Foreign Affairs Council (Hansard, 26 July 1984)

§ Mr. Rifkind

The Foreign Affairs Council met in Brussels on 23–24 July. My right hon. and learned Friend the Foreign and Commonwealth Secretary represented the United Kingdom. My right hon. Friend the Minister for Trade was present for the discussions on trade subjects.

The Council discussed the 1984 budget overrun on which no agreement was reached at last week's Budget Council. My right hon. and learned Friend made it clear that supplementary financing, as proposed in the Council, was unnecessary, undesirable and inconsistent with the treaty. At last week's Budget Council savings and deferrals were identified which would reduce the estimated financing requirement by nearly one half. We have insisted that a further effort must be made to achieve economies and to find a solution in accordance with the own resources framework. The Budget Council will consider the question again in September.

The Council discussed several matters concerning the coal and steel industries. Ministers approved a proposal to give support worth 60 mecu (£35.5 million) to finance social measures to accompany restructuring in the coal industry. A similar package for the steel industry to the value of 62.5 mecu (£37 million) was given provisional approval pending further technical discussion. The Council also approved a proposal to enable the

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Commission to amend, within limits, Irish Steel Ltd's production quota in certain products in order to sustain the company's viability. Approval was granted on condition that the Commission monitors closely the effects of the revision on other European Community steel companies and that steel price discipline would be respected.

The Commission reported to the Council on the representations it was making to the United States authorities concerning the United States International Trade Commission's recent recommendation that imports of certain steel products, which it had found to be injuring the United States domestic industry, should be limited.

Commissioner Narjes introduced a paper calling for more rapid progress in completing the internal market. This was welcomed by my right hon. Friend the Minister for Trade.

The Council agreed to a supplement to the 1984 duty-free newsprint import quota of 70,000 tonnes. This will not be sufficient for Community newsprint consumers to the end of the year and the Commission undertook to make new proposals in September for a further supplement in the light of the Community's requirements.

The Council prepared its position for the ministerial conference with Spain and Portugal. The Community presented both Spain and Portugal with declarations on the institutional aspects of enlargement, on participation by both countries in the European Investment Bank and on a minor outstanding point in the economic and finance chapter. The Portuguese were additionally presented with a declaration on agriculture.

The Ministers of the Ten, meeting in political cooperation, issued a statement welcoming the recent amnesty in Poland and recalling that it has consistently been the wish of the Ten to return to a more normal relationship with that country as developments there permit. A copy of this statement has been placed in the Library of the House.

Ministers of the Ten took further their discussion of measures to deal with the problem of terrorism and diplomatic immunity. Work on these will continue.

Foreign Ministers signed a protocol on the status of the European Foundation.