THIRTY - SIXTH SESSION OF THE COMMITTEE OF MINISTERS

MINUTES

of the meeting held at 10 a.m. in Strasbourg on 3rd May 1965

Present : NETHERLANDS Mr. W.J.D. PHILIPSE 1 NORWAY Mr. J. BOYESEN 2 AUSTRIA Mr. C. BOBLETER 1 SWEDEN Mr. S. LINDH 3 BELGIUM Mr. L. COUVREUR 2 SWITZERLAND Mr. F.T. WAHLEN, Chairman CYPRUS Mr. A. ARAOUZOS 3 TURKEY Mr. H. E. ISIK DENMARK Mr. P. HAEKKERUP UNITED KINGDOM Mr. Walter PADLEY 4 FRANCE Mr. C. H. BONFILS 4 Mr. Peter SMITHERS, Secretary General FEDERAL REPUBLIC Mr. P. MODINOS, Deputy Secretary General OF GERMANY Mr. K. CARSTENS 5 Mr. R. LUC, Political Director GREECE Mr. D. PAPPAS 6 Mr. H. LELEU, Secretary of the Committee ICELAND Mr. P. EGGERZ 7 of Ministers. 8 IRELAND Mr. B. DURNIN Mr. F.T. Wahlen, Federal Councillor, Head ITALY Mr. A. FANFANI of the Swiss Federal Political Department, took LUXEMBOURG Mr. M. FISCHBACH 9 the Chair ar 10.15 a.m. MALTA Mr. G. BORG OLIVIER The CHAIRMAN, on behalf of the Committee, greeted Mr. Borg Olivier, the Prime Minister and Minister for Foreign Affairs of Malta. He was glad that that country, so closely bound to the 1. Secretary of State for Foreign Affairs, in place of West by its history and culture, had gained its Mr. B. Kreisky, Minister for Foreign Affairs. independence, and he extended a cordial wel- come to Mr. Borg Olivier. 2. Permanent Representative of the Belgian Govern- ment to the Council of Europe, in place of Mr. P. H. Spaak, Minister for Foreign Affairs. Mr. BORG OLIVIER (Malta) said that he was pleased and proud to take part in such a distinguish- 3. Minister for Commerce and Industry, in place of ed gathering. He looked forward to a real gain Mr. S. Kyprianou, Minister for Foreign Affairs. from the admission and accession of Malta to the 4. Permanent Representative of the French Govern- Council of Europe. He hoped that Malta would be ment to the Council of Europe, in place of Mr. M. able to make a real contribution to the proceed- Couve de Murville, Minister for Foreign Affairs. ings of the Council. 5. Secretary of State for Foreign Affairs, in place of Mr. G. Schroeder, Minister for Foreign Affairs. Mr. FANFANI (Italy) associated himself with the welcome to the Prime Minister of Malta, and 6. Secretary of State for Foreign Affairs, in place of Mr. S. Costopoulos, Minister for Foreign Affairs. 1. Permanent Representative of the Netherlands Government to the Council of Europe, in place of 7. Permanent Representative of the Iceland Govern- Mr. J.M.A.H. Luns, Minister for Foreign Affairs. ment to the Council of Europe, in place of Mr. G. I. Gudmundsson, Minister for Foreign Affairs. 2. Under-Secretary of State for Foreign Affairs, in place of Mr. H. Lange, Minister for Foreign Affairs. 8. Permanent Representative of the Irish Government to the Council of Europe, in place of Mr. F. Aiken, 3. Permanent Representative of the Swedish Govern- Minister of External Affairs. ment to the Council of Europe, in place of Mr. T. Nilsson, Minister for Foreign Affairs. 9. Deputy Minister for Foreign Affairs, in place of Mr. P. Werner, President of the Government and 4. Minister of State for Foreign Affairs, in place of Minister for Foreign Affairs. the R?. Hon. M. Stewart, Minister for Foreign Affairs.

- 90 - Minutes — Thirty-Sixth Session of the Committee of Ministers — 3rd May 1965 - 10 a.m. said he was sure that in so doing he was inter- As for countries which were not in formal preting the feelings of the Italian Government relationship with the Council of Europe, he and people. The presence of Malta within the wished to refer to Rumania and Hungary. The Council of Europe showed that the work done by Rumanian Ambassador in London had asked for the Council was beginning to bear fruit and was information on Council of Europe Conventions, a good sign for the future. particularly those open to non-Members, and general information on the Council of Europe Mr. PADLEY (United Kingdom) wished to was supplied. A member of the Embassy staff in associate the British Government with the wel- Paris had visited the Secretariat and after further come to Malta. The United Kingdom had jointly documentation had made a detailed inquiry about sponsered her membership with Italy. She was a the Centre for Mediterranean Agronomic Studies. Member of the Commonwealth, and one of the oldest and proudest countries in Europe. He felt A visit had also been paid to the Council sure that the Prime Minister of Malta and his by a representative of the Hungarian Embassy in colleagues would pay a valuable contribution in Paris, asking for the same sort of information. this and future meetings of the Council of Europe. He had told the Secretary General how great the value of the visit was ; in the past Hungary had The SECRETARY GENERAL, speaking on thought that bilateral relations were the most behalf of the Secretariat, welcomed the member- important, but they were now changing their ship of Malta, which now brought the number of view, and the Secretary General thought this a Members to the auspicious number of eighteen. most significant development. The Foreign Min- The Secretariat looked forward to working with ister of Hungary had said in a recent visit to the Maltese Government and Parliament. Vienna that his country did not exclude co- operation with the Council of Europe in the future. I. Adoption of the Agenda There had also been demands for document- The CHAIRMAN, observing that there were no ation by correspondence, chiefly by academic comments on the proposed agenda, declared it bodies. Four had been received from Hungary, adopted (Appendix 12). three each from Rumania and East Germany, and two from Czechoslovakia.

II. Relations with third countries This was all that the Secretary General had to report since last December. The estimate The SECRETARY GENERAL said that the made then had proved correct; there was much Council of Europe represented only a part of interest in Eastern Europe in the technical work Europe, but had close relations with certain of the Council, but there was much caution. other countries ; in particular he wished to refer Governments would continue to think hard be- to Spain, Finland, the Vatican and Yugoslavia. fore further actual developments. As instructed With regard to Spain, there were no new develop- by the Committee of Ministers, no initiatives ments to report since last December; she con- were being taken by the Secretariat. There might tinued to be represented at the CCC and the CCJ. be more frequent meetings in future, particularly at other international organisations, for example A Finnish observer continued also to attend representatives were attending the UNESCO these bodies. Under the procedure for admission Study Group in Budapest and the Conference on of non-member countries at other organs without Universities at Dubrovnik. formality, Finland was represented at the Euro- pean Committee on Crime Problems. It would be helpful, he concluded, if Govern- ments would continue to give the Secretariat their There were no developments since Decem- views before December next on the important and ber with regard to the Vatican. Yugoslav observers, delicate matters involved in further relationship however, after an absence of some time, had with the Eastern bloc. returned to the Committee on Higher Education and Research.

1. See page 215.

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Mr. PADLEY (United Kingdom) said his ritory, and that her frontiers were not in question. Government had welcomed the decision in De- Both countries were interested in further technic- cember to respond favourably to approaches from al co-operation ; and the Deputy Prime Minister countries in Eastern Europe. He agreed with the of Czechoslovakia was coming to the United Secretary General that there was need to remem- Kingdom this summer. ber their sensitivity and development must not be expected or sought too quickly. Mr. BOBLETER (Austria) referred to the visit of President Klaus to the Council of Europe, and Referring to the British Foreign Minister's said that he had spoken since then on television visits to Yugoslavia and Czechoslovakia, he directly to the people of Yugoslavia in Serbo- said that they were made in response to a mutual Croat. He felt this was a successful contribution wish for closer contacts, and constituted a step which showed the importance of direct contacts forward in relations between their countries, in by Heads of State. accordance with the policy of developing closer links approved by this Committee and by other He emphasised the desire of Austria to build international organisations in the West. closer links with Yugoslavia. Austria was well placed to do this because of her common frontier No British Foreign Minister had visited and long historical contact. Austria wanted to Belgrade since 1957, nor as far as he could see a continuation of friendly visits such as find out had any British Foreign Minister ever that undertaken by Chancellor Klaus with Eastern visited Czechoslovakia. European countries ; in these the strengthening of economic links was especially important. To In Yugoslavia, respective points of view on suggest that an ideological change in Com- current international problems had been exchang- munism was coming about, it is true, would be ed and sympathy had been enlisted for the utopian. The visit of the Hungarian Minister for Western point of view. Yugoslavia was in many Foreign Affairs to Austria had marked another instances ready to say that while our analysis step forward in the normalisation of relations of problems differed, our aims were not dissimilar. between the two Danube States. One of the aims On Vietnam the Yugoslav Government, though of Austrian foreign policy was to normalise such critical of American policy, agreed that inter- relations. During the visit to Vienna of the national talks should be held as soon as pos- Hungarian Minister for Foreign Affairs, he and sible. Dr. Kreisky, the Austrian Minister for Foreign Affairs, had signed a certain number of agree- As for Czechoslovakia, less common ground ments. Their political importance should not be was found and President Johnson's speech on exaggerated but they were of some interest to the Vietnam met with great criticism. Policies were population on the Austrian borders. One of them discussed in general, but the main emphasis provides for the abolition of visas for diplomatic was on the encouragement of bilateral contacts passports. between the two countries. Contacts had been maintained with Budapest The Yugoslavs agreed on the need for sol- and Belgrade especially in the field of co-oper- vency of the United Nations, and had the same ation on the Danube Commission. He repeated fundamental interest in disarmament. The Czechs what he had said previously in Geneva, that argued that US aggression was responsible for Austria would be very happy if the Federal the position in Vietnam, and that the US had no Republic of Germany joined the Danube Com- genuine desire for peace. Mr. Stewart firmly mission. rebutted this. The Czech Government were pre- occupied with the Munich Agreement. Mr. Stewart A Ministerial visit was to be made in early had made the British point of view quite clear : July to Bulgaria. The Austrian Government that the Agreement had been dead for years, that wanted to see links between all Danube States there could be no future claims on Czech ter- in the widest sense of the term and in particular to encourage commercial exchanges.

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The CHAIRMAN concluded from this speech useful part in considering for each case separate- that Austria, because of her history and geogra- ly the possibility of some way of associating phical position, was in a position to play an these countries with its work. effective part in the development of a process that called for much patience. III. Political aspects of European Mr. CARSTENS (Federal Republic of Germany) economic integration said that on the subject of links between Coun- cil of Europe countries and Eastern Europe he The CHAIRMAN asked the representative of had little to add to what he had said at the Min- the French delegation to speak, since France at isterial meeting in Paris in December. He found present held the chairmanship of the EEC Coun- the speeches of the United Kingdom and Austrian cil of Ministers. delegates very interesting; he would like to see a continuing exchange of views on such relations. Mr. BONFILS (France) said that since the He considered that the Secretary General in last meeting of the Committee of Ministers the describing the technical contacts there had been implementation of the Common Market had con- between the Council of Europe and Eastern tinued, firstly in the agricultural field, an essen- Europe had outlined the correct policy to be tial sector because the progress made in agri- followed. He said that Germany approved of such culture must balance that entailed by customs technical contacts but considered that they disarmament by means of. the intra-Community should proceed with caution as had been in- tariff and application of the common external dicated by other speakers. tariff. Thanks to the co-operative spirit of all concerned, an agreement had been reached on Mr. PAPPAS (Greece) said that he had follow- 15th December, the importance of which should ed with interest the statements by the represent- once more be stressed : as from 1967 there would atives of Great Britain and Austria, and was glad be a free cereal market throughout the territory to find that the German Government shared their of the Community with a single price fixed at a views and appreciated the efforts made by their suitable level. That was almost two and a half countries under the auspices of the Council of years ahead of programme, and the acceleration Europe. Greece, for her part, had done her utmost was likely to help towards the institution of a to smooth out the differences which separated single market for beef, milk, fats and rice. her from her neighbours ; she had succeeded in bringing to a close her historic disagreements Progress with economic union had also been with Bulgaria and she had restored cordial re- made. On 2nd February a regulation had been lations with Yugoslavia; she was now working adopted by the Council on agreements and con- to reconcile the divergencies, which were minor certed practices, stipulating the conditions in ones, separating her from Rumania. She would which they would be authorised or prohibited. continue her efforts in the same peaceful spirit Harmonisation of legislation was continuing, towards a settlement of all problems arising with- particularly in the fiscal field and, if all went in her geographical sector, hoping in this to well, a joint purchase tax system should be receive the same support from the Council of achieved. Finally, some success had been Europe as she had had in the past. gained in co-ordinating the anti-cyclical policies adopted by member States in order to moderate Mr. FANFANI (Italy) said that his country or halt the inflationary tendencies that had was also following with interest and sympathy appeared at the beginning of 1964. the evolution of the States of Eastern Europe towards increasing autonomy. That of course was It was well understood that EEC had no in- bound to be a long-term prospect, because such tention of becoming a self-contained group, and evolution was hindered by the ideological, it had continued to develop its relations with economic and military interdependence of all third countries, particularly in Europe. Associa- the Communist countries of Europe. It should, tion with Greece had benefited the economy of however, be furthered by coherent political dis- that country : in 1964 its exports to EEC had cussion and by the development of cultural, increased by 25 %, and the Community had lent economic and trade relations : it must be en- it $33,000,000 for investments. The Association couraged without being forced, and within these Agreement with Turkey had entered into force on limits the Council of Europe could play a very 1st December 1964. Agreements with other out-

- 93 - Minutes — Thirty-Sixth Session of the Committee of Ministers — 3rd May 1965 - 10 a.m. side countries were being prepared, and some had been reached and the reduction by the results might be expected in the coming months. United Kingdom of its temporary surcharge on imports from 15 to 10 % marked this improvement. The Community also realised its respons- Mr. George Brown in his speech to his fellow- ibilities in reducing obstacles to international members of EFTA had explained the economic trade : that was why it was taking an active part measures which had been taken by Her Majesty's in the multilateral negotiations at Geneva. On Government and he had convinced them that the 16th November it had tabled a list of exceptions surcharge was in reality only an extraordinary which, in its opinion, should be excluded from temporary measure to endorse while long-term the proposed tariff reductions. Three factors policies to restore the strength of sterling were might have led it to lengthen this list. First, the conceived and put into effect. The Council of protection enjoyed by the Community's industry Ministers had taken Mr. Brown's speech as an because of the common customs tariff was affirmation of faith in the future solidarity of moderate as compared with that enjoyed by the EFTA countries which had left the Ministers industries of its major competitors, particularly with a sense of confidence in the strength of the United States. Secondly, the Community's the pound and the basic economic strength of trade balance has steadily worsened of recent the United Kingdom. years : in 1963-64 its deficit had reached some 3,000 million dollars. Finally, industrial firms A new source of strength to EFTA had within the Community were in full evolution and resulted from the establishment of a Committee had not yet reached dimensions commensurate to review the economic structure and position of with the existence of a large market. In con- the Free Trade Area which was to have its first fining itself to a moderate list of exceptions meeting in July. Their intention was that the the Community had therefore shown some degree Committee should review national economic of restraint; it had wagered on its future progress, policies with a view to increasing the amount of feeling that the greater its cohesion the more integration between member States. liberal its policy could be. It would continue to take part in the lowering of customs barriers The value of EFTA was clearly demonstrated particularly in Europe. For international trade by the figures - an increase of 17-18 % in inter- in agricultural products it had proposed a plan EFTA trade during the last year and a total which amounted to nothing less than a "new growth in the last 5 years of no less than 35 %. deal", whereby all State intervention expedients This growth had not been the result of an in- in the production of, and trade in, such products crease of trade with the United Kingdom alone should be a matter for global negotiation, the so- but between all the Members of the Free Trade called "subsidy figure" method. The Community Association. had also made suggestions for regulating trade in certain major products in such a way that They were continuing the reduction in tariffs producers could obtain remunerative prices. steadily - in December and in March further Finally, it hoped for the elimination of certain reductions had taken place and Finland, a coun- methods of customs valuation which were no try associated with EFTA only in 1961, had longer in line with international trade conditions. now achieved full parity with the other member States. The CHAIRMAN said that in the absence of the Austrian Minister responsible, Mr. Haekkerup, An Agricultural Review Committee had been the Danish Foreign Minister, would make a established to carry out a general review of statement on behalf of the EFTA Committee of agricultural problems amongst which the sub- Ministers. sidised import of eggs from non-member States was an immediate problem. Mr. HAEKKERUP (Denmark) spoke on behalf of his Ministerial colleagues of EFTA. The last Finally, he said that EFTA had set up a three months had seen the most difficult period large number of internal working bodies to study of the history of EFTA but since the February the problems which would result from the establish- meeting of Ministers in Geneva a turning point

