Report by on the ministerial meeting with the Six (October 1962)

Caption: Following the meeting held in Brussels from 25 to 27 October 1962 between representatives of the United Kingdom and the governments of the Six, Edward Heath, , draws up a report on the progress in the negotiations for British accession to the European Communities. Copyright: (c) The National Archives of the United Kingdom URL: http://www.cvce.eu/obj/report_by_edward_heath_on_the_ministerial_meeting_with _the_six_october_1962-en-42c6876c-7b92-4402-bf78-b5fcc3f93d76.html Last updated: 01/03/2017

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The United Kingdom

and the 196 European Economic ctob ocia.

Report by the Lord Privy Seal on the meeting with Ministers of Member States of the rese ut a European Economic Community at Brussels from give October 25-27,~1962 ir C he ｾ＠ .d be lritj , on ) :ffec Presented to Parliament by the Lord Pr;vy Seal :he C by Command of Her Majesty L pre > the the llld 1 lfte1 LONDON ter 1 I , Dei HER MAJESTY'S STATIONERY OFFICE ~rom BIGHTPBNCB NET Cmnd. 1847

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mee~1ng, ncr uo.u: r•• • •• .. w a----· ---- _ _ _ & 3olu1 now proposed that the problem should be dealt with by the rE the tariffs on a number ot commodities, duty free or duty p1 quotas and the continuation ot trading arrangements with Brj transitional period while the trade agreements which these< desired with the Community were negotiated. There was no c these points but the I.Qrd Privy Seal aalced the Six to oonsic give their views at a later Miniaterial aeeting. lt-. A tuller account ot the t.taaua S.on on Aa•ooiation tor your information at Annex A ilo maa;, 1M.u,.-.~ ln the c theae ti80\Ul9iOD8 1M 81& av.,

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In a tatement made in the House of Con1mons on July 30 (Hansard, \ Tol.. 664 To. 15-, Cols. 34-35) the Lord Privy Seal undertook to issue a public statement after each finisterial meetino in the neootiations bet\veen the United !Gingdom and the member Go~ernments bof the European Nave E conomic Community ,vhich took place ,vhen the House ,vas not sitting. 2. Accounts of earlier i1inisterial meetings in Augu t and October have been published as Cmnd. 1805 and Cmnd. 1838. The follo,ving is an account of the 11inisterial meeting held in Brussels on October 25, 26 and 27. British ...\ griculture

3. Discussion of British agricultureｾ＠ related to the arranoementse to be made for transition morn the present British system of agricultural support mber, to the system ,vhich ,vill be Jn force in the enlarged Community ,vhen the Common Market stage..... is reached . 4. The British Delegation had already explained to the Members of the Community that. ,vhile the United Kingdom recognised that at the end of the transitional period the present British system of deficiency payments ,vould have to have been replaced by the arrangements agreed for the Community as a \vhole. the aim must be to make the transition as smooth as possible and adequate time should therefore be allowed for it. The Lord Privy Seal had put to his colleagues that the United Kingdom's arrangements for ; the commodity subsidies should be continued during this period of transition. ,ased but that the level of British market prices should be progressively adjusted vrou so that, by the end of the period, these prices ,votild be harmonrised ,vich Q"er those of the Community as a whole. This. together ,vith adjustments in ty. the prices guaranteed to the producer, ·would ensure that by the end of the m sh period of transition the commodity subsidies ,vould have disappeared. t ime 5. The Chairman, stating the view of the Members of the Community. said that, while they recognised that the transition should be gradual. they thought that if it were carried out in the manner suggested this \Vould give rise to difficulties within the enlarged Community. [n particular they con• sidered that British farmers would for a time be receiving certain guarantees

