Foreign Affairs Council (Hansard, 23 July 1980)

§ Mr. Hurd

My right hon. and noble Friend, my hon. Friends the Minister of State, Department of Trade, the Minister of State, Department of Industry and the Under-Secretary of State for the Environment and I represented Her Majesty's Government at this Council.

The Council considered the problems being created for Community exporters by Greek balance of payments measures. It was agreed that the President of the Council should write to the Greek Minister for European Community Affairs expressing the Community's concern.

Ministers reviewed progress in the Spanish and Portuguese accession negotiations. 262W In the margins of the Council meetings were held at ministerial level with the Spaniards and the Portuguese.

The Council discussed pre-accession aid for Portugal. The principle of such aid was agreed but the details were left to be settled later.

The Commission gave a further report on its efforts to find ways of dealing with problems over imports from the United States of certain synthetic fibres and chemicals. My hon. Friend the Minister of State, Department of Trade joined representatives of other member States in emphasising the seriousness of the situation facing European industry as a result of United States controlled feedstock prices. The Council invited the Commission actively to pursue its studies and report back.

Progress was made on carrying out the Council agreement of 30 May on the United Kingdom's budget contribution. On the Financial Mechanism Amending Regulation, the main outstanding points were resolved. It was agreed that the regulation would cover 1980 and 1981 in the first instance and would apply to 1982 if a decision is taken, in accordance with the agreement of 30 May 1980, that a solution along the lines of 1980–81 is necessary in 1982. On the regulation providing special measures in favour of the United Kingdom, it was agreed that work would continue with a view to decisions in principle being taken by the Council in September.

The Council agreed, subject to the approval of national Governments on the details, outstanding points in the draft regulation on the non-quota section of the regional development fund. Final approval by the Council is expected in September.

Ministers agreed to adopt on 15 September a mandate for further negotiations with Zimbabwe on her accession to the Lomé convention.

The Council favoured a resumption of negotiations on a third International Cocoa Agreement, provided a sound basis for negotiation could be agreed with cocoa producers.

It was agreed that at the United Nations Special Session the Community would co-ordinate closely with a view 263W to achieving a constructive common position in the global negotiations.

The Council approved signature in Bucharest on 28 July of the agreements between the Community and Romania on industrial products and the establishment of a joint commission, subject to a United Kingdom waiting reserve to enable completion of its scrutiny procedure.

It was agreed that a framework economic and commercial co-operation agreement between the European Community and Brazil, negotiated earlier this year, should be signed on 19 September.

The Council approved the annual report by the Committee of Permanent Representatives on co-operation between the Community and EFTA.

The Council discussed the draft architects directive and agreed to consider it further in September.

The Council agreed in principle to adopt a Commission proposal establishing quotas for imports from Egypt into the United Kingdom of two categories of textile products. My hon. Friend the Minister of State, Department of Trade, expressed concern at the quota levels proposed, but recognised that there were exceptional circumstances in this case. At the same time he emphasised that the British Government continue to attach the highest importance to the effective implementation of the Community's textile policy. The Commission accepted that this case should not be regarded as a precedent.

In response to a French request the Council discussed imports of manioc and agreed to return to the subject after Vice-President Gundelach's proposed visit to Thailand in September.

The Commission tabled a communication on trade relations with Japan. The Council took the view that the document required further study before there could be detailed discussion. My hon. Friend the Minister of State, Department of Trade stressed that in any contact wth Japan the Community would need to ensure that it did not make concessions except in return for concessions of at least equal value. He referred to the special sensitivity of trade in cars.

264W

The Commission consulted the Council about the steel anti-crisis measures. It is expected to announce later today its renewal for another six months, subject to the temporary suspension, of the minimum price for hot-rolled coil.