- 94 - Minutes — Thirty-Sixth Session of the Committee of Ministers — 3rd May 1965 - 10 a.m. ment in a year and a half's time of EFTA as a Her Majesty's Government's long-term aim full free trade area. was the evolution of a common European Market (including the present EEC and EFTA). Provided The CHAIRMAN thanked the Secretariat for such a market was of the sort they hoped to see preparing a very full study of the consequences emerge there was no reason why Commonwealth of the division of Europe into two economic or other connections should prove an obstacle. groups. In spite of the justifiable caution of the The Kennedy Round of tariff negotiations was a authors' conclusions, that study showed that a most promising means of progress but we must very definite tendency towards a slowing-down also be ready to make use of every form of of trade expansion between these two groups had bilateral agreement to span the divisions. become apparent in 1964, while there had been an increase in trade within each group. This Talks on political unity should be open to warning sign must be taken into account if it all European Governments interested in taking was desired to prevent the rift between them part. He believed that his Government were pre- from increasing. As the French delegate had pared to go at least as far as most others in said, the Kennedy Round was one means of working out common lines of policy. He hoped achieving this. that his speech and the British Prime Minister's initiative at Chequers would have dispelled any Mr. PADLEY (United Kingdom) welcomed the doubts about the seriousness with which his reports of his French and Danish colleagues on Government regarded the present economic the present position in EEC and EFTA. They divisions in Europe and their determination to had shown the value of the Council of Europe as help in removing them. a forum in which to discuss European problems in the widest possible context. Neither EEC nor Mr. PHILIPSE (Netherlands) thanked the EFTA alone constituted Europe. In the Com- Secretary General for the document on the GATT mittee of Ministers they should not lose sight of trade negotiations. His Government had studied their long-term aim of a fully integrated Europe. it and found it very useful. It was clear that trade The Prime Minister of the United Kingdom had between the two Groups was still growing, but recently stressed in New York the present tragic he noted that the political aspects of the situa- consequences of the economic divisions in tion were hardly referred to in this document, and Europe. he regretted this, since future economic co- operation might be endangered if the political He welcomed the valuable study made by the problems were not solved. Secretariat on the political aspects of European economic integration (Doc. CM (65) 62), which Mr. CARSTENS (Federal Republic of Germany) showed that the rate of the growth of trade within thanked in particular the Danish and French the two economic blocs had risen more sharply Representatives for their speeches; he also than between the different groups. He felt that wished to thank the Secretariat for all the in- the long-term efficiency of the European economy formation which they had provided. Germany would be threatened if group interests were pro- thought that the unification of Europe should be moted at the expense of the welfare of Europe as encouraged by all possible means, and with it a whole. He reminded the Committee that eco- the organisations bringing together all - or nearly nomic divisions were bound to lead in the long all - the countries of Europe. The Council of term to political divisions. Her Majesty's Govern- Europe was one of these bodies and it was right ment were determined not to stand idly by to therefore in the Committee of Ministers to dis- watch the fragmentation of Europe ; they wished cuss the political implications of the EEC and to bridge the economic gap which was so rapidly EFTA blocs. widening. For this reason the Prime Minister of the United Kingdom had agreed with the suggestion After hearing the speeches and reading the by the Scandinavian countries that the next EFTA Secretary General's note, he thought that two meeting in May at Vienna should be held at Heads of Government level.

- 95 - Minutes — Thirty-Sixth Session of the Committee of Ministers — 3rd May 1965 - 10 a.m. important facts stood out : first, that commercial ascertain that Italy and Great Britain were in and economic exchanges were developing favour- agreement on the need to fill in the gap between ably within the two Groups, and secondly, that the two groups and also on the procedure by which the same favourable development was taking that could be done. place between the two Groups, and also with other countries in Europe which were not Mem- Mr. BOBLETER (Austria) said that Austria, bers of either. lying as it did in the economic heart of Europe, was grateful to the Secretary General for the Although more success had been achieved in document which he had provided. It was a valu- the past than expected, the difficulties must not able paper, which would provide an excellent be forgotten. The Federal Government believed basis for discussion. He had followed the that all means of overcoming these difficulties speeches with interest, and was happy to note must be employed. The French Representative that all representatives had expressed a wish had mentioned the agreements of the EEC States for an enlarged European economic area, and for with member States of the Council of Europe, this to come about as rapidly as possible. and similar agreements with non-member States. This was one way of making progress but even Austria was closely linked with EEC - in- more important was the Kennedy Round - the deed half her exports went to it. Her member- GATT trade negotiations. This was a particular- ship of EFTA also had produced great advantages, ly appropriate means of reducing - if not over- and she had been entirely satisfied with her coming - difficulties. Perhaps this came under membership. In the Council of Europe member the next item on the agenda, but it was certainly countries of EFTA, EEC, and others were repre- closely connected. sented, and he wished therefore to make a brief plea for understanding of Austria's position. He felt that the final aim, which was the Referring to the Austrian declaration made at unification of the whole of Europe, should be Brussels to the Council of Ministers of EEC on borne in mind at all times, and that it must be 28th July 1962, the speaker said that his coun- achieved by every possible means. There was try sought association with EEC not only because the difficulty of the two rival blocs, but he the Austrian economy was closely linked with hoped that all the member States of the Council the economic systems of the member countries of of Europe would try their hardest to overcome EEC but also in virtue of the European function them. If the GATT negotiations were successful, which it had been for centuries Austria's pri- the difficulties would be considerably diminished. vilege to perform and which was conspicuous today in the substantial prestige she enjoys with Mr. FANFANI (Italy) recalled that the Italian the European peoples of East and South-East Government for years had been following a policy Europe. If satisfactory relations could be establish- that favoured the liberalisation of international ed with EEC while she retained her neutrality trade, the repercussions of which were parti- and complied with her other international com- cularly notable in Western Europe. They were mitments, it would be not merely in her own therefore keenly interested in any means taken economic interest but would be a significant and to avoid perpetuation or increase of the gap pioneering step in achieving unity in Europe. between EEC and EFTA. Wishing to facilitate the unification of Europe, they thought it desir- Referring to the visit to Yugoslavia, he said able to establish some parallelism between the that the discussions had been very free, and he process of unification that was going on within had noted with interest that the Yugoslav repre- each of the two groups. In this connection, sentatives attached considerable importance to Mr. Smithers had taken some interesting steps, their export of industrial and agricultural com- and it was certain that the Council of Europe modities to EEC and their consequent feeling had an important part to play in this field. At that these markets must be preserved for the their recent conversations in Rome, the British future by an agreement. It was also interesting and Italian Prime Ministers had been able to

- 96 - Minutes — Thirty-Sixth Session of the Committee of Ministers — 3rd May 1965 - 10 a.m. that Yugoslavia had no objection to Austria's tween them. Like the Federal Government, the efforts to come to agreement with EEC at Brussels. French Government thought the best means of achieving even greater liberalisation was both to The Austrian application to EEC had been enter into bilateral negotiations and to discuss considered by the Committee of Ministers in matters within GATT at Geneva. The United Brussels on 2nd February, and on 2nd March Kingdom Representative had led them to expect under the chairmanship of the Foreign Minister that an important step might be taken : France of France, one of the signatories of the State would of course consider any possible proposals Treaty, the decision was made to instruct the with care and interest. Commission to start negotiations. Austrian neutrality was referred to in the preamble. In The SECRETARY GENERAL expressed his conclusion, he wished to stress again the wide thanks for the very complimentary things that had European context within which the Austrian path been said about the document. He thought it could be seen by all delegates to be a further showed that the Secretariat contained some very step towards a wider economic integration of able staff and he hoped that Governments would Europe with which they all could agree. make full use of them.

He continued by saying that Austria's path The CHAIRMAN was glad to find that all in building up a wider European market must be States were showing much good will in trying to understood in the context indicated by his find a solution to the very serious problems that speech on Item 1 on the agenda. The economic arose. There was no doubt a long road to be unification of Europe could not be achieved by covered between intention and achievement; at adding EEC to EFTA, but Southern and South- all events, good will was an essential condition Eastern Europe must always be considered too. for success. He thanked the Secretary General for this very valuable document. IV. GATT tariff negotiations Mr. HAEKKERUP (Denmark) also congratulat- ed the Secretary General on the report, but The CHAIRMAN, as leader of the Swiss del- pointed out that it dealt only with total trade egation, declared his Government's great in- figures and was not divided into commodities. terest in the GATT negotiations. All of the He considered that even a division between in- Council of Europe countries had flourishing in- dustrial and agricultural trade figures would dustries and were trying to sell their products show a different picture. Denmark had experienc- outside their own frontiers, and the Governments ed a decrease in her overall agricultural exports encouraged this because dynamic expansion was to EEC of 5 % i.e. approximately 40 % for the foundation for the prosperity of nations. the agricultural commodities under the old regul- American initiative towards a substantial reduction ations and 15-20 % already for agricultural in the obstacles to international trade was there- commodities coming under the new regulations. fore in accord with the spirit of the times. Denmark had accepted the EEC regulations on The Kennedy Round negotiations had begun a Agriculture but thought that their implementation year ago. The Consultative Assembly and Com- had been too protectionist. mittee of Ministers of the Council of Europe had continually shown the keenest interest in them ; Mr. BONFILS (France) said that his country it was natural for that interest to increase as was of course most anxious that trade liberalisation the work at Geneva gathered momentum and should continue since this, as had been pointed encouraged hopes of practical results. Very out by the representative of the Federal Repub- recently the Secretariat had prepared a memo- lic, had made it possible to intensify trade not randum on these negotiations, which was very only within each of the two groups but also be- interesting and deserved close study by every one.

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In spite of the difficulties that were to be he hoped that discussion on cereals would begin expected, it appeared that for a few weeks past at the meeting of the GATT Cereals Group on the process had been accelerating, and it might 17th May. He hoped that it would be possible for be said that the true negotiations were now EEC to table its cereals offer before the meeting. going on. They were of interest first of all to those countries which had declared themselves The United Kingdom would like to see willing to accept an across-the-board reduction vigorous progress with the negotiations. Their in their tariffs : besides the United States and success would increase trade with less develop- Japan there were European countries. The last- ed countries and with Eastern Europe and spread named were looking for a substantial effort on both economic and political liberalisation. the part of the United States and Japan, but it was their own attitude which would largely Mr.CARSTENS (Federal Republic of Germany) determine final success : they must therefore associated himself with the remarks of the confirm their resolution and their enthusiasm in President and the United Kingdom delegate. He order to achieve the greatest possible results. considered that discussion on the preceding agenda item had already shown that a successful No one could deny that the lists of exceptions outcome to the GATT negotiations would over- tabled by five countries seemed lengthy ; it must come the difficulties of the two European however be recognised that an effort had been groupings. They would also have favourable made to reduce them to a minimum. political effects in line with the Statute of the Council of Europe and achieve a greater liberal- The Secretariat memorandum stressed the isation of trade in Europe and intensify trade fact that the general lowering of trade barriers between Europe and North American countries. would considerably mitigate the harmful con- The result would also be beneficial to the sequences of the present division in Western developing countries. He considered that very Europe. A realisation of the importance of the great efforts should be made to achieve the ex- Kennedy Round for the European countries tremely ambitious aim of a 50 % tariff cut, could not fail to be satisfactory to all, thanks to which far exceeded that set in preceding GATT the effect of the most-favoured-nation clause, negotiations. an excellent instrument for negotiation with non- European countries, which would thus be encourag- He agreed with the President that negotia- ed to widen their offers. A certain degree of tions were going well and, given the political solidarity among the European participants was will to succeed, he felt that they would bring one of the necessary conditions for a satis- about the necessary sacrifices and compromises factory final result. It was no less in the in- to bring negotiations to a satisfactory conclusion. terests of the United States to reduce especial- ly those of its tariffs - unfortunately numerous - Mr. LINDH (Sweden) said that the Swedish which were still at a very high level. Government attached great importance to the multilateral GATT tariff negotiations commonly He felt sure that the European Governments known as the "Kennedy Round". He agreed with were fully aware of these facts and that the the Swiss Government's views (as recently given instructions they would give to their negotiators to them by the President) on the need for reci- would reflect that state of mind. procity of compromises and for substantial tariff cuts, so as to achieve a really European aspect Mr. PADLEY (United Kingdom) welcomed to the negotiations and to diminish the regrettable the President's introduction and said that the divisions existing in the policy of Europe. United Kingdom Government regarded the Ken- nedy Round as of the utmost importance. A Mr. PHILIPSE (Netherlands) said that on successful outcome would do much to lessen the April 27th his country's new Prime Minister had economic division of Europe. He drew attention publicly stressed the importance that his Govern- to the fact that the United Kingdom industrial ment attached to the Kennedy Round. Its success exceptions list was easily the shortest of such would further, in the framework of the Atlantic lists. The United Kingdom was playing a con- Alliance, the activation of world trade. For this structive part in the agricultural negotiations and reason his Government had welcomed the recent

- 98 - Minutes — Thirty-Sixth Session of the Committee of Ministers — 3rd May 1965 - 10 a.m. statements of President Johnson. He urged on V. Atlantic partnership the Committee the need for speed in considering Recommendation 410 and he was grateful for The SECRETARY GENERAL reported that a the note by the Secretariat (Doc. CM (65) 52). party of Senators and Congressmen were arriving on a visit to the Council of Europe. He was con- He said that in December 1964 the Agricult- vinced of the great educative value of these ural Council of EEC had made real progress in visits as a result of the frank exchange of opi- negotiations, especially on cereals. The need nions which delegates could indulge in. His own now was for plain speaking and for concrete sug- experience as a parliamentary delegate had gestions and the exceptions in any agreement shown this. He was convinced that the Americans would need to be kept within reasonable limits, coming here could learn a lot of the political otherwise the exceptions might prove to be the thinking of Europe, especially of those countries rule. He urged the Council that the time was now which were not in NATO. ripe for down to earth negotiations to promote European trade. The United States had joined the Wines and Spirits Committee of the Council of Europe - Mr. BOBLETER (Austria) said that he would now unfortunately quiescent. be brief as the views of his Government were substantially in accord with those of the other The CHAIRMAN said that the discussion was speakers. He hoped that the Kennedy Round closed and proposed that the debate should con- would lead shortly, not only to a reduction in tinue at 3 p.m. He reminded them that a cere- tariffs, but also to remove certain obstacles to mony marking the entry of Malta into the Coun- trade, especially with the United States. Austria cil of Europe was to take place at 12.45 p.m. would do her best to bring the negotiations to a fruitful conclusion. The CHAIRMAN, finding that no other mem- bers of the Committee wished to speak, declared the discussion closed. The meeting adjourned at 12.15 p.m.

