Foreign Affairs Council (Hansard, 16 May 1984)

§ Sir Geoffrey Howe

The Foreign Affairs Council met in Brussels on 14–15 May. I represented the United Kingdom. My right hon. Friend the Minister for Trade was present for the discussions on trade subjects.

The Council discussed the estimated shortfall of some £1.6 billion (2.7 billion ecu) in the Community's budget this year and the Commission's proposal to raise a 2.3 billion ecu (£1.36 billion) loan from member states to finance it. I made clear our opposition to any proposal to finance current expenditure by borrowing and that savings must be found. Other member states also have serious reservations about the Commission's proposal. The Council therefore asked the Commission and other Councils to undertake detailed further work on the estimated size of the shortfall, and to make a sustained and vigorous search for savings. Only when that has been done can Foreign Ministers examine the legal and budgetary implications of the Commission's loan proposal.

The issue of budget imbalances was not on the formal agenda. While I was in Brussels I had discussions with the French presidency and with the Commission. These contacts, as well as discussions with other member states, will continue.

The Council made considerable progress towards agreement on a new ERDF regulation. A number of important United Kingdom objectives were achieved, including agreement that urban renewal projects could be eligible for fund support; satisfactory controls on Community as opposed to national programmes; and reaffirmation of the principle that any special measures for the Mediterranean countries (known as integrated Mediterranean programmes) would be considered within the framework of the Community's existing structural funds.

The Council agreed declarations on the Community's positions on the proposed new round of ministerial trade negotiations and on bringing forward by a year the tariff cuts planned under the Tokyo round for 1986 and 1987. Copies of these declarations are being placed in the Library of the House.

Ministers decided that the revised arrangement for Mediterranean fruit and vegetables agreed by Agriculture Ministers in October 1983 would come into effect on 1 June 1984. The Council discussed the follow-up to the recent EC/ACP ministerial meeting in Fiji at which negotiations on a successor to the present Lomé convention were taken forward.

At a ministerial conference with the Portuguese, in the margins of the Council, the Community presented Portugal with a substantive declaration on fisheries. The Community and Portugal also reached agreement on outstanding points in the taxation and rights of establishment chapters and on a declaration summarising progress so far in the agriculture chapter.

I raised the question of co-operation in the fight against terrorism and the abuse of diplomatic privileges. We agreed that officials should urgently consider the scope for a common approach amongst the Ten. The Ten also issued a statement condemning the Soviet military action in the Panjshir valley of Afghanistan. A copy of this is being placed in the Library of the House.