HC Deb 20 December 1979 vol 976 cc316-8W
Mr. Rhodes James

asked the Lord Privy Seal if he will make a statement on the outcome of the Foreign Affairs Council held on 18 December.

Sir Ian Gilmour: At the Foreign Affairs Council on 18 December, the United Kingdom was represented by my hon. Friend the Minister for Trade, my hon. Friend the Minister of State, Department of Industry, and myself.

The Council reviewed the follow-up to the European Council. There was a brief procedural discussion of the United Kingdom budget problem, energy and telematics.

The Council agreed that it would examine the report of the Committee of Three Wise Men on Community institutions at a special, informal meeting in February.

A new mandate was agreed for negotiations for voluntary restraint of exports of textiles and clothing by Greece to the Community during 1980.

The Commission reported on its continuing discussions with the United States Administration about the problems of imports of United States synthetic fibres, and informed the Council of its intention also to make direct contact with the United States industry and to introduce import surveillance. My hon. Friend the Minister for Trade stressed the urgency for British industry and the need for proposals for action to be put forward in sufficient time for Ministers to take decisions at the 4–5 February Council. The Council agreed.

There was agreement to renew the steel anti-crisis measures for 1980 with some relaxations. Mandatory minimum prices will be applied in the first instance only to hot rolled coil. On the external side, fewer restraint arrangements will be concluded than in 1979, although there will be provision for more if requested. Agreement was also reached on a decision for regulation of aids to the steel industry.

Agreement was reached on arrangements for the existing coking coal sales aid scheme to run until the end of 1981.

Commission proposals for the utilisation of the non-quota section of the regional fund were discussed. There was no decision. The proposals have been referred back to permanent representatives for further discussion. Both we and another delegation objected to the present proposals because they take insufficient account of the needs of areas in Britain affected by shipbuilding and steel closures, and would not help to achieve convergence or reduce our net budget contribution.

There was agreement in principle on Commission proposals for an ad hoc decision to fund certain projects which would reduce capacity in the textile industries of some member States. A working group will now examine the list of projects. I made it clear that the United Kingdom would expect to receive a substantial allocation of funds of this kind.

The Council approved, without discussion, directives for negotiation of a transitional protocol to the EEC/Cyprus association agreement. The protocol will establish the interim trading arrangements to apply in 1980, pending negotiation of the arrangements which will apply under the second stage of the association agreement.

The text of a co-operation agreement with ASEAN was approved. Signature of the agreement is expected to take place early in 1980.

On the procedure for handling European Parliament resolutions, the Council agreed to revert to the question at an informal meeting of Foreign Ministers in February, in the context of consideration of the Three Wise Men's report.

It was agreed that there should be a discussion on North-South issues at the January meeting of the Council on the basis of a Commission paper.

Agreement has not yet been reached on the annual staff pay review.

During lunch with my ministerial colleagues I expressed the hope that all member States would now quickly lift sanctions against Rhodesia. At our request the Commission will shortly be making formal proposals to the Council providing for an appropriate preferential interim trading regime for Rhodesia.

Foreign Ministers also discussed Iran over lunch. There was general agreement that the Community should continue to give support to the United States in its efforts to secure the release of the hostages in Tehran.

A third ministerial meeting in the Spanish accession negotiations was held on the same day as the Council. The two sides exchanged views on progress in the negotiations to date and on the work to be done in the future. The Community tabled a paper on capital movements and the Spaniards submitted a reply to the Community's earlier paper on external relations.