- 99 - THIRTY - SIXTH SESSION OF THE COMMITTEE OF MINISTERS

MINUTES

of the meeting held at 3 p.m. in Strasbourg on 3rd May 1965

Present : MALTA Mr. G. BORG OLIVIER NETHERLANDS Mr. W.J.D. PHILIPSE 1 AUSTRIA Mr. C. BOBLETER 1 NORWAY Mr. J. BOYESEN 2 BELGIUM Mr. L. COUVREUR2 SWEDEN Mr. S. LINDH 3 CYPRUS Mr. A. ARAOUZOS 3 SWITZERLAND Mr. F.T. WAHLEN, Chairman DENMARK Mr. P. HAEKKERUP TURKEY Mr. H.E. ISIK FRANCE Mr. C.H. BONFILS UNITED KINGDOM. Mr. Walter PADLEY 4 FEDERAL REPUBLIC Mr. Peter SMITHERS, Secretary General OF GERMANY Mr. F. PRILL 5 Mr. P. MODINOS, Deputy Secretary General GREECE Mr. D. PAPPAS 6 Mr. R. LUC, Political Director ICELAND Mr. P. EGGERZ 7 Mr. H. LELEU, Secretary of the Committee IRELAND Mr. B. DURNIN 8 of Ministers ITALY Mr. A. MARIENI9 The meeting was resumed at 3.15 p.m. LUXEMBOURG Mr. M. FISCHBACH 10

VI. Future intergovernmental work of the 1. Secretary of State for Foreign Affairs, in place of Council of Europe Mr. B. Kreisky, Minister for Foreign Affairs. 2. Permanent Representative of the Belgian Gov- THE SECRETARY GENERAL reported that ernment to the Council of Europe, in place of Mr. P. in December 1963, following Recommendation H. Spaak, Minister for Foreign Affairs. 376 of the Consultative Assembly, a Committee 3. Minister for Commerce and Industry, in place of of Experts had been appointed to report on the Mr. S. Kyprianou, Minister for Foreign Affairs. harmonisation of measures in legal, social and 4. Permanent Representative of the French Govern- economic fields. The experts' suggestions had ment to the Council of Europe, in place of Mr. M. resulted in the study by the Deputies of select- Couve de Murville, Minister for Foreign Affairs. ed subjects with a view to the establishment of 5. Permanent Representative of the Government of a precise programme of priorities. These were the Federal Republic of Germany to the Council of of course aimed at "European unification in Europe, in place of Mr. G. Schroeder, Minister for general". In the course of their work it had Foreign Affairs. become apparent to the Deputies that there 6. Secretary of State for Foreign Affairs, in place of were real difficulties in this task, for which Mr. S. Costopoulos, Minister for Foreign Affairs. reason they were bound to come to a standstill 7. Permanent Representative of the Iceland Govern- ment to the Council of Europe, in place of Mr. G.I. 1. Permanent Representative of the Netherlands Gudmundsson, Minister for Foreign Affairs. Government to the Council of Europe, in place of 8. Permanent Representative of the Irish Govern- Mr. J.M.A.H. Luns, Minister for Foreign Affairs. ment to the Council of Europe, in place of Mr. F. 2. Under-Secretary of State for Foreign Affairs, in Aiken, Minister of External Affairs. place of Mr. H. Lange, Minister for Foreign Affairs. 9. Permanent Representative of the Italian Govern- 3. Permanent Representative of the Swedish Gov- ment to the Council of Europe, in place of Mr. A. ernment to the Council of Europe, in place of Mr. T. Fanfani, Minister for Foreign Affairs. Nilsson, Minister for Foreign Affairs. 10. Deputy Minister for Foreign Affairs, in place of 4. Minister of State for Foreign Affairs, in place of Mr. P. Werner, President of the Government and the Rt. Hon. M. Stewart, Secretary of State for Foreign Minister for Foreign Affairs. Affairs.

- 100 - Minutes — Thirty-Sixth Session of the Committee of Ministers — 3rd May 1965 - 3 p.m. pending a full review of the organisation's they presented particular difficulties. There activities by the Secretariat. Today's discuss- was therefore a great need for a central pro- ion had therefore to be based on the paper of gramming unit, and a small one had been set up 29th April last on future intergovernmental work in January, to enable all elements in the gener- of the Council of Europe. al programme of work, whatever their source, to be reviewed and criticised against the general Mr. Peter Smithers continued that when he background. He wished to stress that this small had joined the Council of Europe a year ago as unit had no authority of its own, but was merely Secretary General he had appreciated the ex- an instrument of compilation and criticism for tremely good results which had been achieved use by member countries as required. by the work of the Consultative Assembly, but on the governmental side they had not achieved He was also struck by the present focus of much that had been hoped for at the start of attention on disagreements ; relatively little their work. attention was given to a systematic study of He had inaugurated a number of administra- the fields of possible agreements. There must tive reforms in an effort to overcome this. surely be many if they could be isolated. There- fore there was a task here for the Secretariat First, an independent expert had been ap- to survey the field of intergovernmental work pointed to study a number of urgent problems and to prescribe the areas of possible agree- concerning the functions and structure of the ment. Council of Europe in the social field. If one had a central programming unit, and Secondly, there was the local government could identify the areas of possible agreement, field - a very important matter for the whole one was still left without any criterion as to European movement - in which there was much what should be in the actual programme of work. ground for improvement. Three bodies were in- Each individual project was evaluated in isola- volved : the European Conference of Local tion and not in pursuance of any ultimate ob- Authorities, the Committee of Ministers, and jective. the Assembly itself. Substantial progress had already been achieved since last year in this The present paper before the Committee of field, and some improved procedures had been Ministers resulted from the three difficulties devised. which he had mentioned. In a Council of 18 Members, where procedure was not based on a Turning to more general matters, he thought Treaty detailing all its aims and purposes, that an attempt should be made to establish the there was little hope of progress in intergovern- priorities of work in the Council of Europe. This mental work if the task was left entirely to was difficult for individual Governments them- Governments. Here was the role of the Secret- selves for lack of any overall review, and the ariat. Foreign Ministers were, with respect, too Secretariat found themselves more and more busy, and were unlikely to lose sleep over the obliged to propose programmes of work to Gov- work of the Council of Europe. Therefore it ernments for their approval or otherwise. was the duty of the Secretariat, after giving close study to the views of individual Govern- Faced with this task of establishing priori- ments, to make proposals to those Governments. ties, he saw some striking deficiencies in the These must be examined minutely, altered and present situation. The Council of Europe was modified, and then finally accepted or not. a very complex body, but it contained no central programming unit. There were almost 60 com- He wished to stress that his memorandum mittees of experts, yet they were all fixing on the future intergovernmental work of the their own individual programmes as they wished. Council of Europe contained many ideas con- Some subjects were left on one side, either tributed by individual Governments. Much work because they were not thought of, or because had gone into the draft and it had been altered

- 101 - Minutes — Thirty-Sixth Session of the Committee of Ministers — 3rd May 1965 - 3 p.m. in many ways to meet individual points of view, Mr. BOYESEN (Norway) said that he was and as it now stood was intended to embrace entirely in favour of the ideas outlined by the all previous planning projects. He also wished Secretary General in the paper before the Com- to draw attention to the nature of the lists at mittee. He appreciated the efforts made to the end of the document which were merely ex- rationalise the work of the Secretariat and to amples of the kinds of projects envisaged with- make projections for the future. He anticipated in particular categories. Governments need not beneficial results for the work of the Council of approve these lists, since they were not in any Europe. way definitive. Mr. HAEKKERUP (Denmark) said that he The paper related its proposals to the work had studied the document with great interest in of the Communities ; consultation between the the outline it provided of the future trends in Council of Europe and EEC, and between the the development of the Council of Europe. How- Council of Europe and EFTA, was already ever he viewed with some trepidation the pros- good, and the procedures in the memorandum pect of more and more organisations in Europe, were nothing new. No action was proposed in and would like to see the Council of Europe the paper which could not already be taken working more in co-operation with other Euro- under existing powers. Thus the existing posi- pean and international organisations. His Gov- tion was not infringed in any way either for the ernment was very interested in this preliminary Communities or for the Council, with one ex- work and he expressed his whole-hearted accept- ception, namely a suggestion concerning partial ance of this document. agreements ; this was inspired by a letter to the Secretary General by Mr. Rey, and was thus Mr. PHILIPSE (Netherlands) said that he backed by the Commission. agreed in principle with the contents of the document as an outline towards the establish- He reminded the Committee of Ministers that the substance was not in this paper, but in ment of general European norms. He expressed the actual drawing up of a programme of work. a slight hesitation concerning item 7 on page 8 This document itself would in no way limit but did not wish to go into detail about it. Governments from drawing up such a programme Mr. BONFILS (France) paid a tribute to the as they pleased. The acid test would be the resulting programme actually submitted to Gov- Secretary General for his efforts over several ernments, and just as much delicate negotiation weeks in preparing Document CM (65) 64 revised with Governments had produced this paper, so and in giving some explanations of detail which, in his own words, were rather delicate. It was would much more of the same process of con- quite natural that the Secretary General of such tact and consultation be required in formulating that programme. an organisation as the Council of Europe should wish to know at least his middle-term programme Finally, he could not envisage the actual of work and that he should be anxious about the form of the final programme, but his personal procedure for deciding upon priorities so that view was that it would probably be in phases more coherent action could be planned. over a number of years, and approached sector by sector. The conclusions of the paper itself But even though at present the various act- needed no elucidation. Much money, many per- ivities of the Council of Europe might appear sonnel, and great effort had been put into the confused, inadequate and often overlapping, it Council of Europe by its member Governments ; should not be forgotten that since the institu- he was sure that even greater success would tion was created, that is to say for nearly six- attend these contributions if the work of the teen years, they had been subject to continual adjustment resulting from the opinions express- Council of Europe could be comprehensively ed by parliamentarians to Governments, the planned to meet an agreed ultimate objective. reactions of the Governments to those opinions THE CHAIRMAN thanked the Secretary and the initiatives taken by the Governments General not only for his very interesting state- themselves. That dialogue must continue, and ment but for his work in preparing the memoran- dum on which he had just commented.

- 102 - Minutes — Thirty-Sixth Session of the Committee of Ministers — 3rd May 1965 - 3 p.m. the Secretary General must be well aware that of the document prepared by the Secretary Gener- the balance-sheet of the Council of Europe's al for an extension of the political role of the work would be the net result of the political Council of Europe. The potential danger of the views of the Assembly and of the joint political present division of Europe into two economic will of the 18 Governments. groups was likely to have repercussions at the political level and to aggravate the divergences Both the Assembly and the Governments which were delaying the construction of Europe. had already realised that it was necessary to The Secretary General's proposals might there- bring some sort of order into the work. On the fore prove very useful. It seemed desirable to one hand, the Assembly had drafted a programme establish closer collaboration between the of work which had been the subject of an ex- Council of Europe and EEC, at the same time change of views between its members and the preserving the particular responsibilities of each Governments. The Committee of Ministers, on of these Organisations. The Council of Europe the other hand, had decided in December 1963 would continue to work according to its tradi- to ask the Deputies to hold a kind of stock- tional methods, but would have to take into taking : it instructed the Committee of Experts account the achievements of EEC. That was to report on the possibility of preparing Con- merely a common-sense requirement. Before the ventions similar to those in force in the other Committee of Ministers could enter on this path, existing economic groups, and also to make it would be necessary to specify in which sectors specific proposals regarding those sectors in co-operation must be established between Brus- which it might be possible to establish Euro- sels and Strasbourg. To that end, he hoped that pean standards, within the field of competence the Secretary General would present a detailed of the Council of Europe. programme to the next meeting of the Committee, The work of the experts and the Deputies Mr. PRILL (Federal Republic of Germany) had made it possible to secure some results up expressed his support for the statement made by to the time when it was asked whether some his French colleague : many points he had made order of priority could not be established for were shared by the Government of the Federal the questions to be studied. The Secretary Republic of Germany. He viewed with satis- General could fittingly take that work into faction any initiative to reactivate the work of account along with the Assembly Recommenda- the Council of Europe and considered that many tions, the proposals of the Governments and excellent suggestions were made in the memoran- those of the bodies with which the Council dum though it left one or two questions open. maintained close relations. However, considered in conjunction with the previous documents, it provided a useful bridge While the Governments, of course, could for future inter-State co-operation. always decide which subjects should be accept- ed, it was desirable that the programme should Mr. PADLEY (United Kingdom) welcomed take into account, in weighing up the results the Secretary General's initiative and endorsed achieved or likely to be achieved within the his suggestion that he should now prepare a pro- European Economic Community, the philosophy gramme of work for consideration and approval underlying the Rome Treaty, which implied a at the next meeting of the Committee of Minis- balance between advantages gained and con- ters. The view of Her Majesty's Government re- cessions granted. It would not do to finish up mained that the creation of common European with some restriction of the field of EEC under standards would be easiest where neither EEC the influence of a kind of division of labour be- nor EFTA had yet decided on its policy. The tween that organisation and the Council of Secretariat and Ministers' Deputies had already Europe. given some consideration to the fields in which agreement might be reached, and they should be Subject to these remarks, and with the re- given a renewed mandate to pursue action on quest that they be taken into account when pre- these lines. He understood that the Secretary paring and carrying out the work, the French General intended to continue his discussions Representative expressed his agreement with with the Commission of EEC, and hoped that the Secretary General's proposals. he would also keep closely in touch with other appropriate economic or functional organisations Mr. MARIENI (Italy) stressed the importance and with Governments which might have suggestions relevant to the programme of work.

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It would be helpful if he could from time to time Secretaries General of the various international report to the Committee on the results of his organisations now existed and were increasingly consultations. employed. The programming unit and the Pro- gramme Sub-Committee of the Committee of Minis- Mr. PAPPAS (Greece) congratulated and ters were considering suitable subjects for future thanked the Secretary General. discussion. He thanked the distinguished dele- gate from Austria for his remarks. He concluded Mr. FISCHBACH (Luxembourg) also congrat- that their programme would make a real contri- ulated the Secretary General on his excellent bution to the achievement of a greater Europe. statement, which indicated his desire to intens- ify the Council of Europe's activities. Some THE CHAIRMAN once again expressed to speakers had expressed their complete agree- the Secretary General his hopes that his efforts ment on the proposed programme, others had would be successful. made some reservations, but all had accepted it in principle. It would be desirable, however, that further details of this programme should be VII. Date and place of the 37th Session of the worked out in agreement between the Secretary Committee of Ministers General, the Committee of Ministers and the Commissions of the European Communities. THE CHAIRMAN proposed that the Commit- tee should hold its 37th Session of 10th and 11th Mr. BOBLETER (Austria) thanked the Secret- December in Paris ; the colloquy with the rep- ary General both for his written and oral state- resentatives of the Assembly would be held on ments. He wished very briefly to support the the same day. concrete proposals of the Secretary General. Agreed. Mr. LINDH (Sweden) thanked the Secretary General on behalf of the Swedish Government and welcomed the ideas underlying the document VIII. Other business before the Committee of Ministers. The Secretary General should continue to formulate those Mr. BOBLETER (Austria) wished to draw working programmes which he had in mind and attention to the work of the Local Authorities the target date of December 1965 should be met. Committee and the long weekend that the Secret- ary General and his assistants had arranged THE CHAIRMAN said that the Swiss Govern- with the Austrian Authorities and which had ment very much hoped that the Secretary Gener- been spent at Innsbruck. He wished to convey al's efforts would be successful. He thought the gratitude of the Mayor of that town, Mr. that he was expressing the Committee's wish in Lugger, and expressed the hope that the Secret- asking him to draw up a detailed programme of ary General would seek to reinforce the adminis- work which could be submitted to the next meet- trative means placed at the disposal of Council ing of the Committee (Agreed). of Europe activities in the field of local authori- ties. THE SECRETARY GENERAL in summing up thanked the Committee of Ministers for the THE CHAIRMAN thought this was a good decision they had just taken, on behalf of the method of spreading the European idea in all Secretariat. He agreed with the Swedish delegate countries. As a Swiss citizen, he believed in that the working out of a concrete programme movements which had their origin in measures would provide the answer to the problems arrived taken at municipal level. He felt sure that in the at around the table. The Danish Foreign Minister same way Europe Day, which was to be cele- had spoken of the division of labour between the brated in two days' time, would contribute to Council of Europe and the Communities and he popularising the European cause. felt that while the Communities should work ad hoc on specific problems, the Council of Europe should work towards long term objectives. It was IX. Press communiqué certain that certain subjects presented difficul- ties and would need intensive effort to overcome The Director of Information read the draft them. It was a fact that "hot lines" between the

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Press communiqué, which, after discussion, was important problems of Europe. Since he was adopted as it appears in Appendix 13 1. going to succeed him, he would try to follow his example so far as he was able. Closure of the Session. THE CHAIRMAN thanked his successor and Mr. ISIK (Turkey) on behalf of the Commit- all the representatives of the Governments for tee, thanked the Chairman, who had presided their co-operative spirit. He repeated his thanks over their meetings graciously and authoritative- to the Secretary General and all his staff. ly, thus enabling the representatives of the Gov- ernments to concentrate their efforts on the most The meeting rose at 4.45 p.m.

