debt and the transfer of resources. We are moving forward to some very important studies, including a study of the position relating to some 18 commodities. I think that would cover the larger ambit of developing countries that my noble friend had in mind. There is nothing in the attitude of the EEC which is at variance with the American initiative. I believe everything in it is in conformity with that initiative.
§ Lord BARNBYMy Lords, when these questions of international indebtedness are raised internationally, is it not the Government's intention to press for the utmost rectitude in the repayment of international indebtedness? Secondly, with regard to raw materials, if the Government uphold the idea of supporting international arrangements to avoid fluctuations in the prices of raw materials, what sort of sum do the Government contemplate will be necessary to control raw material prices?
§ Lord GORONWY-ROBERTSMy Lords, on the first point in connection with debt, the noble Lord will recall that I have said that the Community agreed that there should be a study of export earnings, stabilisation agreements and a study of special actions in regard to debt and the transfer of resources. It would be rather early to indicate the approach 690 to the question of indebtedness. As the noble Lord will know, there are various techniques and possibilities.