HL Deb 19 February 1997 vol 578 cc771-4

8.48 p.m.

Lord Chesham rose to move, That the draft order laid before the House on 10th February be approved [12th Report from the Joint Committee].

The noble Lord said: My Lords, the Barcelona process, which was launched in 1995, aims to promote co-operation between the EU and the Mediterranean region. Euro-Med association agreements, of which the EU/Israel agreement is one, are an important part of this process. The trade liberalisation provisions of those agreements, and the long-term goal of a Euro-Med free trade area by 2010, will enhance the economic prosperity of the region. By doing so, they will also improve the conditions for political stability.

This agreement should be seen in the context of the other Euro-Med agreements, in particular, of course, with the PLO (on behalf of the Palestinian authority). That interim agreement is due to be signed at the General Affairs Council on 24th February. Meanwhile, the UK has ratified the Tunisia agreement, the Morocco agreement should come before the House this summer, and we hope that agreements with Egypt, Jordan, Lebanon and Algeria can be concluded soon.

The agreement covers mainly trade and investment issues. It also provides for enhanced political dialogue and co-operation in the economic, social and financial fields. The close relationship between our two countries, symbolised by the state visit of President Weizman next week, is a strong reason for the UK's support of this agreement.

The consideration of the EU/Israel Association Agreement by this House comes at significant time. The Government of Mr. Netanyahu signed up to the Oslo process in last month's agreement on Hebron. That agreement re-affirmed both sides' commitment to the Israeli-Palestinian Interim Agreement of 1995. We now hope to see momentum maintained by timely further redeployment of Israeli forces on the West Bank as envisaged in that agreement and progress in negotiations on other outstanding issues. The Palestinian side, for its part, must continue to do all it can to suppress terrorism and help ensure Israel's security from attack.

We believe that the EU' s agreements with both Israel and the PLO will help to increase prosperity in the region. Prosperity is an important contribution to peace. For that reason we are concerned by the restrictions that remain on the Palestinian economy. While recognising Israel's right to impose measures that are necessary for its security, we believe that the damage done to the economy of the West Bank and Gaza strip since 1993 by restrictions on movement of people and goods is itself a threat to the peace process. The Palestinian economy must be allowed to realise its potential if popular support for the peace process is to be maintained.

We have urged the Israeli Government to make rapid progress in a number of areas: easing restrictions on the passage of goods across the Jordanian and Egyptian borders; making arrangements for free passage between Palestinian areas; allowing the opening of Gaza airport and the construction of Gaza port; and tackling a range of other outstanding economic issues. We welcome the easing of these restrictions over recent months, and the recent encouraging agreement on the payment of outstanding debts between Israel and the Palestinian authority. But there is still a long way to go.

By entering into this agreement with Israel, we intensify its political dialogue with the EU and the scope for discussing issues such as these in a practical manner. The agreement will be a positive step in bringing Israel closer to our thinking on a range of subjects, and encouraging the Israeli Government to follow the policies which we believe are essential to the peace process. We will continue to do all we can to support the peace process. The EU/Israel Agreement and other Euro-Med agreements can help to underpin that process. UK ratification of the agreement will be timely, as the peace process recovers momentum after a slow period. It will also demonstrate our close relationship with Israel and our determination to use that to support progress towards lasting peace and prosperity in the Middle East.

Lord Graham of Edmonton

My Lords, I rise to make a very brief intervention, first of all to apologise for the absence of my noble friend Lady Blackstone, who is unable to be here. She has asked me to say that she gives a very warm welcome to this initiative, not least to the fact that the Government welcome an initiative from the European Union. That is a pleasure and a joy, and one that will go on the record.

The background is very timely. The Minister was kind enough to indicate that this is set against the background of the forthcoming visit of the President of Israel who, as we know, is not only an important man in his own country but a great friend of this country. He was a pilot in the RAF during the war and that in itself, especially to someone like myself, as an ex-serviceman in the same war, counts for a great deal.

What the Minister has told us is: so far, so good; we are making progress but there is a very long way to go. We on this side certainly recognise that in the Middle East one very often takes one step forward, one step sidewards and two steps backwards, so we are not under any illusion that this is of enormous significance. However, it is satisfactory in the context of the fact that the Government and the European Community intend, as far as they are able, to treat the Israeli Government and the Arabs and the PLO with as even a hand as possible.

There is no doubt that the stability and prosperity that could flow from this initiative is desperately needed by both protagonists in what at times must appear to Ministers in this House and in another place to be a very great burden indeed. What we have is the fulfilment of certain steps. I recognise that. As Ministers and Shadow Ministers we have five minutes of glory at the Dispatch Box, but I realise that in order to get to this stage an enormous amount of work is done in the Foreign Office by Foreign Office Ministers. We on this side of the House wish to pay full tribute to the Ministers who have been steering this matter so far; they deserve to receive our commendation.

There is only one question on which I would be grateful for the Minister's help. In the documents which I received from the department in relation to the EU-Mediterranean partnership and the Barcelona conference there is a sub-heading relating to British initiatives on investment barriers. Here it talks about Mr. Rifkind announcing a joint British-European Commission study into barriers to investment in the southern Mediterranean area. It says that the study will begin in the summer of 1996 with pilot studies in two countries and that the results will be presented to a conference in London early in 1997. Perhaps the Minister could tell us how early in 1997 is "early". In other words, has the conference taken place? When will it take place and, if it has taken place, what was the outcome? I appreciate that the Minister may not be able to be precise but, having asked the question, which is a genuine one, I am sure that the Minister will be helpful to the House and those outside the House. Otherwise, as far as we are concerned, we believe this initiative to be timely and welcome. The Government are to be commended for their actions in relation to it.

Lord Chesham

My Lords, I thank the noble Lord, Lord Graham of Edmonton, for the way he has received this order. It makes it very much easier, even if we are not exactly in a crowded House, when things can go through like this.

The answer to his question is that the meeting will take place on 6th and 7th March, next month. We are well on the way for that to happen.

On Question, Motion agreed to.