1. See page 216.

- 105 - THIRTY - SIXTHSESSIO N OF THE COMMITTEE OF MINISTERS

OFFICIAL REPORT

of the meeting held at 10 a.m. in Strasbourg on 3rd May 1965

Present :

AUSTRIA Mr. C. BOBLETER 1 NORWAY Mr. J. BOYESEN1 BELGIUM Mr. L. COUVREUR 2 SWEDEN Mr. S. LINDH 2 CYPRUS Mr. A. ARAOUZOS 3 SWITZERLAND Mr. F.T. WAHLEN, Chairman DENMARK Mr. P. HAEKKERUP TURKEY Mr. H.E. ISIK FRANCE Mr. C.H. BONFILS 4 UNITED KINGDOM. Mr. Walter PADLEY 3 FEDERAL REPUBLIC 5 OF GERMANY Mr. K. CARSTENS Mr. Peter SMITHERS, Secretary General 6 GREECE Mr. D. PAPPAS Mr. P. MODINOS, Deputy Secretary General 7 ICELAND Mr. P. EGGERZ Mr. R. LUC, Political Director 8 IRELAND Mr. B. DURNIN Mr. H. LELEU, Secretary of the Committee of ITALY Mr. A. FANFANI Ministers LUXEMBOURG Mr. M. FISCHBACH 9 MALTA Mr. G. BORG OLIVIER NETHERLANDS Mr. W.J.D. PHILIPSE10 Mr. F.T. Wahlen, Federal Councillor, Head of the Swiss Federal Political Department, took the 1. Secretary of State for Foreign Affairs, in place of Chair at 10.15 a.m. Mr. B. Kreisky, Minister for Foreign Affairs. 2. Permanent Representative of the Belgian Govern- THE CHAIRMAN. - Gentlemen, the Sitting is ment to the Council of Europe, in place of Mr. P.H. open. Spaak, Minister for Foreign Affairs. 3. Minister for Commerce and Industry, in place of Before starting on the agenda I should like Mr. S. Kyprianou, Minister for Foreign Affairs. on your behalf, and with special pleasure, to 4. Permanent Representative of the French Govern- greet Mr. Borg Olivier, Prime Minister and Minis- ment to the Council of Europe, in place of Mr. M. ter for Foreign Affairs of Malta. We are all glad Couve de Murville, Minister for Foreign Affairs. that independence has dawned for this country 5. Secretary of State for Foreign Affairs, in place of which is so closely linked with the history of Mr. G. Schroeder, Minister for Foreign Affairs. Western culture. I hope that Mr. Borg Olivier will 6. Secretary of State for Foreign Affairs, in place of feel at home on our Committee and I am sure that Mr. S. Costopoulos, Minister for Foreign Affairs. we shall benefit from his counsel. 7. Permanent Representative of the Iceland Govern- ment to the Council of Europe, in place of Mr. G.I. Gudmundsson, Minister for Foreign Affairs. 8. Permanent Representative of the Irish Government to the Council of Europe, in place of Mr. F. Aiken, 1. Under-Secretary of State for Foreign Affairs, in Minister of External Affairs. place of Mr. H. Lange, Minister for Foreign Affairs. 9. Deputy Minister for Foreign Affairs, in place of 2. Permanent Representative of the Swedish Govern- Mr. P. Werner, President of the Government and Minis- ment to the Council of Europe, in place of Mr. T. ter for Foreign Affairs. Nilsson, Minister for Foreign Affairs. 10. Permanent Representative of the Netherlands 3. Minister of State for Foreign Affairs, in place of Government to the Council of Europe, in place of the Rt. Hon. M. Stewart, Secretary of State for Foreign Mr. J.M.A.H. Luns, Minister for Foreign Affairs. Affairs.

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Mr. BORG OLIVIER (Malta). - Mr. Chairman, I. Adoption of the Agenda may I say how very grateful I am to you and how pleased and proud we all are to be here represent- THE CHAIRMAN. - Gentlemen, we may now ing independent Malta among this very dis- proceed to the adoption of the agenda. Are there tinguished gathering. We hope that we will profit any comments on this item ? None. by our admission and accession to the Council and contribute our small part to the proceedings The agenda is adopted 1. of this important Council. The second item on the agenda is "Relations THE CHAIRMAN. - I thank the representative with third countries." of Malta and call on the representative of Italy.

Mr. FANFANI (Italy) (Interpretation). - Mr. II. Relations with third countries Chairman, I should like to associate myself with the words of welcome you have spoken to the THE CHAIRMAN. - I call on the Secretary Prime Minister of Malta, who is representing a General. new member State of the Council for the first time here on this Committee. In associating my- Mr. Peter SMITHERS (Secretary General). - self with these greetings I am certain that I inter- Mr. Chairman, the Statute of the Council of pret not only the feelings and the will of the Europe indicates that we should work for greater Italian Government but also the sympathy of all unity amongst our Members. But our member the Italian people. We are glad to have with us States are only a part of the total of European in the Council of Europe the representative of an nations. Perhaps I might be allowed on behalf of ancient and noble people, which is very close to the Secretariat to say on this occasion how Italy, not only from the geographical point of warmly we welcome the fact that a European view. State has passed from the ranks of the non-mem- ber States to those of the member States, thus It seems to us that the accession of Malta to bringing our membership up to the auspicious the Council of Europe bears fresh witness to the figure of 18 and how much we in the Secretariat appreciation shown for our work by the States look forward to working with the Maltese Govern- and peoples of Europe. We welcome the event. ment and Maltese Parliamentarians in the years We congratulate the Council of Europe and hope ahead. that it will prove a token of the success of the work which we are carrying out. Our relations with non-member States in Europe are divided into those with whom we are THE CHAIRMAN. - I thank the representative formally in contact and those with whom we are of Italy and call on the representative of the not. We work formally over a considerable range United Kingdom. of topics with Spain, Finland, the Vatican and Yugoslavia. Since our last meeting there have - Mr. PADLEY (United Kingdom). - Mr. Chair- been no particular developments so far as Spain man, on behalf of Britain I would like to associ- is concerned. She works as a Member of the CCC ate myself with the welcome that you and Mr. and as an Observer in the CCJ, our main cultural Fanfani have given to the Malta delegation. We and juridical organs. jointly sponsored Malta's membership along with Italy. Malta is, of course, a Member of the Com- So far as Finland is concerned, she of course monwealth and has special ties with Britain. She continues to be an Observer in both those organs. is also one of the oldest and proudest nations in We are now putting into effect the new procedure Europe. We are quite sure that her distinguished agreed upon by Governments whereby Finland Prime Minister and his colleagues will make may be admitted without formality as an Observer valuable contributions to the proceedings of this to any of our organs which she wishes to take Conference and the meetings in the future. part in. Under this procedure she has recently joined our rather important European Committee THE CHAIRMAN. - I thank the representative on Crime Problems as an Observer. of the United Kingdom.

1. See page 215.

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There is nothing new to report so far as the arian Foreign Minister, during a visit to Vienna, Vatican is concerned. said in reply to a journalist's question, that he did not exclude the possibility of certain co- So far as Yugoslavia is concerned, Yugoslav operation in technical matters between Budapest Observers have returned to the work of the Com- and the Council of Europe. mittee on Higher Education and Research, in the persons of two extremely distinguished Yugoslav Thus we have had a number of demands for professors. They had been absent from this Com- documentation by way of correspondence from mittee for some time hitherto. countries in Eastern Europe, mainly from Uni- versities and Government bodies ; four from Hun- So far as European non-member States are gary, three each from Rumania and East Germany concerned with whom we are not in formal rela- and two from Czechoslovakia. tions, there have been some developments since our December meeting when your Committee took These are all the significant developments certain decisions in this matter, and I shall sum- that have taken place since December last. In marise them only very briefly. In the case of their sum total they add up in my view to an indi- Rumania we were requested by the Rumanian cation that our estimate then was correct, namely Ambassador in London to provide the Rumanian that there was likely to be a considerable amount Government with a great deal of information about of interest in Eastern Europe in the technical Council of Europe conventions, particularly work of the Council of Europe but that that in- those which are open to non-member States, and terest would be manifested in a very cautious about the work of the Council of Europe general- way, that we might expect a number of enquiries ly. This information was of course supplied in as to what we were doing, and that the Govern- accordance with the directive which we had been ments concerned would continue to reflect upon given. In addition to that, a member of the staff the situation for some time before any substantial of the Paris Embassy of Rumania, Mr. Mihail, development was to be expected. So far as the who has hitherto visited Strasbourg from time to Secretariat is concerned it has strictly observed time at the time of the Assembly Sessions, asked the instructions of your Committee, namely that to come to Strasbourg to pay a visit to the Sec- it should not take initiatives in this matter, but retariat to obtain information about our activities. that if it were approached it should respond in a He has subsequently, after having been given friendly and welcoming fashion. I should say further documentation, made a detailed enquiry that there are some indications that in the future about the possibilities which might be offered by we may be meeting Eastern European countries the International Centre for Advanced Mediter- more frequently in other international organisa- ranean Agronomic Studies which is operated tions. We have, for example, already invitations jointly by the Council of Europe and OECD. on hand to send representatives to Budapest to a study group organised by UNESCO on the use of So far as Hungary is concerned a visit was audio-visual apparatus in education, something paid to Strasbourg by Mr. Nystor, who is a mem- about which we know a good deal on our cultural ber of the staff of the Hungarian Embassy in side here. And we have also been asked to send Paris, who asked for information of a rather a representative to Dubrovnik to a conference similar character to that asked for by the Ruman- organised there on "The Universities Today". ians, and who told us subsequently that he had found his visit of very great value. He remarked I think that is all that I need trouble the to me in the course of conversation something Committee with at this time. It will be of great which I thought significant when he said that his help to us in the coming months before the next country had hitherto thought that bilateral rela- meeting in December if Ministers are able from tions were really the only ones of interest to them, time to time to give us any guidance or views but since the experience of the Von Platen Com- they may have in this matter so that we may act mittee in Geneva they were beginning to take a with discretion and correctness in a question different view. In the very recent past it will not which is of course of the very greatest delicacy have escaped attention that Mr. Peter, the Hung- as well as importance.

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THE CHAIRMAN. - I thank the Secretary view. This is important in the light of the influ- General for his interesting communication. ence exercised by the Yugoslavs among the non- aligned Powers. Gentlemen, the discussion is open. In Czechoslovakia Mr. Stewart also took the Mr. PADLEY (United Kingdom). - Mr. Chair- opportunity to explain our policies, but his main man, we warmly welcomed the agreement reached object was to encourage the expansion of bi- at the last Ministerial meeting to respond favour- lateral contacts between the two countries. ably to approaches by Eastern European Governments in the technical sphere. This is The Yugoslavs were in many instances ready fully in line with the British desire to increase to accept that while our analysis of problems exchanges with East European countries in all differed our aims were not dissimilar. The dis- ways which are accepted by both sides as being cussions with the Czechs naturally showed less in the common interest. But we need to take common ground but the Czech interestin bilateral account of the Eastern European countries' exchanges, particularly in the technological sensitivity about any move to expand contacts at field, was encouraging. what they (or possibly the Soviet Union) would regard as too fast a pace. We know that Mr. In Yugoslavia, Mr. Stewart suggested that Smithers has this need well in mind. We have with regard to Vietnam President Johnson's been interested to learn of the approaches Mr. recent speech provided an opportunity to get dis- Smithers has mentioned, and hope he will keep cussions started, and pointed out that this was the Permanent Representatives in touch with in accord with the appeal of the non-aligned future developments. countries for a meeting without pre-conditions. The Yugoslavs were more critical of American My colleagues will, I am sure, also wish me policy but, despite our differing interpretations, to give them some account of my Foreign Secret- we agreed that international talks on Vietnam ary's visits to Yugoslavia and Czechoslovakia. should be held as soon as possible, possibly in Both these visits were made at the invitation of connection with a Cambodian conference. the respective Ministers for Foreign Affairs and represent a further stage in our response to the On the United Nations we agreed with the wish of the Eastern European countries for closer Yugoslavs on the need to restore the organisa- contact. Mr. Stewart's visits to Yugoslavia and tion's solvency and strengthen it so that peace- Czechoslovakia were intended as a stage for- keeping operations could continue. ward in the policy of developing closer links with the countries of Eastern Europe, which has been On disarmament the Yugoslavs agreed that approved not only by this Committee of Ministers our fundamental interests were the same. They but by other international organisations of the supported our view that non-dissemination and West. No British Foreign Secretary had been to the extension of the Test Ban Treaty should be Belgrade since 1957 : no British Foreign Secret- given priority. ary, so far as I can find out, had ever paid an official visit to Czechoslovakia. The talks en- In Czechoslovakia, the Czechs argued on abled him to explain Her Majesty's Government's Vietnam on the familiar lines that United States point of view on the current international issues. aggression was responsible for the present situ- ation and that President Johnson's statement The objectives of the visits of course took did not represent a genuine desire for a peace account of the differing attitudes and policies of settlement. Mr. Stewart firmly rebutted these the two countries. In Yugoslavia, apart from bi- views, pointing out that the present situation lateral questions, our aim was where possible to had been primarily caused by North Vietnamese enlist Yugoslav support for the Western point of infiltration, and he urged the need for a confer- ence.

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The Czechs were mainly preoccupied with countries. Mr. Klaus and Mr. Kreisky have been the Munich Agreement. As expected, they urged to Belgrade. The visit was planned a long time that we should declare that we regard the Munich ago and its main object was to strengthen our Agreement as null and void ab initio. In reply relations, our links with that neighbour country, Mr. Stewart stated Her Majesty's Government's but in addition it has strengthened our bonds views as follows : with the peoples of that Federal Republic which borders us on the south. We wished to strengthen (a) The Munich Agreement was dead and had our relations with these peoples, with whom we been for many years. are united not only by a frontier but by a long common history. (b) The historical fact that the Agreement had been made could not justify any future claims The Chancellor, Mr. Klaus, has been able to against Czechoslovakia. express himself in Serbo-Croat several times. He has spoken on television thus using modern (c) When the time came for final determination means of communication to address the popula- of Germany's frontiers by a peace treaty the dis- tion of the Yugoslav Republic directly, and I cussions would start from the proposition that think that these talks to the people by the Chan- Czechoslovakia's frontiers were not a matter in cellor of a neighbouring country have been a question. success.

(d) The German Government themselves had On all these visits, the quality of our good- clearly stated that they had no claim at all to neighbourly relations has been stressed. But the any Czech territory. structure of society and of the economy in those countries is clearly different from ours. However, (e) The Czechs were not completely satisfied at this moment things are becoming more flexible. with this statement, but welcomed it as far as it But anyone who imagines that this is being re- went. flected in the ideology of the Communist coun- tries would be mistaken ; this would be to dis- Finally, I should like to say that Mr. Stewart play an over-optimistic frame of mind. was struck by the interest both of the Yugoslavs and of the Czechs in further technical exchanges To summarise briefly, the visit to Yugoslavia and co-operation. I am sure that the opportunities has had the effect, in Yugoslavia itself and in presented by this interest should not be lost. all the countries joined together in the heart of In this connection we are glad that the Czecho- Europe, of strengthening our links with that slovak Deputy Prime Minister and Chairman of country, our southern neighbour, and this has their State Planning Commission is to come to taken place in a very friendly spirit. Britain this summer. About a month ago the Foreign Minister for THE CHAIRMAN. - I thank the representative Hungary came to Vienna, returning the visit we of the United Kingdom. paid to him early in November.

