Foreign Affairs Council (Hansard, 25 March 1985)

§ Baroness Young
My Lords, with the leave of the House I shall now repeat a Statement on the Foreign Affairs Council which is being made in another place by my honourable friend the Minister of State for Foreign and Commonwealth Affairs, Mr. Rifkind. The Statement is as follows:
"I will, with permission Mr. Speaker, make a Statement on the meeting of the Foreign Affairs Council which was held in Brussels from 17th to 21st March and at which my right honourable and learned friend and I represented the United Kingdom. My right honourable friend the Minister for Trade was our representative at a meeting of trade Ministers which was held within the Council on 19th March.
"The Community made major progress in dealing with the outstanding problems in the enlargement negotiations with Spain and Portugal. On fisheries, the Community and Spain were able to agree on the general framework for integrating the Spanish fleet into the CFP on a basis which safeguards the balance of fishing opportunities for existing member states under the common fisheries policy. Good progress was also made with the Portuguese, though a number of specific issues remain outstanding on the fisheries chapter with both candidates.
"Considerable progress was also made in resolving the differences between the Community and Spain and Portugal on agriculture and social affairs. A special Foreign Affairs Council, with further ministerial meetings with Spain and Portugal, will be held on 28th March to seek to reach agreement on the outstanding issues before the European Council.
"Substantial progress was made on the text of the own resources decision, including provision for our 1,000 mecu abatement in respect of 1984 and implementation of the Fontainebleau mechanism for United Kingdom rebates in future years. The text is now agreed subject to a Greek waiting reserve. It provides that, immediately after notification that the new own resources decision has been adopted and ratified by national Parliaments, our 1,000 mecu abatement should be paid through an anticipation of the new own resources. Subject to ratification of the Accession Treaty, increased own resources for all other purposes would become available from 1st January 1986. Meanwhile, the Community's budgetary obligations in 1985 should be met through intergovernmental agreement.
"Trade Ministers meeting within the Council discussed the proposal for a new round of multilateral trade negotiations in the GATT. They declared the Community's readiness to participate in such a new round, subject to the establishment of an adequate consensus on objectives, participation and timing. The Community undertook to enlist the support of its trading partners, particularly among the developing countries, to this end. The full text of the Council declaration has been placed in the Library of the House.
785 "The Council also discussed the Commission's latest proposals for integrated Mediterranean programmes (IMPs). The subject will be discussed by Heads of Government at the European Council of 29th and 30th March".
My Lords, that concludes the Statement.

§ Lord Cledwyn of Penrhos
My Lords, once again we are grateful to the noble Baroness for repeating this Statement. We hope that these protracted negotiations will be brought to a successful conclusion at the talks which are to take place in Brussels in a few days' time. We also welcome the advances which have been made in the recent negotiations and which will allow the drafting of a 1985 budget and the implementation of Community programmes.
Can the noble Baroness clarify one point? How much money will Britain have to pay to assist in the offsetting of the 1984 budget deficit? Was agreement reached on the size of that deficit? Further, what will the British contribution be towards the 1985 budget, and how does it compare with our contribution for last year?
Again, can the noble Baroness comment on the attitude of Greece, which, from what we understand, has threatened to block Britain's rebate subject to Community agreement on a multi-billion pound development programme for Mediterranean countries? Reports have suggested that the Greek veto will now be exercised against the British rebate and not against enlargement. Can the noble Baroness enlighten the House on that point? Enlargement, we understand, is scheduled to take place on 1st January next year. But, as she will agree, I feel sure, time is running short, and the Brussels summit must be the deadline for agreement on the accession of Spain and Portugal if the date is to be met.
Can the noble Baroness say a word about the French objections on wine and fisheries? Are these, in her view, surmountable? What proposals have been made for the transitional integration of the Spanish fleet into the Community fisheries policy, and what level of aid is being allocated to Spain to enable her to restructure her fishing fleet? The Statement refers to a number of outstanding issues on fisheries. Can the noble Baroness say what those issues are, and do the Government regard them as crucial to an agreement?
Furthermore, the Statement refers to other outstanding issues to be discussed with Spain and Portugal on 28th March. Are those other outstanding issues the fisheries issues to which the Statement refers, or are they additional to the fisheries issues? If so, what is their significance? Finally, is the noble Baroness confident, in the light of all these apparent obstacles still to be overcome, that the enlargement schedule will be met according to plan?

