§ Mr. Deakinsasked the Chancellor of the Exchequer if the United Kingdom as a member of the European Economic Community would retain its present freedom of action in the International Monetary Fund and the World Bank.
§ Mr. HigginsThe member countries of the Community have declared their intention progressively to adopt common policies in their relations with these organisations. If the United Kingdom becomes a member it would take part in this process in due course.
§ Mr. Deakinsasked the Chancellor of the Exchequer if it is a condition of the United Kingdom joining the European Economic Community that it must accept all Community measures taken to harmonise taxation; and if there is anything in the Treaty of Rome to prevent the harmonisation of direct taxation within an enlarged European Economic Community.
§ Mr. HigginsWe have made clear that if we join the E.E.C. we shall accept such measures of tax harmonisation as have already been agreed within the Community. As members, we would, of206W course, take our part in discussions on any proposals for tax harmonisation. So far as I am aware, the Treaty of Rome does not preclude the harmonisation of direct taxation, but there are as yet no proposals for harmonising the rates of direct taxes, whether personal or corporate. Any such proposals would be subject to unanimous agreement before adoption.