Gentlemen, the discussion continues. The Our object in our relations with Hungary and representative of Austria wishes to speak. in our foreign policy in general, is to achieve a gradual improvement of relations between two Mr. BOBLETER (Austria) (Interpretation). - neighbouring countries whose political systems Mr. Chairman, it is very difficult for me to speak and economic and social structures differ. We before this gathering and to say anything really wish to normalise these relations. I think this new, for last December, at our session in Paris, visit has enabled us to take a step forward. Mr. Kreisky made a very full statement. In the interval, Mr. Klaus, our Chancellor, has visited We have been able to conclude certain agree- Strasbourg for the Session of the Consultative ments, as part of our normalisation of relations, Assembly, which he addressed. Since then and lay the foundations for an agreement which Austria has paid visits to two neighbouring

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would not only have political value - I do not the countries of Eastern Europe are good. The wish to exaggerate - but would also be of great subject was discussed at length. I spoke then importance to our frontier populations in the and have nothing substantial to add ; I therefore eastern part of Austria. do not wish to prolong the discussion. I should simply like to say that the contributions of the Another agreement concerns visas for diplo- representatives of Great Britain and Austria have matic passports, but does not thereby abolish been heard with the greatest interest. I think visas for all Austrian citizens. This agreement, this exchange of ideas within the Committee of too, has been made as part of this normalisation Ministers of the Council of Europe on the rela- process. tions of our member countries with the East European countries is extremely useful. I should Another element in our talks - which I would therefore like to propose continuation of the dis- stress have been very frank, with our neighbours cussion. both in Budapest and in Belgrade - has been the matter of co-operation on the Danube Commission. I was of course greatly interested by what In mentioning this Commission, I must repeat the Secretary General said on the subject of here in this gathering what I said last Friday to technical contacts between the Council of Europe EEC at Geneva : Austria would welcome the and the various countries in Eastern Europe. I accession of the Federal Republic of Germany to think the line followed by the Secretariat on this the Danube Commission thus closing the circle point is the right one and my Government wel- of Danubian riparian countries. comes the establishment of such contacts. Naturally my Government thinks that we should Those, I think, are the most important feat- proceed circumspectly, as indeed has been ures of our visits to Belgrade and Budapest. stressed by the Secretary General and other re- They bear witness to great progress. The next presentatives. visit which Mr. Kreisky and I propose will be to Bulgaria in July. THE CHAIRMAN. - Thank you. I call on the representative of Greece. Thus, when we speak of Eastern countries we do not mean only those with which we have a Mr. PAPPAS (Greece). - Mr. Chairman, I, too, common frontier, but all the States to which we have followed with particular interest the state- are closely linked by the history of the last few ments by the representatives of Great Britain and centuries, that is to say, all the countries of Austria. I was happy to hear that the representa- Eastern Europe. tive of the Federal Republic of Germany associ- ated himself with their views and in particular Lastly, Mr. Chairman, an observation with appreciated the efforts made by those States and regard to Albania. In recent times the desire has within your Council. For my part I should like also been expressed for an increase of trade be- very briefly to recall and confirm that in this tween Albania and Austria in so far as this is connection we, too, have done everything poss- possible, which is obviously to a limited extent. ible for a peaceful and constructive future in our relations with our neighbours. We have succeeded THE CHAIRMAN. - I think we may conclude in eliminating disputes, which I may perhaps be from this statement that Austria, on account of permitted to call historic, with the Bulgarians. We her history and her geographical position, is able have again restored very cordial relations with to play a special part in this process, which re- Yugoslavia. We are on the point of eliminating quires so much patience. The discussion con- differences, which I admit are minor ones, with tinues and I call on Mr. Carstens. Rumania, and in general we are doing our utmost to continue to work in a peaceful spirit within Mr. CARSTENS (Federal Republic of Germany) our geographical context. I hope that in the future (Interpretation). - Mr. Chairman, it was said at we shall receive from your Council the same sup- Paris last December that relations between the port as in the past. member countries of the Council of Europe and

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THE CHAIRMAN. - Thank you. Does anyone report to us. I call on the representative of else wish to speak ? France to give us a report on the activities of the European Economic Community. I call on the representative of Italy. Mr. BONFILS (France). - What I have to say Mr. FANFANI (Italy) (Interpretation). - Mr. fits exactly into the context you have indicated. Chairman, on the Italian side, too, we are follow- Its object is to describe very briefly the progress ing with interest and sympathy the current evolu- made within the European Economic Community tion in Eastern Europe towards increasing auton- since the last meeting of the Committee of Minis- omy and national differentiation. Naturally, such ters. The implementation of the Common Market, a trend must be viewed in a long-term perspective, as provided in the Rome Treaty, has continued, and we must acknowledge that for the moment it first and foremost in the agricultural field. When is bound by definite limits due to the ideological, the Committee of Ministers met in December 1964 economic and military inter-dependence of all the this sector, which is an essential one since pro- countries of Communist Europe. However, it gress in it must balance that already made in should be fostered by very specific and well- customs disarmament within the Community and considered political discussion, and even more in the setting up of the common customs tariff, by the development of cultural, economic and was on the point of showing results and indeed, trade relations. We on our part confirm our con- thanks to the co-operative attitude of all parties fidence in the exemplary force of the ideas that concerned, an agreement was, as you know, inspire our way of life. The kind of relations reached on 15th December last. The importance that we wish to see - cultural, economic and com- of this agreement should be emphasised again, mercial - represents the best means of promoting since as from 1967, throughout the territory of the evolution desired, without, however, trying to the European Economic Community, there will be force it. In this context and within these limits a vast free cereals market and the common market the Council of Europe could play a very useful will have been realised, thanks largely to the part. fixing of a single price for cereals at an appro- priate level. Thus the common agricultural market But the problem arises of the repercussions is coming into being more quickly than planned, that such action might have on the present prin- since the single market for cereal products is ciples and working instruments of the Council of almost two and a half years ahead of schedule Europe in the specific sectors concerned. We and this acceleration is likely to have an influ- think the problem can be considered for each ence on the single market for other products, such case separately, taking into account any general as beef, dairy produce, fats and milk. conditions that may, in principle, suggest a fa- vourable attitude to requests received from East- But it is not only in the agricultural sphere ern countries for some form of association with that progress has been recorded, since over the our work. past few months we have also pushed on with economic union. Thus on 2nd February, the Coun- THE CHAIRMAN. - Does no one else wish to cil adopted executive regulations under the speak ? Treaty for the authorisation or prohibition of vari- ous categories of agreements and concerted Then we may pass on to item III of the practices. At the same time, and in the same agenda. way, harmonisation of the legislation of member States is continuing ; the work on fiscal matters is well in hand and if all goes well it should III. Political aspects of European economic lead to the adoption of a common system for integration added value tax (taxe à la valeur ajoutée). THE CHAIRMAN. - Gentlemen, it is custom- Lastly, the Community has undertaken, with ary for the representatives of those countries some success, the co-ordination of the anti- which currently hold the chairmanship in the cyclical policies followed by member States, in European economic organisations to open with a order to moderate or halt the inflationary trends that appeared at the beginning of 1964.

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Thus - and this is the first point I wished to There are three factors that might have led it explain in some detail - the Community has con- to lengthen the list, or at least have exercised a tinued with success to build itself up, in accord- restraining influence on any possible limitation ance with the Treaty, thanks to the political will of the exceptions : that is shared by its Members. But it is well understood that their object is in no way to estab- - First, it has been established that the pro- lish a self-contained group. On the contrary, they tection enjoyed by industry in the Community as consider that this increased cohesion is bound to a result of the common customs tariff is on a open up the countries of the European Economic moderate average level by comparison with the Community more widely to the outside world and level of the other major partners in the negotia- thus enable them to lend a hand in strengthening tions, particularly the United States. The signifi- the bonds between all the nations of the free cance of the modest list of exceptions must there- world, particularly those with the other European fore be considered in the light of this factor. countries. - Secondly, as you know, the Community's With this in view, the Community has con- trade balance has steadily worsened in recent tinued during this period to develop its relations years in spite of the global increase in exports. with numerous countries in Europe. In 1963-64 this was reflected in a deficit of some 3,000 million dollars and it is obvious that the As you know, Greece has been an Associate preservation of a healthy balance of trade must Member for more than two years, and her economy be a major pre-occupation not only of the coun- appears to have benefited appreciably from the tries of the Community but for all its partners, arrangements, since in 1964 her exports to the and it is to be hoped that this will be borne in countries of the European Economic Community mind. increased by 25%, and the Community had lent her 33,000,000 dollars to assist her in carrying - The third moderating element is that, in out a certain number of investments in infra- view of the effort made, which is relatively structural equipment. recent, the Community's economic structure is in full evolution. On the one hand not all its indus- You will also be aware that the association trial firms are large enough to operate in a large agreement with Turkey came into force on 1st market. They have not yet at their disposal an December 1964 ; this was noted at the last meet- adequate capital market enabling them to compete. ing of the Committee of Ministers. Lastly, the economies of the Community's Mem- bers, while aiming at complete integration, are Progress has also been made in preparing still often in a state of juxtaposition. agreements with other outside countries, and we hope that some results will be achieved in the Thus, in drawing up this moderate list of ex- coming months. ceptions, the Community has shown some degree of restraint. It has wagered on its future progress, However, it is certain that the Community, in feeling that the greater its cohesion the more opening its windows upon outside countries, liberal its policy would be. It naturally intends should not confine, and does not propose to con- to continue to lend a hand in the progressive fine, its action to them. It is fully aware of its abolition of the barriers which still separate the responsibilities for reducing obstacles to inter- countries of Europe more particularly. national trade, especially in Europe, which is why it has taken such a very positive part in the I do not wish to anticipate the future, but I multilateral negotiations at Geneva. think I may say that we desire the success of this opening of the Community's windows upon On 16th November last it tabled a list of the outside world, as it may result from the products which it wished to have excluded, by Geneva negotiations. We hope that, in agricultural way of exception, from the proposed tariff reduct- matters in particular, these negotiations will ions. Despite what may have been alleged to the lead to "a new deal" for international trade in contrary, this was an extremely important and agricultural products. It is this consideration that praiseworthy step. has led the Community to propose an organic plan according to which the means of State inter-

- 113 - Official Report — Thirty-Sixth Session of the Committee of Ministers — 3rd May 1965 - 10 a.m. vention in the production of, and trade in, such cent. Mr. Brown outlined the economic policies products should be a matter for global negotia- which the Government had sought to pursue since tions. This is what has been called the "subsidy it had entered office against a background of figure" method. serious problems. These had been based on a range of fiscal and monetary measures and actions The Community has supplemented this plan by designed to effect structural changes in the eco- fairly detailed suggestions for the regulation of nomy as well as on temporary measures. He re- trade in certain major products by international iterated that the surcharge had been introduced agreements, in order to guarantee fair and remun- as an essentially temporary measure that would erative prices for all producer countries. be abolished at the earliest possible opportunity. In conclusion, the European Economic Com- The Council expressed its satisfaction at the munity has stressed on many occasions that a reduction of the surcharge. It was welcomed as a lowering of customs barriers is not enough so first step towards re-establishing a balance of long as its effect is compromised by commonly interest within EFTA, and as an assurance of the practised measures of a quasi-tariff or non-tariff United Kingdom's intention that the surcharge nature. This is, of course, neither the time nor would indeed be only a temporary measure. It the place to mention all such measures, but all attached importance to the announcement, which the same we should touch on the especial import- had been made in an EFTA forum and after con- ance of eliminating such hindrances, including, sultation with its Members, as a reconfirmation of more particularly, certain methods of customs EFTA solidarity and as a basis on which to build valuation practised in some countries, which are closer co-operation within EFTA. no longer in line with the realities of international trade. It felt that the decision should be also re- garded as a sign of confidence in the fundamental THE CHAIRMAN. - I thank the representative strength of the United Kingdom economy. Follow- of France for that extremely interesting report. ing this meeting, a new atmosphere of confidence has been generated in EFTA, which is of prime Mr. Bock, Austrian Minister of Commerce and importance for the conduct of its whole range of at present Chairman of EFTA, is unfortunately activities. unable to take part in this 36th Session of our Committee. Mr. Haekkerup, Danish Minister for Another positive development in EFTA, Foreign Affairs and Vice-Chairman of EFTA, has which stemmed from the UK's balance-of-payments been good enough to take the trouble to report difficulties, was the decision of the EFTA Coun- himself on the development and progress of cil to establish an economic committee to review EFTA. I call on him to speak. the economic and financial policies of member States and their impact on the economies of mem- Mr. HAEKKERUP (Denmark). - Mr. Chairman, ber countries and on the satisfactory operation of I should like on behalf of my colleagues on the the Free Trade Area. During the last three months, EFTA Ministerial Council to give a brief account the organisation of this committee has been set of recent developments in EFTA. in hand and its first meeting has been called for July. In the Economic Committee, EFTA now has It is not too much to say, I believe, that dur- an instrument for reviewing national policies in ing the past three months EFTA has passed the light of the interests of the Association as a through the most difficult period in its existence - whole, which is a sign of the realisation that in but it has done so, and it has emerged with a new the course of economic integration the need for lease of life. The turning-point in this develop- closer co-operation increases. ment was the EFTA Ministerial Meeting in Geneva in February when Mr. George Brown, I may also draw your attention, Mr. Chairman, First Secretary of State, announced that the to the growing appreciation of the value of EFTA United Kingdom Government was going to reduce in each of the member countries. This has been the temporary import surcharge from 15 to 10 per brought home, in particular, by the recently pub-

- 114 - Official Report — Thirty-Sixth Session of the Committee of Ministers — 3rd May 1965 - 10 a.m. lished figures of intra-EFTA trade for 1964, Gentlemen, in accordance with instructions Trade within EFTA rose last year by between given by the Ministers' Deputies at their 139th 17% - 18%, the largest annual increase since meeting (Doc. CM (65) 62), the Secretariat has EFTA was established in 1959, and bringing the tabled a document on the consequences of the total growth of trade over those five years to more division of Europe into two economic groups. than 75%. I may in passing correct a common mis- apprehension. It has sometimes been suggested I should like first to congratulate and thank that the large increase in intra-EFTA trade was the Secretariat for its very full and careful work. caused by abnormally large imports into the I find the caution shown by the authors of this United Kingdom. This is a quite false impression. study in their conclusions completely justified. Trade among the other Members of EFTA in- Nevertheless, the very definite trend shown by creased by almost 25% in 1964, which was more the 1964 figures towards a slowing down of quickly than their trade with the United Kingdom. trade expansion between the two groups by comparison with trade within each group should The process of economic integration is, of be a warning to us ; we should not allow any course, based on the reduction of tariffs. Al- widening of this rift that is on the point of though there have been no further reductions in opening. EFTA tariffs since 31st December last, on 1st March the Finnish tariff on most industrial The GATT Kennedy Round is one way of pre- goods of EFTA origin was reduced to 30% of the venting this and is one of the items on the agenda. basic duties. Finland, therefore, who became an It was mentioned in the report of the European Associate of EFTA only in 1961, has now achiev- Economic Community presented to us by the rep- ed the same tariff level as other member countries. resentative of France. The general debate is open. The Association is at present carrying out its second annual review of agricultural trade. I call on the representative of the United The general purposes of these reviews are to Kingdom. bring about a sustained growth of intra-EFTA trade in agricultural goods and to prevent disturb- ance of EFTA markets for these goods. The Agri- Mr. PADLEY (United Kingdom). - Mr. Presi- cultural Review Committee has had a thorough dent, the reports of our French and Danish col- exchange of views on what action EFTA coun- leagues - and I congratulate them on the thorough- tries might take to counteract dumped or sub- ness with which they presented the information sidised exports of agricultural products, partic- showing progress in both EEC and EFTA - those ularly eggs, from non-member countries in EFTA reports show that it is necessary to have the markets, and the EFTA Council will shortly con- Council of Europe as a forum in which we can sider those problems. discuss these issues in the widest possible con- text. Finally, Mr. Chairman, I may say that EFTA is at present engaged in a large number of internal There is a danger that we may forget that studies, all more or less concerned with ensuring neither EEC nor EFTA constitute Europe. On the that we are preparing adequately to function as a contrary, both were conceived as means of achiev- full free trade area. EFTA will in fact be arriving ing the integration of Europe on a much wider at that position in little more than a year and a basis. The discussions which we hold in this half. It would not be appropriate for me to com- Committee are an invaluable reminder to us all ment at present on this range of questions, but I not to lose sight of that long-term objective. If mention them to indicate that EFTA is actively the policies of EEC and EFTA are allowed to concerned in making an effective instrument of develop along divergent or conflicting lines, not economic integration. only will the chances of creating a truly inte- grated Europe recede, but there could be the most THE CHAIRMAN. - I thank the representative serious consequences for the Members of the two of Denmark.

