HC Deb 12 March 1979 vol 964 cc77-80W
Mr. Molloy

asked the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement on the Council of Foreign Ministers of the European Communities held on 5–6 March.

Mr. Judd

At the Foreign Affairs Council on 5 and 6 March the United Kingdom was represented by my right hon. Friend the Chief Secretary to the Treasury, and myself.

The Council reviewed preparations for the European Council in Paris on 12 and 13 March. Items expected to be discussed include, in particular, the commission's

Mr. Joel Barnett

, pursuant to his reply, [Official Report, 8 March 1979; Vol. 963, c. 773], gave the following information:

papers on improvements to the CAP and on convergence; energy; employment and social policy; and the economic and social situation in the Community. Certain questions relating to the European monetary system may also be discussed.

Following a dialogue between the Council and a delegation from the European Assembly, the Council discussed the 1979 budget and the supplementary and amending budget proposed by the Commission. It was agreed that a budget Council would be held on 20 March to take decisions on future budget procedure and on the Commission's proposal. My right hon. Friend the Chief Secretary made clear that the British Government could not accept that the 1979 budget had yet been properly adopted, and that he regarded the Commission's proposals as a further stage in the 1979 budget procedure. He emphasised the need to find a better balance between agricultural and non-agricultural expenditure and to promote convergence through the budget. He said that the proposal for a higher level of regional development fund expenditure, though it involved a relatively small amount, was a useful step towards correcting this budgetary imbalance.

There was a lengthy examination of the present state of the negotiations for a successor to the Lome Convention. The Council reached agreement on a number of positions to be adopted by the Community in the next stage of the negotiations, which will be a meeting at ministerial level with the ACP countries in the Bahamas on 22 and 23 March.

Progress was made in determining the Community's position on a number of outstanding questions in the Greek accession negotiations. It was agreed to aim to complete the negotiations on 3 April, which is the date proposed for a final meeting at ministerial level with the Greeks.

The Council discussed in broad terms the Commission's proposals for a Community response to Turkish requests for improvements in Turkey's association arrangements with the Community. A number of questions were remitted for further study. The need to give Turkey a helpful response was generally recognised.

The Commission reported to the Council on the shape of the merging package in the GATT multilateral trade negotiations. A number of improvements were suggested by member States and the Commission was invited to make a further report to the Council on 3 April.

There was agreement on general guidelines for the Community position at the common fund negotiating conference which resumes in Geneva on 12 March. The Council attached importance to agreement being reached on the main elements of the fund during the forthcoming negotiations.

The Council also agreed that the fifth United Nations Conference on Trade and Development (UNCTAD V), which is due to take place in Manila in May, would constitute a politically important stage in the progress of the North-South dialogue and that the Community must play a positive and constructive role at the conference.

The United Kingdom pointed out that the Commission's revised proposals on aids to the steel industry still present legal difficulties. These will be discussed with the Commission and the subject is expected to be put to the Council again on 3 April.

The Council received a report from the Commission on the opening round of negotiations with the Romanians on arrangements covering trade in industrial products and the establishment of a mixed commission. The negotiations will be continued in due course.

There was a resumed discussion of a mandate for the Commission to negotiate a safeguard agreement between Euratom and Australia. The Council agreed to continue its discussions at its next meeting in April.

Under other business the United Kingdom emphasised the need for the proposed tariff concession on imports of new potatoes from Cyprus to be implemented without further delay. The Presidency intends to deal with the question at the Agriculture Council on 26 March or at a previous meeting of the Committee of Permanent Representatives.