§ Lord Gladwyn
My Lords, I think that we on these Benches certainly regard the report of the Foreign Secretary which the noble Baroness has been good enough to read out as satisfactory—and very satisfactory so far as it goes. Therefore, we should like to extend our congratulations to the Foreign Secretary 786 on the progress made so far. I should like to ask one or two small questions.
First, on enlargement, I see that on fisheries the Community and Spain were able to agree the general framework for integrating the Spanish fleet into the CFP. Does that mean that every member of the Community, including the Danes and the Greeks, was agreed on the general framework referred to in the Statement? I hope that it does. In the second place, on the own resources point, how serious—I think the noble Lord, Lord Cledwyn, referred to this—is the Greek waiting reserve, and what exactly is meant by a waiting reserve? Also, is it thought that all national Parliaments will have to agree the new own resources decision? Is it likely that all the national Parliaments, including those of Greece and Denmark, are likely to agree?
Does the final statement that the Community's budgetary obligations should be met through intergovernmental agreement mean that the usual device will be resorted to—what is called the douxieme provisoire—and that the Commission will carry on by expending one-twelfth of what it spent last year? I think that that is the usual method, but it is not clear from the Statement whether that is the procedure which will be followed.
Finally, on the integrated Mediterranean programme, is it a fact, as I think we read in the press, that the Greeks are threatening to hold up their consent to the enlargement until such time as they may get considerably more money under the projects for the integrated Mediterranean programme?

§ Baroness Young
My Lords, I should like to thank both the noble Lords, Lord Cledwyn and Lord Gladwyn, for their reception of this Statement. I have been asked a number of detailed questions about it. The first one by the noble Lord, Lord Cledwyn, was on the question of the 1985 overrun. I can confirm to him that the figures are still under discussion. The Council, in agreeing last October to meet the inescapable financial obligations in 1985, had in mind a shortfall of 1,315 mecu, or approximately £800 million. We have insisted on a full and detailed explanation and a search for savings on the new Commission figure, which is now estimated to be 2.1 becu; that is to say, £1,220 million. So far no detailed justification has been produced, but we are continuing to look at this.
Both noble Lords asked me about the attitude of Greece to our rebates, and whether there was some linkage with the integrated Mediterranean programmes. The text of the new own resources decision has now been agreed with a Greek reserve which it has said it will maintain until the European Council, but in fact there is a general desire in the Council to proceed quickly with the adoption and ratification of the new own resources. We believe, indeed, that there will be general agreement in council about our abatement, which is due in December 1985, because all member states will have an incentive to ratify the decision quickly so that the new own resources will be available as early as possible.
I was asked a specific question about the agreement on fishing. As I understand it, the questions that remain outstanding are technical issues on the allocation of quotas. Our objective has been to 787 safeguard effective fishing opportunities for the United Kingdom fishing industry, and we believe that it is likely that the settlement will achieve that, subject to satisfactory agreement on these outstanding points, which, as I have said, are technical in nature. As I am sure the House will understand, I cannot give the details while negotiations continue, as that might prejudice a successful outcome at the special Foreign Affairs Council on 28th March.
Finally, I was asked whether we thought it was still feasible to keep to the date for enlargement. I should like to confirm that there is a clear determination by member states, and indeed the resolute Italian presidency at the Foreign Affairs Council, to conclude negotiations as fast as possible so that the target date can be met. We fully expect to reach agreement on outstanding points in the package on 28th March at the special Foreign Affairs Council.