- 115 - Official Report — Thirty-Sixth Session of the Committee of Ministers — 3rd May 1965 - 10 a.m. economic groups themselves. It is therefore a with the Scandinavian Prime Ministers on the primary objective of British policy, in the words initiative to seek an EFTA Ministerial Meeting of our Prime Minister in New York on 14th April, in Vienna on 24th and 25th May at Prime Minis- "to prevent the tragic consequences of a further terial level. hardening of the economic division of Europe". And I was glad, Mr. President, to hear you, a few On the economic side, our long-term aim is moments ago, draw attention to the need to the creation of a common European market which achieve further integration. would embrace both EEC and EFTA and to which all the countries of Europe who so wished could Our Secretariat have made a valuable contri- belong. bution to our consideration of this problem with their study of some of the trade effects of divis- We are ready to explore every opportunity ions of Europe. That study affords clear evidence which offers to move in this direction. Provided that the rate of growth of trade within the two this European market were outward-looking, we economic groups has been more rapid than the see no reason why our Commonwealth or other growth of trade between them. Of course the flow connections should prove an obstacle in our path. of trade between countries or trading groups is I am glad, Mr. Chairman, that the Rapporteurs and not the only important factor in the European you emphasised the importance of the Kennedy economic life. Nevertheless, the symptoms of Round of negotiations which we shall be discuss- danger are clearly present. There is a real risk ing later on on our Agenda, because at the pres- that our present economic divisions may soon ent moment it constitutes one of the most promis- begin to distort the pattern of trade and lead to ing means of progress towards this end. But we the mis-allocation of resources in such a way that must also be ready to make use of every form of the efficiency of the European economy could be bilateral arrangement, economic, commercial and threatened and, with it, the welfare of all of us. industrial, to span the division between us. If the direction of economic policy and the Politically, we must recognise that the future structure of commercial life become identified shape of Europe cannot be settled on artificially with group interests, instead of with the interests restricted bases. If the political unity is to have of the European community as a whole, we shall any real meaning, it must entail the harmonisation be confronted with all the dangers of economic of policy. Talks on how this is to be achieved, if nationalism on an inflated scale. Nor are these they are to serve a real purpose, should be open dangers confined to trade. Economic divisions to all European Governments interested in taking inevitably generate political divisions. There is part. Otherwise their effect will be divisive a natural and understandable anxiety that the rather than constructive. pooling of economic and commercial resources should be balanced by parallel measures in the I believe that my Government is ready to go political field. My Government share and under- at least as far as most others in working out com- stand this anxiety, but it would be contrary to the mon lines of policy on a European basis and to- purposes for which the Council of Europe was wards the creation of the right kind of Europe. founded if we were to stand idly by and watch the The kind of integrated Europe which we hope to political fragmentation of Europe on a basis of bring into existence will be indefinitely retarded transient economic advantage. It is because we if Britain is not allowed to make her contribution. are aware of this danger that my Government is determined to do all in its power to bridge the I hope that my speech today and the British economic gap which now exists in Europe. That Prime Minister's initiative at Chequers will have was why, when the Prime Minister and I welcomed dispelled this illusion and will leave no doubt the European Socialist leaders to Chequers a few about the seriousness with which my Government weeks ago, the British Prime Minister agreed regards the present economic divisions within

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Europe or about our determination to help in re- and one of those is the Council of Europe and it moving them. seems to me therefore that it is appropriate and right that here we should discuss the political THE CHAIRMAN. - Thank you. implications resulting from the existence of the European Economic Community, on the one hand, The discussion continues. I call on the rep- and the European Free Trade Area, on the other. resentative of the Netherlands. After hearing the statements made here and by looking through the documents provided, it seems Mr. PHILIPSE (Netherlands). - I would like to me that two facts are of importance : first, that also to congratulate the French delegate and the the commercial and economic exchanges within delegate of Denmark on the reports they have the two groups are developing effectively and presented on the activities of the European Eco- there have been considerable increases in the nomic Community and the European Free Trade course of recent years. It also appears from this Association. that exchanges between the two groups are devel- oping satisfactorily and that these exchanges are I wish also to add my thanks to those which increasing from year to year ; and trade with the have been expressed about the document sub- third countries in Europe which belong to neither mitted by the Secretariat for our discussion. group also tends to increase. Nevertheless, one should not forget certain difficulties which ap- Mr. Chairman, you have just referred to Docu- pear at the present time, and may become even ment CM (65) 62, which has been distributed to us greater in the future, in the dismantling of the as a background paper. My Government has internal barriers to trade. Nevertheless, up to the studied that document and they think it is ex- present, developments have been perhaps more tremely useful as an analysis of the influence of satisfactory than had been hoped, and this is a the existence of both economic groups. It makes point that I think should be brought out in our dis- clear that the concentration of trade within the cussion. two groups is still developing. The document is called "Political Aspects of European Economic With regard to the future, the German Govern- Integration" and actually the political side of ment considers that every means should be em- the problem is hardly touched on in it. Our view ployed to overcome and eliminate as far as poss- is that the desirability of co-operation between ible difficulties which may arise in exchanges the two groups should not be seen as only an between EEC, EFTA, and other European States. economic problem but in the first place as a The French delegate has mentioned a number of political problem. We think it desirable from the agreements concluded by the EEC States with political point of view that there should be co- member States of the Council of Europe and he operation in a larger European field. If such a has mentioned that negotiations concerning simi- co-operation should not be attained Atlantic co- lar agreements are continuing with non-member operation might even be endangered. States of the Council of Europe. This forms one of the ways which will make it possible to over- THE CHAIRMAN. - Thank you. come the difficulties which we mention here. But I think of even greater importance in this connect- I call on Mr. Carstens. ion is the Kennedy Round which has been men- tioned by a number of speakers. I think that the Mr. CARSTENS (Federal Republic of Germany) GATT negotiations aiming at a general reduction (Interpretation). - Mr. Chairman, I would also like in tariffs is a particularly appropriate means to to add my thanks to those already expressed for overcome the difficulties which have been men- the information and documentation provided for us tioned or at least to reduce such difficulties. I by the Secretariat for this discussion. The Ger- understand that this point comes under the next man Government thinks that the unification of item on our agenda and I do not propose therefore Europe in the widest possible context should be to say very much on this at the moment, but it encouraged and we will in future take every does seem to me that there is a very close con- opportunity to achieve progress in this direction. nection with the item we are now discussing. There are certain organisations which bring to- gether all or nearly all the States of free Europe, To sum up I would like to say that I feel that

- 117 - Official Report — Thirty-Sixth Session of the Committee of Ministers — 3rd May 1965 - 10 a.m. the aim, which is the unification of all European eliminating the differences that still exist be- States, should be clearly borne in mind and we tween the two groups and on the procedure to be should make every effort in our power to achieve followed to achieve this end. this aim, and that in the meantime we should make every effort to overcome as far as possible THE CHAIRMAN. - Thank you. the difficulties caused by the present grouping of States in Europe and to reduce the difficulties I call on the representative of Austria. resulting therefrom. We hope that all Members of the Council of Europe will make successful Mr. BOBLETER (Austria) (Interpretation). - efforts in this direction and I hope if the GATT Mr. Chairman, as an Austrian living in the heart negotiations are successful these difficulties of Europe and closely concerned with its econo- will be thereby very considerably further dimin- mic exchanges, I should like first of all to thank ished. you, and particularly to thank the Secretary Gener- al for the documentation he has prepared for us, THE CHAIRMAN. - I thank the representative which represents an extremely valuable basis for of the Federal Republic of Germany. our discussion.

The discussion continues and I call on the I have listened with great interest to the representative of Italy. speakers preceding me and have been happy to note that the desire for an extension of European Mr. FANFANI (Italy) (Interpretation). - For economic exchanges has been expressed on all years the Italian Government has been following sides. a policy favouring liberalisation of international trade. This policy may derive additional value Austria is closely linked to EEC through her from its economic and political repercussions trade. 50% of her exports go to that grouping. Our within Western Europe. We are therefore very participation in EFTA has also brought us very interested in any initiative taken to prevent the great advantages, our exports to the member gap between EEC and EFTA from widening or countries of that Association having increased becoming more marked. It is on this point that I considerably over the last few years. In this wish to speak. gathering, in which all the countries of Europe - those of EFTA and those of EEC - are represent- Our intention is to encourage the process of ed, I should like to say a few words on our partic- unification in Europe. It is for this reason that ular situation, which is also relevant to the dis- we think it desirable to try to establish some cussion of this item of the agenda. kind of parallelism between the processes of integration within each of the two groups, EEC, I will just read out a short passage from the on the one hand, and EFTA, on the other. declaration made by the Austrian Government to EEC on 28th July 1962. We then stated : There has been no lack of initiatives in this direction. Mr. Smithers, the Secretary General, "Austria does not wish to participate only has been one of the promoters of a move to close because its economic life is closely linked with the gap between the two groups by giving the that of the member countries of EEC, but also be- Council of Europe a specific function in this cause for centuries Austria has had a European matter. duty to perform. It has fulfilled that task in the political and in the cultural sphere. It also has a I am happy to be able to tell you that at Rome duty towards the countries of Eastern and South during the past few days, during the talks be- Eastern Europe. It is therefore incumbent upon us tween Mr. Wilson and Mr. Moro, the British and to safeguard and uphold our neutrality, to meet Italian Prime Ministers, a conve?gence of views our international obligations. Thus this attempt between Italy and Great Britain has been noted to reach an agreement governing our economic on the desirability of solving this problem of relations with EEC is not an isolated move but a

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step of very great importance. We are pioneers in Let me now return, just for a moment, to item this sphere because of our central situation at the 1 of the agenda, to say that a larger Europe, a heart of Europe." wider economic market and European integration will not come about simply by adding EEC and May I now revert very briefly to the visit we EFTA together. In our view we must also give paid to Yugoslavia, in order to say that our very long-term thought to Eastern and South-Eastern frank exchanges of views showed that our Yugo- Europe, not in the context of the policy for the slav partners, too, have definite opinions about immediate present but in the perspective of the EEC. During our talks at Belgrade they told us years to come, for Europe does not end at our that Yugoslavia exported a large part of its in- frontiers. Our frontier with Hungary is Laita ; the dustrial and agricultural products to the six EEC Bohemian Forest does not stop at the Bayerischer countries. They have therefore concluded that it Wald. might be necessary for them to come to an ar- rangement with EEC in order not to endanger their In closing my remarks, and speaking as an European markets within the Community. Austrian, I should therefore like to say that I am very happy that the Secretary General and his From the political point of view one interest- collaborators have submitted to us this extremely ing factor should be noted : the Yugoslavs told valuable documentation. I am also very pleased us that they had no objection to Austria's appli- that the speakers before me have stressed so cation for accession to or participation in EEC, positively the need for this European integration. whereas other countries in Eastern Europe have expressed criticism on this point. THE CHAIRMAN. - Thank you, Mr. Bobleter. On 2nd February, the Council of Ministers ex- amined this application at Brussels, and on 2nd I call on the representative of Denmark. May, under the chairmanship of the Foreign Minis- ter of France, Mr. Couve de Murville, (whom we Mr. HAEKKERUP (Denmark). - Mr. Chairman, shall shortly welcome in Vienna), representing I would like to make one further remark on behalf one of the member countries of EEC, the Council of my Government concerning this problem. I decided to instruct the Commission to examine associate myself with what my British colleague the application. This fact in itself - at least this says and I should also like to congratulate the is how we see it in Vienna - represents a con- Secretary General for the report which was highly siderable step forward. interesting.

It is evident that these instructions given to But I think it should be remembered that the the Commission form a unilateral starting point. report is only dealing with overall figures. There The negotiations already opened will reveal the is no division of the trade figures of the various possible form and content for an agreement be- groups of commodities. I am pretty sure that if we tween Austria and EEC. divide the figures only into two groups, industrial goods and agricultural goods, you will find a At any event there is the following very im- completely different development in the shape of portant factor : the preamble mentions Austrian the two groups. neutrality. I do not wish to dwell on the question but simply to stress again that this path which I think Denmark is a great exporter of agri- Austria has taken must be considered in the cultural products in Europe. We have experienced general context of our European policy. As a decrease of 5% of our overall agricultural ex- pointed out by several Representatives before ports to the Common Market, and if we take the me, out object is to create a wider European commodities where the regulations inside the market.

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Common Market have been involved, since 1962 We think as he does, that the best means of there has been a decrease of our exports of 40%. achieving this result is, on the one hand bilateral If we take the new regulations which were put in negotiations and, on the other, the ground covered force on 1st November, already since then the by the GATT negotiations on the Kennedy Round decrease has been of between 15 and 20 percent at Geneva. of our exports. But the United Kingdom Minister of State for So I am pretty sure that a split-up of the Foreign Affairs has just told us that a move of figures would give us a clearer picture of what some importance seems to be on the point of being the division means, especially for countries that taken, or is, at least, in the air, and naturally I have a substantial agricultural export. need not say that my country will examine any proposals that may be made with great care and I only want to make that remark because I interest. think it is essential that we realise the picture as it really is. I don't know whether this conse- THE CHAIRMAN. - Thank you. quence, as far as agricultural exports are con- cerned, is really necessary. We have always in Does anyone else wish to speak ? I call on my country accepted, when we applied for mem- the Secretary General. bership in the Common Market, the principles and regulations which the Common Market would intro- Mr. Peter SMITHERS (Secretary General). - duce as far as agriculture is concerned. But we Sir, it is merely to offer my thanks, if I may, for have also said that the implementation, as far as the extremely complimentary things that have we see it, is too protectionist and by that results been said about the document produced by Mr. in a very substantial increase of the domestic Renborg and his staff. This, naturally, is a great production of agricultural products, which cuts encouragement to the Secretariat, and I hope it down the traditional channels of trade. makes the point clear that we have in our Secret- ariat here some extremely able brains which Gov- I only wanted to make that remark; I think a ernments, we hope, will make full use of. split-up of the figures would give a clearer picture of the actual effect of the division of Europe into THE CHAIRMAN. - Gentlemen, I would not two groupings. Thank you, Mr. Chairman. wish to omit to note, with great pleasure, the good will on the part of the delegations of all THE CHAIRMAN. - I thank the representative countries in trying to find solutions to the seri- of Denmark. ous problems which occupy us. We know of course that in international life there is sometimes a Do any other delegations wish to speak on long road between good will and achievement. But this subject ? The representative of France. at all events good will is the sine qua non for any results. Mr. BONFILS (France). - Mr. Chairman, my remarks will be brief for I do not wish to prolong We can now pass to the following item on the this discussion. agenda, "GATT tariff negotiations". These have already been mentioned many times. What I wanted to say, on behalf of my country, is that we are naturally most anxious that trade liberalisation should continue since, as the rep- IV. GATT tariff negotiations resentative of the Federal Republic of Germany has pointed out, this has made it possible to THE CHAIRMAN. - If no one wishes to speak record a very marked double increase in trade - for the moment may I make a brief statement as both between the two groups and within them. head of the Swiss Delegation. My Government attaches great importance to this problem.

