§ Mr. Finsbergasked the Secretary of State for Foreign and Commonwealth Affairs if Great Britain's membership of the European Economic Community will result in a need to alter the pattern and balance of overseas aid.
§ Mr. WoodI do not expect any great changes, but we should expect to share in the aid arrangements that succeed the present Yaoundé Convention. These would no doubt have some effect, which I cannot at present predict, on the pattern of our overseas aid.
§ Mr. Finsbergasked the Secretary of State for Foreign and Commonwealth Affairs what annual contribution the United Kingdom will have to make during the transitional period to the European Development Fund.
§ Mr. WoodI would refer my hon. Friend to the reply given to a Question from the hon. Member for Islington, South-West (Mr. George Cunningham) on 22nd February.—[Vol. 812, c. 4–5.]
§ Mr. Clinton Davisasked the Secretary of State for Foreign and Commonwealth Affairs if he will publish in the OFFICIAL REPORT a list of the subjects of negotiation in respect of which decisions with the European Economic Community will be deferred until after Great Britain has decided whether or not to enter the European Economic Community.
§ Mr. RipponIn regular statements and by last week's White Paper Her Majesty's Government have continued to provide the House with the fullest information on the negotiations with the European Economic Community. This will continue throughout the stages outlined by my right lion. Friend the Prime Minister in his statement on 17th June.—[Vol. 819, c. 644.]
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§ Mr. Denzil Daviesasked the Secretary of State for Foreign and Commonwealth Affairs what are the powers of the Commission of the European Economic Community in relation to aid granted by a member State in a manner incompatible with the provisions of the Treaty of Rome.
§ Mr. RipponThe powers of the Commission in this regard are specified in Article 93 of the Treaty of Rome.
§ Mr. Denzil Daviesasked the Secretary of State for Foreign and Commonwealth Affairs what, at the latest available date, was the average per capita income of an individual resident in the area covered by the European Economic Community.
§ Mr. RipponThe averageper capita income in the European Economic Community, using gross national produce statistics, is 2,271 U.S. dollars per annum.
The average income per employed person in the Community is 3,566 U.S. dollars per annum. This figure includes the value of earnings, social security contributions paid and fringe benefits provided by employers, but excludes self-employed and unearned income.
These figures are based on current prices and exchange rates, and relate to 1969, the latest year for which the information is available.
§ Mr. Denzil Daviesasked the Secretary of State for Foreign and Commonwealth Affairs how many regulations and directions were issued by the Commission of the European Economic Community in each year during the period from 1958 until 31st December, 1970.
§ Mr. RipponThe numbers of regulations, decisions and directives issued by the European Economic Community since 1958 are as follows :
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1958 56 1959 49 1960 35 1961 17 1962 250 1963 828 1964 949 1965 757 1966 983 1967 1,877 1968 2,600 1969 3,169 1970 3,257 14,826 A large number of these have lapsed or been superseded.
§ Mr. Denzil Daviesasked the Secretary of State for Foreign and Commonwealth Affairs if he will list those fields in which the Commission of the European Economic Community is given power to promulgate law-making acts on its own.
§ Mr. RipponUnder the Treaty of Rome establishing the European Economic Community, the Commission does not have the power to promulgate lawmaking acts on its; own but can issue regulations, decisions and directives and take measures to enforce the provisions of the treaty in the exercise of the powers conferred upon it by the Council of Ministers.
§ Mr. Denzil Daviesasked the Secretary of State for Foreign and Commonwealth Affairs in what circumstances the Commission of the European Economic Community may bring proceedings against the Council of Ministers in the European Court of Justice.
§ Mr. RipponArticle 173 of the Treaty of Rome prescribes that supervision of the legality of measures taken by the Council and the Commission other than recommendations or opinions shall be a matter for the Court of Justice. It shall, for this purpose, have jurisdiction in proceedings instituted by a member State, the Council or the Commission, on the grounds of lack of jurisdiction, infringements of important procedural rules, infringement of this treaty or of any rule of law relating to its application, or misuse of powers.
§ Mr. Clinton Davisasked the Secretary of State for Foreign and Commonwealth Affairs why he refuses to cause to be published and distributed at the expense of the Government fact sheets setting out the case against Great Britain's entry into the European Economic Community.
§ Mr. RipponThis action would be inappropriate. The current Factsheet series "Britain and Europe" sets out to put, in a convsnient form, the information the public is demanding on the European Economic Community issue. The Factsheets do not seek to lead their readers to one conclusion or another and, where relevant, contain information about possible disadvantages.