J not received by the farmers of the Community. The Community therefore wished to make a counter-proposal. This was that the system of guaranteed prices should be replaced, at the moment of U~i~ed Kingd~m _accession !o 1rse the Community, by a system of consumer subs1d1es when Justified and. m ld C exceptional cases, by producer subsidies. These subsidies should them• selves be phased out by the end of the transitional period which the ntim Community had agreed for themselves, namely by December 31. 1969. o.ris 6. The Lord Privy Seal said that this counter-proposal would involve serious problems. He pointed out, furthermore, that th_e Community had allowed themselves a transitional period of 7½ years; their counter-proposal would leave the United Kingdom with a transitional period of uncertain ran 3 al.t . th

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., ~gest€ h,ngth, but one which would in any <;Vent be Jess than that the pres 1a tior n1cn1bcrs of the Conununity woukl enjoy. It was c:JjfiicuJt to see how Jn some pep!) cases a period as short as 7 ! years could be justified, particularly since lOme s the United Kingdom would have to make changes in its agricultural system .ntain in moving towards 1that of the Community ·0f a wider ranging character lding than those which were being required of any of the present Member States. li ty• . The Lord Privy Seal sought clarification of the Community's view that the circu British proposal would create difficulties within the enlarged Community. fiea f' 7. In the exchange of views which follrowed the position of both sides was further explained, but it was not possible to reach agreement. It was ould · therefore decided that Ministers should consider the problem further and ' & ng As resume the discussion at a subsequent meeting. In the meanwhile any be w Delegation would be free to raiise technical questions for clarification at meetings of the Deputies. Seal New Zealand his C J ve it 8. The French Fol.'leign Min1siter informed rtJhe Conference, with reference actioJ to the Ministerial meeting of August 1-5 that, in his understanding, the statements made about New Zealand fnom the Chair on that occasion did not mean either that France was committed on the principle, without know• n the ing the method of application of that principle, or that she was committed )~ th• on the methods given the uncertainty in which France still found herself on the principle.

Association 9. Ministers held a restricted meeting to exchange views on the Association of overseas countries. The delegations of the Community gave an account of the furth(ir progress which had been made in the negotiation of the trade and financial provisions of the new Association Convention at a meeting in Brussels on October 23-24. 10. The Lord Privy Seal then referred to the problems raised by the decision of some Commonwealth countries not to avail themselves of the opportunity to associate with the Community, 1and suggested that these problems should be solved in such a way as to limit damage to the trade of the Commonwealth countries in question and at the same time safeguard the interests of both the existing associated countries and Commonwealth countries and territories which may wish to associate with the Community. The Members of the Community undertook to consider these remarks and give reactions at a subsequent meeting of Ministers. •• India, Pakistan and Ceylon 11. Agreement was reached on the text of a declaration which would be made by the United Kingdom and the Community stating their intention, i.f the United Kingdom joined the Community, to open negotiations with India and Pakistan within three months of accession. ne Of 12. The Members of the Community said that they were not prepared s.,,, . to agree to any suspension in the application of the Common External Tariff on textiles which had been provisionally agreed in August. For the rest the Members of the Community saw great difficulty in making 4

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.. . n) sub'"'tantial adju:tru nt in the rat of appli :ation f th t riff. theless they did n t ex"lude the po: ibility that. ,vben th nf r n to "'xan1in .. the agreement: as a "'hole, .., me adju-- tm nts might b n1 d administrative reasons.

l _. There \YJS fwther cliscus:ion of the p ints left un" ttle in th proYisional agreement rea hed on .AuE:u.st -· The {ember~ f the C m- - ｾ＠ munity pruposed certain redu~til_;ns or .:u -pen.:i0n f the mn1 n "Xt rnal tariff on a number of items. The- pr ")pa ·al~ will b" d i:('u_: .. "\d furth ~r at a future meeting- of ifinisters. British requests for nil duties ~oveml 14. The British request"' for nil dutie n almninium and u ,,,, print \\""re discussed. I •o agreement ,vas reached and di ·cussion ,vill be tak "D up again at a later meeting. The 11:embers f the C mmunity "rere n t in a position to discuss the BritLh request f ""r nil duties on other n1aterials. Future Programme 15. As had already been arranged, the next meeting of itini "'ter.., ,vill becin..... in Brussels on ｾ＠ Tovember 15. ber,

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