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In all our countries we have flourishing in- have made to reduce exceptions to a strict mini- dustries. They are trying to extend the markets mum. for their products beyond their own frontiers. We, As the Secretariat memorandum I have men- as Governments, encourage these trends, knowing that dynamic expansion is the foundation of the tioned rightly points out, a general lowering of prosperity of our nations. The American initiative trade barriers may substantially mitigate the to bring about a substantial reduction in obstacles harmful consequences of the present division in Western Europe. This aspect of the Kennedy to trade is thus a far-sighted one in accordance Round has fortunately been acknowledged by the with the spirit of our age. participants, and the products on which intra- As a result of this initiative the Gatt Tariff European trade is principally based are therefore Conference - known as the Kennedy Round - was receiving particular attention in the current talks. officially opened exactly a year ago. Since then the Council of Europe - both the Consultative A realisation of the particular importance of Assembly and the Committee of Ministers - has the Kennedy Round for the European countries continually shown keen interest in these negotia- cannot fail to satisfy the other partners in the tions. It is natural for that interest to increase negotiations, thanks to the most-favoured-nation further as the work at Geneva gathers momentum rule. Any progress made, even among a restricted and offers prospects of practical results. Only number of participants, is progress for the Ken- very recently the Secretariat prepared a memoran- nedy Round as a whole. Moreover the prospect of dum on the GATT trade negotiations which was favourable results at European level is an excel- distributed to the Ministers' Deputies with a lent negotiating instrument to induce our non- view to the preparation of our discussion today. European partners to widen their offers. A certain I should like to thank the Secretariat for its very degree of solidarity among the European partici- interesting statement which on many counts pants will thus not only benefit Europe's particu- deserves our close study. lar interests ; it is one of the conditions of a final result satisfactory to all the member coun- In spite of the difficulties and delays, which tries of GATT. Conversely, the United States were after all to be expected, it appears that for will be acting in its own interests if it first re- a few weeks past a process of acceleration has duces those of its tariffs - and they are unfortun- been apparent and we may say without exaggera- ately numerous - which are still at a very high tion that the true negotiations are now in progress. level. These negotiations are of interest first of all Gentlemen, I feel assured that European Gov- to those countries which have declared them- ernments are fully aware of these considerations, selves willing to accept an across-the-board re- and the instructions they give to their negotiators duction in tariffs ; apart from the United States may be expected to reflect that state of mind. and Japan, these are European countries. While we look for a substantial effort on the part of our Mr. PADLEY (United Kingdom). - Mr. Presi- American and Japanese friends, our own attitude dent, I very much welcome the introduction you will largely determine the final success of the have given to this subject, because the British negotiations. This fact should strengthen our Government continues to regard the Kennedy resolve - indeed our enthusiasm - to achieve the Round as of the utmost importance. It should not greatest possible results. only lead to a wide-spread exparsion of inter- national trade as a whole, but in particular, a No one could deny that the lists of exceptions successful outcome would do a great deal to presented on 16th November last by five of the lessen the division of Europe into two economic ten countries which proposed to reduce their groupings. I am particularly glad that, for the customs tariffs by the across-the-board method first time in any GATT tariff-cutting negotiations, seemed a lengthy one. But we are bound to recog- consideration will be given to agriculture, non- nise the sincere effort that the five countries tariff barriers and the active participation of the less developed countries. As a token of my Gov-

- 121 - Official Report — Thirty-Sixth Session of the Committee of Ministers — 3rd May 1965 - 10 a.m. ernment's intentions, I would point to the short- attitude adopted at Geneva, in the GATT negotia- ness of our industrial exceptions list which was tions, and I would like, Mr. Chairman, to associ- easily the shortest of the lists tabled in Geneva ate myself with what was said by yourself and by last November. the delegate for the United Kingdom. It is our view that in the matter of these negotiations, It is good to see that the complicated indus- both in Geneva and outside of Geneva, economic trial negotiations are making steady progress. We and political factors must be borne in mind. The intend to play a constructive part in the agri- discussion on the preceding agenda item already cultural side of the negotiations to which the went to show that a happy conclusion of the Secretary General's paper rightly gives emphasis GATT negotiations would make it possible to and, in particular, in the discussions on cereals overcome many difficulties that are tied up with which we hope will begin at the GATT Cereals the development of the two economic groupings. Group on the 17th May. But I believe that, in addition to this, a success- ful outcome of these negotiations can also have As you know, it was originally intended that some favourable political effects to the extent participating countries should table their cereals that political aims, such as those laid down in the offers on 26th April but in the event of EEC's context of this conference, can be achieved. being unable to do so, we sincerely hope that EEC will be able to table their offer before the Conversely, we hope that political consider- meeting of the GATT Cereals Group. ations will help us to overcome the delicate technical problems, and that a political will to The liberal attitude of the British Government achieve results will be instrumental to achieving towards cereal imports has already been shown success in our efforts. Within this very wide in our bilateral cereal arrangements with our forum we hope we will be able to achieve suc- main suppliers, in which we have given assur- cess and this is why we very warmly welcome ances for maintaining the share of imports in our these GATT tariff negotiations that will enable cereal markets. Subject to the overriding require- a greater degree of liberalisation of trade to be ment of reciprocity, our offers in the agricultural brought about within Europe. We also welcome centres as a whole, which we expect to table in these negotiations in Geneva because, as we see September, will be designed to afford the great- it, they will also enable us to intensify trade be- est measure of success to the entire Kennedy tween Europe and the North American countries. Round negotiations ; a success, you will all And finally, we welcome them because - as we agree, which we should further most vigorously. see it, again - these negotiations will be benefi- cial to a considerable extent to developing coun- I am also glad to see that attention was tries. drawn, in the Secretariat's paper, to the import- Thus, these Geneva negotiations will enable ance of the Kennedy Round, both for trade with us to bring about an international distribution of Eastern Europe and for trade with less developed labour, of the tasks that we must undertake and countries. This is not merely an opportunity for the result will be also to improve productivity developed countries to break down barriers to and to improve the position, generally, in all the trade amongst themselves; we have here a chance countries of the world. These Geneva negotiations of spreading the benefits of liberalisation - both economic and political - still more widely. have shown that very great efforts are required on the part of all participants in order to achieve THE CHAIRMAN. - Thank you. the aims that have been set. This objective is very ambitious : a 50% tariff cut. And this ex- I now call on the delegate of the Federal ceeds by far what other, preceding GATT nego- Republic of Germany. tiations set as the aim to be achieved. We quite agree with what you yourself, Mr. Chairman, said, when you referred to the fact that last month's Mr. CARSTENS (Federal Republic of Germany) (Interpretation). - Mr. Chairman, my delegation negotiations were proceeding favourably and that also welcomes with great satisfaction the positive they were a prerequisite and that a political will

- 122 - Official Report — Thirty-Sixth Session of the Committee of Ministers — 3rd May 1965 - 10 a.m. on the part of all participants was necessary for Mr. PHILIPSE (Netherlands). - Mr. Chairman, the successful outcome of these negotiations. on 27th April, the Netherlands Prime Minister of That is the political will to succeed and bring the newly formed cabinet stressed once more the about a favourable result and also to make sacri- importance of the Kennedy Round becoming a fices and concessions and compromises. success. He said - freely translated: In the future, too, all the participants, all the "The furtherance of a unanimous policy of partners in this negotiation must fully take part the West - supported by a strong system of de- in all these measures in order to achieve further fence in the framework of the Atlantic Alliance success and, may I repeat it once more, we hope and also the unification of Europe and the further that these negotiations will be fully successful. enlargement of the European Communities - will remain the corner stones of Netherlands foreign THE CHAIRMAN. - I thank the representative policy. of the Federal Republic of Germany. In this respect, the Netherlands Government I call on the representative of Sweden. attaches great value to the success of the Ken- nedy Round as an attempt to arrive - in an Atlan- Mr. LINDH (Sweden). - I wish to take this tic context - at an important reduction of import opportunity, Mr. Chairman, of stressing briefly duties and at an activation of world trade." but strongly the very great importance which the Swedish Government attaches to the success of From recent American statements, in the first the multilateral GATT tariff negotiations : the so- place a statement from President Johnson, it is called Kennedy Round. quite clear that the United States of America also continue to attach great value to the success of The Swedish Government looks upon the prob- the Kennedy Round. lem in a way very similar to that of the Swiss and of the other EFTA Governments, and I can, to a The Netherlands Government therefore can very large extent, associate myself with what you agree with the contents of Document CM (65) 52 have just said, Mr. Chairman, in the capacity of prepared by the Secretariat and also with the As- leader of the Swiss delegation to this Committee. sembly's Recommendation 410. The Swedish Government has started the negotia- tions without claiming any exceptions from the We think it is of the highest importance that linear tariff cuts to be applied generally. It will the negotiations will be continued with great continue to contribute to the best of its ability speed. There have been fairly long delays and and on the basis of reciprocity to the achievement further delays might give rise to resistance. of a substantial tariff cut in the context of the Kennedy Round. As far as agriculture is concerned, the agree- ment reached on 15th December 1964 in the Coun- One of the main preoccupations and motives cil of EEC on agricultural policy and in particular, of the Swedish Government in this connection is, on the prices of cereals, offers an opportunity to of course, the European aspect of these negotia- get down to concrete negotiations. tions and the need, in the absence of a single integrated European market, to take every oppor- Now it is time to make concrete offers from tunity of mitigating the regrettable divisions which it is made clear - translated into figures - which have been discussed under the previous what commitments can be accepted and what item on the agenda of this Committee today. "access to world markets" can be put into effect.

THE CHAIRMAN. - Thank you. As far as industrial products are concerned, the rule of a 50% tariff cut should stay. In the I now call on the representative of the Nether- near future the lists of exceptions should be lands. tuned to each other in a balanced way, so that the exceptions remain within reasonable limits. Also, agreement should be reached about the so-

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called disparities, in such a way that the depart- THE CHAIRMAN. - Does anyone else wish to ure from the 50% rule does not lead to chain re- speak on this subject ? . . . Apparently not. I actions, whereby the exception becomes the rule think we still have time to go on to the next item on the agenda. Now is the time that the bilateral discussions in the industrial sphere between EEC and a num- ber of European countries on these subjects V. Atlantic partnership should prove their use. THE CHAIRMAN. - I call on the Secretary We think it is important that in this way spec- General. ial attention should be given to the inter-Euro- pean traffic. However, no one should be tempted Mr. Peter SMITHERS (Secretary General). - to think that the European problem can be solved Sir, I don't think there is anything of substance by non-discriminatory tariff cuts on goods that to report on this matter. But the Committee will are important specifically for European trade. be aware that a party of Congressmen and Sena- tors is arriving in Strasbourg tonight for a visit A real European solution has - as always -to to the Council of Europe. I think the list is in be found by accession to, or if a country is not your folders. yet prepared for that, by association with the European Communities. Perhaps I might just make a personal observ- ation, as to my own view on the utility of these THE CHAIRMAN. - Thank you. visits : having myself been a delegate in the Assembly for a period of years, I found its educa- I call on the representative of Austria. tive value very great. Anything that I knew about Europe for many years was learnt there. Mr. BOBLETER (Austria) (Interpretation). - Mr. Chairman, I should like to take this opportun- A previous visit by Mr. Wayne Hayes last ity to thank you for your introduction to the de- year to the Council of Europe certainly showed bate. that both he and ourselves derived a very great deal of benefit on the Assembly front from the I will be very brief and simply say that on exchanges that took place, not merely the ex- the Austrian side there is a desire and a hope changes in public but still more the exchanges that these negotiations will very soon have a in private. successful outcome. I think the Kennedy Round negotiations should be viewed not only from the As the United States have a system of divi- point of view of across-the-board reductions but sion of powers - executive and legislative - one also from other very important angles. They must therefore attach importance to the opinion should also be considered in the light of develop- of the legislature, and it seems to me that one ments in the United States, and I think that our of the most valuable products of visits of this aim at European level should be not merely to sort is that the Americans, coming to this strict- deal with the question of the customs tariffs but ly European Assembly, have an opportunity to also to overcome very serious obstacles in the learn a great deal about the political thinking United States, in the form of taxes as well as in current in Europe and about the way in which we other forms, which hinder the development of our go about our tasks ; particularly to meet those trade. countries which they would not normally meet in NATO circles. Therefore it does seem to be of On the Austrian side we shall try with our some value in the background of the wider modest means to make a contribution to these question of Atlantic partnership, and I dare say Kennedy Round negotiations. Austrian exports go mainly to Europe and we therefore hope that this that our own parliamentarians will also benefit from this visit. European economic union will be able to make progress. I cannot think of any developments other- wise, except that, in the spirit of Atlantic part-

- 124 - Official Report — Thirty-Sixth Session of the Committee of Ministers — 3rd May 1965 - 10 a.m. nership, the United States recently applied and useful if you gave a brief outline of the pro- was accepted to join the Wines and Spirits Com- gramme that is to follow. mittee of the Council of Europe. Unfortunately, this Committee has come to a halt at the moment Mr. Peter SMITHERS (Secretary General). - so I don't think this matter can be considered The flag raising ceremony will take place in as of very great significance. front of the Council at a quarter to one. It is a simple ceremony and we are all looking forward THE CHAIRMAN. - Do these remarks call to it with great pleasure and we have done our for any discussion ? It appears not. I think, best to arrange that it should not rain at the Gentlemen, that it would be preferable to adjourn appropriate moment. Apart from that I have no the proceedings now. The parliamentarians are other announcements. here for the ceremony to honour the Maltese delegation. We shall resume later and perhaps THE CHAIRMAN. - The Session is suspend- in the meantime you will consider the poss- ed ; we shall meet again at 3 p.m. ibility of making contacts with your Members of Parliament. Mr. Secretary General, it might be The meeting was suspended at 12.20 p.m.

- 125 - THIRTY - SIXTH SESSION OF THE COMMITTEE OF MINISTERS

OFFICIAL REPORT

of the meeting held at 3 p.m. in Strasbourg on 3rd May 1965

Present : NETHERLANDS Mr. W.J.D. PHILIPSE 1 NORWAY Mr. BOYESEN 2 AUSTRIA Mr. C. BOBLETER 1 SWEDEN Mr. S. LINDH 3 BELGIUM Mr. L. COUVREUR 2 SWITZERLAND Mr. F.T. WAHLEN, Chairman CYPRUS Mr. A. ARAOUZOS 3 TURKEY Mr. H.E. ISIK DENMARK Mr. P. HAEKKERUP UNITED KINGDOM. Mr. Walter PADLEY 4 FRANCE Mr. C.H. BONFILS 4 FEDERAL Mr. Peter SMITHERS, Secretary General REPUBLIC Mr. P. MODINOS, Deputy Secretary General OF GERMANY Mr. F. PRILL 5 Mr. R. LUC, Political Director GREECE Mr. D. PAPPAS 6 7 Mr. H. LELEU, Secretary of the Committee ICELAND Mr. P. EGGERZ of Ministers IRELAND Mr. B. DURNIN 8 ITALY Mr. A. MARIENI 9 The meeting was resumed at 3.15 p.m. LUXEMBOURG Mr. M. FISCHBACK1 0 MALTA Mr. G. BORG OLIVIER VI. Future inter-governmental work of the 1. State Secretary for Foreign Affairs, replacing Mr. Council of Europe B. Kreisky, Minister for Foreign Affairs. 2. Belgian Permanent Representative to the Council THE CHAIRMAN. - Gentlemen, I will now of Europe, replacing Mr. P.H. Spaak, Minister for call on the Secretary General to introduce item Foreign Affairs. 6 : Future inter-governmental work of the Coun- 3. Minister for Commerce and Industry, replacing Mr. cil of Europe. S. Kyprianou, Minister for Foreign Affairs. 4. French Permanent Representative to the Council Mr. Peter SMITHERS (Secretary General). - of Europe, replacing Mr. M. Couve de Murville, Minis- Mr. Chairman, you will remember that in Decem- ter for Foreign Affairs. ber 1963 this Committee, prompted by Recom- 5. Permanent Representative of the Federal Repub- mendation 376 of the Consultative Assembly, lic of Germany to the Council of Europe, replacing instructed its committees of experts to report Mr. G. Schroeder, Minister for Foreign Affairs. on the possibilities of preparing measures of 6. State Secretary for Foreign Affairs, replacing Mr. harmonisation in social, cultural, legal and ad- S. Costopoulos, Minister for Foreign Affairs. ministrative matters as well as the establish- 7. Icelandic Permanent Representative to the Coun- cil of Europe, replacing Mr. G.I. Gudmundsson, Minis- 1. Netherlands Permanent Representative to the ter for Foreign Affairs. Council of Europe, replacing Mr. J.M.A.H. Luns, 8. Irish Permanent Representative to the Council of Minister for Foreign Affairs. Europe, replacing Mr. F. Aiken, Minister of External 2. Under-Secretary of State for Foreign Affairs, re- Affairs. placing Mr. H. Lange, Minister for Foreign Affairs. 9. Italian Permanent Representative to the Council 3. Swedish Permanent Representative to the Council of Europe, replacing Mr. Fanfani, Minister for Foreign of Europe, replacing Mr. T. Nilsson, Minister for Affairs. Foreign Affairs. 10. Deputy Minister for Foreign Affairs, replacing Mr. 4. Minister of State for Foreign Affairs, replacing W. Werner, Prime Minister and Minister for Foreign the Rt. Hon. M. Stewart, Secretary of State for Foreign Affairs. Affairs.