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§ Sir R. Russellasked the Secretary of State for Foreign and Commonwealth Affairs if he will explain the nature of the action which would be taken by the European Economic Community if a significant volume of trade with third countries were at risk of serious disruption during the transitional period ; and what will be the position after the transitional period has ended.
§ Mr. RipponAction by the Community could take a variety of forms according to the nature of the disruption. These could include, among other measures, day-to-day action at the level of the Community's Management Committee, amendment or modification of regulations, and action under Article 226 of the Treaty of Rome. The Community has promised prompt and effective action, which could be invoked at any time during the transitional period.
§ Mr. Deedesasked the Secretary of State for Foreign and Commonwealth Affairs if he will now publish in the OFFICIAL REPORT further details of the agreement reached with the European Economic Community on capital movements.
§ Mr. RipponFollowing is the basis of the agreement reached between Her Majesty's Government and the European Economic Community in relation to capital movements :
- 1. Her Majesty's Government agrees to adjust its exchange control rules in order to conform with the provisions of Community directives applicable to member states in relation to capital movements.
- 2. The necessary adjustments will be completed over a transitional period ending not later than five years after accession of the United Kingdom to the Community.
- 3. After liberalisation, transactions will be permitted in accordance with Community provisions, i.e. at the official rate of exchange or at a rate which does not diverge significantly or persistently from the official rate.
- 4. Particular categories of transactions will be liberalised not later than the various stages indicated in the list given below.
- 5. It is agreed that any part of the indicated timetable may be accelerated, if circumstances permit, at the discretion of the United Kingdom.
The Community has scheduled various types of international capital transactions in four lists : A, B, C, D. The directives which have been adopted by the Community call for freedom for transactions 181W on Lists A and B to take place at (or near) the official rate of exchange. In the case of List C restrictions may be maintained or reintroduced and List D is not required to be liberalised.
Following are the items in Lists A and B, with comments on the present United Kingdom position and proposals which the Community have endorsed :
List A
(1) Direct Investment
(Excluding purely financial investments which are only effected in order to secure for the investor indirect access to the money or financial market of the country concerned).Such investment is permitted at present, but largely on conditions of financing which limit the use of official exchange for outward investment and require some foreign currency inflow for inward investment. These conditions will be relaxed in two stages, the first on accession the second by the end of the second transitional year.(2) Liquidation of Direct Investments and Utilisation of Proceeds
To the extent that restrictions apply at present they will be removed by the end of the second transitional year.(3) Investments in Real Estate (except those covered by (1) or (2) above)
Purchases and sales of United Kingdom real estate by non-residents are already permitted freely. Purchases of real estate in other member states by United Kingdom residents, at present limited and required to be transacted through the investment currency market, will be liberalised by the middle of the transitional period (except where already liberalised as direct investment or in connection with mobility of labour.)(4) Gifts, Donations, Dowries
The present limits on official exchange transfers to European Economic Community countries will be removed by the middle of the transitional period.(5) Inheritances, Legacies and Estate Duties
Freely permitted already, except for certain restrictions on estate duty on foreign property inherited by United Kingdom residents, which will be liberalised when purchases of the type of property involved is liberalised.(6) Various Remittances by Immigrants and Blocked Funds of Non-Residents
Either do not apply or are freely permitted already.(7) Transfers of Capital Belonging to Emigrants
182WAt present any capital over £5,000 per family is restricted for four years. This restriction will be removed by the middle of the transitional period.(8) Granting and Repayment of Credits Connected with Commercial Transactions or Services in which a Resident Participates
Very few restrictions apply in practice at present. Such as do will be removed on accession.(9) Sureties, Guarantees, Pledges
To be dealt with, as now, under the rules applied to the underlying transactions, with liberalisation at the related stages.(10) Damages, Cancellation of Contract Charges, Royalties, etc.
Freely permitted already.List B
(11) Operations in Securities (The list specifies a variety of dealings in securities, shares and bonds).
Non-residents are already free to purchase and sell sterling securities in United Kingdom markets, provided direct investment is not involved. United Kingdom residents are able to deal in foreign currency securities, whether on European Economic Community or United Kingdom stock exchanges, only through the investment currency market or on the basis of foreign currency borrowing. This restriction will be removed by the end of the transitional period and replaced by arrangements which will permit dealings at (or near) the official rate of exchange, subject to verification and safeguards under Article 70(2) of the Treaty of Rome to prevent leakages of capital outside the Community.