HC Deb 03 May 1988 vol 132 c369W
Mr. Bermingham

To ask the Chancellor of the Duchy of Lancaster what is the current situation regarding the conflict within European Community legislation with respect to the case for precedence of security considerations over the requirement to treat Community shareholders equally; and if he will make a statement.

Mr. Alan Clark

Article 221 of the EEC treaty requires that member states accord nationals of other member states the same treatment as their own nationals as regards participation in the capital of companies or firms, without prejudice to the application of the other provisions of the treaty. One of the latter, article 223, enables any member state to take such measures as it considers necessary for the protection of the essential interests of its security which are connected with the production of or trade in arms, munitions or war material.