Foreign Affairs Council (Hansard, 26 November 1980)

§ Sir Ian Gilmour

My right hon. and noble Friend, my right hon. Friend the Secretary of State for Trade and my hon. Friend the Minister of State, Department of Industry represented Her Majesty's Government at the Council, held on 24 and 25 November.

The Council discussed final preparations for the meeting of the European Council to be held in Luxembourg on 1 and 2 December.

The Council agreed proposals on the future of the association with Cyprus which were then put to the Cyprus Government at a meeting of the EC/Cyprus Association Council. In these proposals the Community agreed to move toward the second stage of association, as provided for in the 1972 agreement with Cyprus, starting on 1 January 1981. The present regime will continue to apply until 1 January 1982, when new and improved arrangements, to be negotiated in 1981, will come into force. These will apply to 1982 and 1983, with the arrangements thereafter, putting into effect the Community's further commitment under the association agreement to be negotiated from 1 January 1982.

The attention of the Council was drawn to the resolutions passed by the European Parliament at its October part-session.

The Council approved a regulation bringing the second Lomé convention into force for the Community. The convention should come into force on 1 January 1981.

In relation to the steel industry, the Council considered revised Commission proposals to provide aid for early retirement—including severance pay—and short-time working. There was general agreement that social measures were needed in the steel sector, but agreement was not reached on the specific proposals because of difficulty over the funding of the measures. Discussions will continue and the Council on 15–16 December will again discuss this subject.

Ministers authorised a satisfactory mandate for the Commission to negotiate arrangements for the import of steel from third countries in 1981.

A meeting with the Spaniards at ministerial level as part of the accession negotiations was held in the margin of the Council.

The Council discussed relations with Japan and issued a statement expressing its serious concern at the present state of trade between Japan and the Community. It called for a wide-ranging dialogue with Japan based on a common strategy and made clear its view that in order to promote such a dialogue a number of developments would 120W be essential. These include effective moderation in Japanese exports in sensitive sectors, and a clear commitment on the part of the Japanese Government to a substantial and early increase in imports of Community products, as well as improved opportunities for European investment and banking in Japan.

Ministers discussed arrangements for post-1980 access for New Zealand butter. My right hon. and noble Friend emphasised the Community's obligations to New Zealand and made clear that the Community owed an early and satisfactory answer to New Zealand. One member State, however, continued to insist that any further arrangement now agreed could be for only one year, and the question was referred back to the Agriculture Council on 8–9 December.

Ministers reviewed the position reached as regards economic co-operation with the Gulf States and the Yemen Arab Republic.

The Council reached agreement on a new structure for the Community's generalised scheme on tariff preferences for developing countries to take effect from 1 January 1981 and to run for 10 years. The Council now awaits the opinion of the European Parliament before formally adopting the new scheme.

The Council considered presidency proposals to provide for Greece to benefit from the quota section of the European regional development fund after accession on 1 January 1981, and for the consequential changes in the existing quotas of the present member States. No agreement was reached and discussions will continue in Coreper. It is likely that the subject will again be considered by the Council in December.

No agreement was reached on the European Court of Justice's proposals for enlargement of the court.

The Council discussed a draft regulation to govern the Community's programme of aid to non-associated developing countries but did not reach any conclusion.

Finally, the Council considered a Commission proposal for a voluntary restraint arrangement with Thailand designed to limit European Community imports of manioc and agreed that there should be further discussion in the Committee of Parliamentary Representatives.