Foreign Affairs Councils (Hansard, 25 October 1983)

§ Mr. Rifkind

I represented the United Kingdom at the two Foreign Affairs Councils which have taken place during the summer recess. At the 19 September Council86W in Brussels Ministers discussed a Presidency paper setting out for consideration the main elements of an agreement on the future relationship between the European Communities and Greenland. The Council will discuss the paper further in November in the light of fresh Commission proposals.

The Council approved the Community's mandate for negotiations on a successor to the second Lomé convention. My right hon. Friend the Minister for Overseas Development subsequently represented the United Kingdom at the formal opening of these negotiations which took place in Luxembourg on 6–7 October.

At the 19 September Foreign Affairs Council and again at the 17–18 October Council I underlined our concern that the appropriations entered in the draft supplementary and amending budget No. 2 for 1983 in respect of risk-sharing payments to the United Kingdom did not discharge in full the obligation entered into by the Council in its conclusions of 26 October 1982 and called upon the Community institutions to take the necessary action as a matter of urgency to ensure that the United Kingdom received its entitlement in full.

Following an interim report to the September Council, the Commission made a further report to the October Council on its consultations in the GATT about United States measures against European Community special steel imports. The Council noted that, while there had been some limited progress, the United States attitude towards compensation was still unsatisfactory. The Council emphasised the importance of the quotas being managed in a manner which took fully into account the interests of European Community exporters, and of securing exemption from the United States measures for some products. The Commission is continuing urgent efforts to achieve an adequate settlement. There was general agreement in the Council on the need for renewal in 1984 of the arrangements for voluntary restraint on steel imports from third countries. The Commission's proposals for 1984 will be discussed further at the November Foreign Affairs Council.

At the October Council, Ministers agreed conclusions expressing grave concern over the continuing deterioration in trade trends between the Community and Japan. The full text has been deposited in the Library of the House. It reflected, in particular, agreement that vigorous efforts should be made to persuade Japan to take steps which would increase her manufactured imports; that the Community's action in the GATT should be considered again at a future meeting in the light of Japan's performance; and that it remained important than the yen should reflect better the strength of the Japanese economy. The Council noted the forthcoming discussions with Japan on moderation in exports to the European Community in sensitive sectors, and invited the Committee of Permanent Representatives to explore further the possibilities of industrial co-operation with Japan and a framework agreement on scientific and technical co-operation. A majority of delegations endorsed in principle the proposal to increase the tariff on digital audio discs. Taken together, these measures have the effect of emphasising again to the Japanese the need to take effective action to redress the trade imbalance with the Community.

In response to requests from several member states, including the United Kingdom, for a supplementary quota 87W of newsprint for 1983, the Commission agreed to submit proposals in the light of further talks between Community producers and consumers of newsprint.

The Council agreed on a mandate for the negotiation of a second financial protocol to the European Community-Malta Association agreement.

There was a short discussion of the institutional arrangements for determining the Community's food aid programme for 1984 and future years. We shall be seeking a further substantive discussion of this topic at the November Council.

In the context of the accession negotiations with Spain and Portugal, Ministers agreed a declaration on social affairs for presentation to the Portuguese at the next ministerial negotiating conference in November. Declarations on external relations, Ceuta and Melilla and social affairs were presented to the Spaniards at a negotiating conference which was held on 17 October in the margins of the October Council. At this meeting, the Spanish Foreign Minister welcomed the news that the agreement reached that day by the Agriculture Council on the reform of the Mediterranean agricultural regimes would enable work to begin on the agriculture chapter of Spain's accession negotiations.

A European Community-Cyprus Association Council was held at ministerial level on 18 October in the margins of the October Council; it was agreed that negotiations on progress towards customs union between Cyprus and the Community should begin as soon as possible.

During the summer recess there were meetings of the Special Council on 30 August, 20 September and 10–12 October to discuss the future financing of the Community and other issues covered in the Stuttgart declaration. My right hon. and learned Friend represented the United 88W Kingdom at all these occasions together with my right hon. Friend the Chancellor of the Exchequer on 30 August, my right hon. Friend the Minister of Agriculture, Fisheries and Food on 30 August and 10–12 October and my right hon. Friend the Financial Secretary on 20 September and 10–12 October. At those meetings, my right hon. and learned Friend explained our specific ideas for a safety net scheme for limiting net contributions to the Community budget, for a strict financial guideline for agricultural expenditure and for the further development of Community policies. A summary of the three papers that we have tabled in this negotiation has been published in the October supplement of the Treasury's "Economic Progress Report" and placed in the Library of the House.

The negotiations will continue at the next meeting.