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ment of European standards in the various sect- ly, in the local government field of the Council ors. In due course, the experts made their of Europe, a very important matter for the whole suggestions which were carefully examined by of the European movement because the local the Deputies who made a first selection from authorities have access at close range to the them and submitted the results to you in Decem- people throughout our countries, there seemed ber last. You then instructed them to pursue to be much ground for improvement in the basis their work and prepare an order of priority for of co-operation between the various organs con- the subjects selected for inclusion in a pro- cerned, the European Conference of Local gramme of work of the Council of Europe. In Authorities, the Committee of Ministers and the January you announced to the Assembly : Consultative Assembly itself. Our investigation into this field is being carried out within the "The establishment, perhaps in the course Secretariat and has already made substantial of this year, of a precise programme of priori- progress, and we have already, I think, managed ties which will have considerable importance in to devise some improved procedures. However, the first place for our Council but also for Euro- the more general problem within the work pro- pean unification in general". gramme of the Council was to attempt to estab- lish priorities and, as the year proceeded, it be- However, it became apparent during the came evident that it was extremely difficult for course of our work that the Deputies would have Governments themselves through their own difficulties in carrying out their task unless the mechanism to establish priorities for lack of the Secretariat had completed a full review of the kind of overall review of our work to which I activities of the Council of Europe. This is the have already referred. Therefore, as the year reason why, pending the completion of the work went on, with the agreement of the Deputies, I of the Secretariat to this end, the Deputies' own was more and more obliged to begin proposing examination was bound to come to a standstill, to them European priorities as seen by the which explains the absence of a second pro- Secretariat for their approval or otherwise. But gress report at this meeting. This is also the when we in the Secretariat came to approach reason why it was felt that today's discussion this task of drawing up priorities for our work should concentrate on the important paper of we came across certain remarkable, I think 29th April about future inter-governmental work striking, deficiencies. First of all, in an organ- of the Council of Europe. ism as complex as the Council of Europe is, with so many different bodies working simul- Perhaps I might ask the indulgence of the taneously, there was no central programming Committee to say a few words addressed general- machinery. This meant that each of our commit- ly to the nature of our work. When I came here tees - and there are rather under sixty commit- as Secretary General a little over one year ago, tees of experts at work at present - tended to it seemed to me at first sight that whereas over fix its own programme and its programmes tend- the years the Consultative Assembly, for a very ed to be what the experts themselves felt to be modest expenditure of resources, had given ex- immediately useful or indeed what a particular tremely good results, the work of the inter- expert could persuade the committee to adopt. governmental side of the Council of Europe, On the other hand, matters which might perhaps much more expensive and taking up a far greater well have been handled by the committees tend- part of our resources, although it had produced ed to be left on one side either because they some valuable results, nevertheless had not were not particularly thought of or because they achieved much that had been hoped for it at the presented difficulties. It seemed therefore that outset. I therefore looked at our organisation to there was not much chance of our making pro- see whether any administrative reforms could be gress towards a proper system of priorities in carried out which would improve matters and in our work unless we had a central programming the course of the year two reforms have been unit. We set up such a unit, very small indeed at put in hand. First, in the social and public the present moment, in the Secretariat this Janu- health sector where between a number of organs ary. The purpose of this central programming our activities have become extremely complex unit is to enable the various elements in pro- and inter-twined, the Deputies agreed to entrust gramming, whether they are provided by the As- to me the appointment of an independent expert sembly or by individual Governments or by ideas to make recommendations as to the functions collected from other organisations or indeed any and structures in this field. An extremely dis- other source, to be reviewed and criticised tinguished senior magistrate of the Cour des against the background of our work as a whole. Comptes in Paris is at present working upon This essential piece of machinery will, I think, this and will recommend in due course. Second-

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enable us to take a view of the utility of any It was therefore to meet these difficulties particular project in all the surrounding circum- that the paper now before you was drawn up. It stances of our work. Of course, this body will attempts, in fact, to provide for central programm- have no authority of its own ; it is merely an ing on grounds where agreement can be obtained instrument which will be available to Govern- and in pursuit of definite objectives. ments, to members of the Assembly, and to the Secretariat, a system of compilation and of criti- May I be allowed to say a word about the cism when required. role of the Secretariat. It seems to me that in an organisation of 18 States, where the procedure is The second fact that struck me as we pro- not based upon a treaty setting out in great de- ceeded through the year was that, whereas in tail the design and purposes of the organisation, public the greater part of political attention is there is little hope of obtaining consistent pro- focused upon the grounds of disagreement in gress with inter-governmental work if, if I may Europe of which we can all very readily think say so with all respect, the position is left en- without needing to enumerate them, relatively tirely to Governments. We cannot expect that little attention had been given to a systematic Ministers of Foreign Affairs, busy with many survey of the grounds on which agreement is things, will lie awake at night wondering what possible, particularly in the vast field of human the Council of Europe should do in the years activities of a technical character where there ahead. It is, I believe, the duty of the Secretariat must surely be very many matters on which to study closely the decisions and policies of agreements between Governments would be per- Governments and then to make proposals from fectly possible if the necessary steps were time to time to Governments in the light of what taken to isolate these matters and to organise they understand the position of those Govern- the work. ments should be. These proposals must necess- arily be subjected to minute examination by The second task, therefore, seemed to be for Governments and in due course will be modified the Secretariat to examine the field of work of or altered or rejected by Governments as the the Council of Europe and to try to describe case may be. But ir seems to me that this ought broadly speaking those areas in which such to be a service performed by the Secretariat for agreement might be possible. And here let me Governments and this particular paper is intend- say that in an organism such as ours where un- ed to serve in that respect. It is a result of con- animity is necessary on any project of real im- tact with many Governments. It has been modi- portance, it seems to me to make very little fied in the light of the views of a number of sense on the inter-governmental side for us to do Governments, there have been additions and other than seek for those grounds on which subtractions and alterations. As it stands now, agreement is possible in an inter-governmental it contains not just a paper produced by the sense. Secretariat but it contains a very great many ideas contributed by Governments to the final Finally, there was a third respect in which production. It is intended to embrace all previ- the compilation of priorities or of a programme ous programming and planning projects. There presented great difficulties. If we were provided are many matters in hand in the Assembly, the with the necessary central programming mechan- Committee of Ministers and elsewhere, pointing ism and if we succeeded in identifying the areas towards the adoption of an overall programme, in which it might be possible to proceed and to and anything that we do, if authorised in pursuit obtain agreement in a larger number of detailed of this paper, must take account of all of this. matters, there was still no real criterion for judgment as to what should be included in the The second observation I would like to make programme and what should not, because the ulti- about this paper is the nature of the lists which mate objectives of the inter-governmental pro- appear at the end of it. When the paper was first gramme of the Council of Europe were not defin- produced, it was observed by several Govern- ed. We still came back to the position that any ments that it was difficult to envisage what was individual project would have to be evaluated on really meant by the paper unless lists were its own intrinsic merit instead of being also drawn up of a few examples of the kind of pro- evaluated by the contribution which it might or ject which might fall in any one given category might not make to some ultimate objective. of activity. Therefore, the Committee is not asked in any way to approve as such the lists of projects at the end of the paper. Some of them

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may be generally acceptable but others may not. was produced, nothing that this document con- They are merely put in for the purpose of illus - tains would in any way limit the freedom of tration. Governments to accept or reject the programme or to deal with it in what other way they please. It is a distinguishing feature of the proposals Thus the acid test of the value of this paper is in the paper that they relate the work of the not really the paper itself, which contains no- Council of Europe in the inter-governmental thing very notable or surprising, but, on the con- field, including of course the EFTA Members of trary, what is I think a large measure of deduct- the Council of Europe, to the work of the Com- ion from experience of the actual situation. The munities. There is already a very useful and acid test of the correctness of those deductions acceptable measure of consultation between the would come when the resulting programme was Council of Europe and the Commission, as in- submitted to Governments. deed there is between ourselves and the Secret- ariat of EFTA. But I think it is worth emphasis- Just as this paper is the result of a great ing that the procedures outlined in the paper deal of delicate negotiation - if I may use so are in themselves nothing new. They do not pro- magnificent a word - with Governments, in which pose any action by the Council of Europe of a difficulties have been ironed out, in which doubts kind which would not be taken now without any have been allayed, in which additions have been further decisions of the Committee of Ministers made, and so forth, so, I imagine, any programme, and, therefore, their presence in this paper does if it were to be generally acceptable to Govern- not in any way subtract anything from the action ments all round the table, would have to be the of the Communities or in any way infringe their result of a similar process of contact and con- position. On the contrary, the co-operation of sultation between the Secretariat and Govern- the Communities is entirely a matter of their ments throughout the formation of the programme. free will. This would be a question of close I do not want to look too far ahead and try to consultation between the Secretariats and, in- envisage the actual form of such a programme, deed, if co-operation should not be so desired because inevitably it would have to result from by the Commission, there would always be the experience as we began to compile it. But my six representatives of the Communities' Govern- feeling is that it would have to be phased over ments here in the Council of Europe who would a period of years, and that in addition it might be able to watch the position. So that as far as well have to be approached also sector by sect- the existing practices of the Council of Europe or. are concerned what the paper does is to propose to cast them into a coherent form as part of an I do not think I need add anything to the overall plan. conclusions of the paper, which are perfectly clear, so I will merely complete what I have to But this would not alter the relationship of say by expressing the personal opinion that the our activities to those of the Communities ex- Council of Europe is a substantial instrument cept in so far as an increasing degree of con- into which Governments are putting a great deal sultation to define the ultimate objective would of money, of valuable personnel, and of effort. I enable us to work in much closer harmony with believe that a more substantial result could be them. There is one exception to this and that is obtained in our inter-governmental work if it was the suggestion with regard to partial agreements comprehensively planned as a whole and if it amongst Members of the Council of Europe not was designed to meet ultimate objectives. members of the Six. This is a suggestion which has its inspiration in a letter addressed to me THE CHAIRMAN. - I thank the Secretary by Mr. Rey in which he put forward this idea General for his most interesting statement and with the approval of the Commission. This, for drawing up Document CM (65) 64 Revised, therefore, would have the backing both of the which he has just presented. The discussion is Commission and of the Council of Europe if open. approved by your Committee. Mr. BOYESEN (Norway). - Mr. Chairman, we The next thing to be observed about the are entirely in favour of the ideas which the paper is that the substance of it really lies not Secretary General has outlined in the paper in this document itself but in the actual drawing which we have before us and, indeed, we also up of a programme. This document merely out- appreciate the efforts which he has undertaken lines the manner in which the Secretariat would to rationalise and project into the future the propose to approach its task. If the programme work and the organisation of the Secretariat. We

- 129 - Official Report — Thirty-Sixth Session of the Committee of Ministers — 3rd May 1965 - 3 p.m. think that we may well, in the past, perhaps not tails. The Netherlands Government thinks that have had a sufficient sense of priorities in the it would be very useful if the Secretary General work of this organisation and we believe that could be instructed to draw up a programme of the ideas in this paper, as we have heard them work, as foreseen in this document. amplified by the Secretary General just now, may well lead to beneficial results for the work Mr. BONFILS (France). - Mr. Chairman, I of this organisation in the future. Thank you. would like to pay tribute to the Secretary Gener- al for the efforts he has devoted for several Mr. HAEKKERUP (Denmark). - Mr, Chairman, weeks past to drawing up the paper now before I should also like to say that we have, in my us. The adjustments and revisions which, as he Government, studied the document before us stated, involved some delicate negotiation, and with the greatest interest and we would like to absorbed new ideas day after day, have been his thank our Secretary General for the trouble he constant concern and are understood, in principle, has taken upon himself in trying to think out by my Government. It is indeed perfectly reason- what the position of the Council of Europe is able that the Secretary General of an organisa- and what the future trend of developments of the tion like the Council of Europe should want to Council of Europe may be. We look upon the know what his work programme is for a fairly situation with the many institutions we have in long time ahead, if not in the distant future at Europe with some - how should I express it ? - least over the medium term, and his wishes, reluctance. We are getting more and more organ- therefore, are wholly justified and acceptable. isations and we are afraid that these may tend He is similarly concerned with the procedures to overlap. Therefore, I think it is extremely for determining the priorities of this programme, valuable that our Secretary General has tried to and it is proper that he should have precise find out what will be the position of the Council indications of these procedures, so that he can of Europe in collaboration with, and in a division in future pursue a more coherent policy in the of work with, the various other European and context of the Statute of the Council. After that international organisations, and I think that the preamble, I would like to be permitted a few result here is very encouraging. comments. First, while it may justifiably be maintained that the various activities of the I do understand that this is only preliminary Council of Europe are at present incoherent and work, so to speak, that the work concerning inadequate and often overlap, I feel that it must future activities will have to be done when a nevertheless not be forgotten that, since the programme is to be worked out. We will, in my Council's inception almost fifteen years ago, Government, be very much interested in co- there has been a constant adjustment between operating in the working out of such a programme, the recommendations made by the parliament- and we find that we can whole-heartedly accept arians to the Governments, the latter's reactions what the Secretary General has said and what is to them and the activities initiated by the Gov- stated in the document here, so we support the ernments themselves ; whether for the assess- document and the statement made by the Secret- ment of the past or the determination of future ary General. possibilities, there is no doubt that this ex- change will continue and that, in the last analy- Mr. PHILIPSE (Netherlands). - Mr. Chairman, sis, the Council's achievement will be as much the Netherlands Government has examined with the outcome of the Assembly's political express- the greatest interest the Secretary General's ion as of the common political will of the 18 document and, in principle, we do agree with Governments. The Secretary General is, how- the contents. We think that the subjects men - ever, fully aware of this, and I mention it merely tioned in the Annex will allow member States to to show that a more or less permanent framework make a useful start by implementing the decis- persists. It is indeed because the Assembly and ions of the Committee of Ministers on the harm- and the Governments alike were aware of the onisation and establishment of European norms. need to reconsider these problems and to intro- A number of subjects are mentioned in the pa- duce some order into the various activities pers such as lists of possible examples of mat- which had accumulated and resulted in this con- ters to be dealt with in priority. We have a small fusion that, as you know, the Assembly started hesitation about No. 7 on page 8, but I do not on a work programme and discussed it with the think this is the time and place to go into de- Governments and that the Committee of Ministers

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themselves asked the Deputies in 1963, if not jects which are connected with or studied in the to draw up an account, at least to clarify their light of matters already examined at Brussels. ideas, if I may so put it, by asking the compet- This delegation feels that the results achieved ent expert committees to consider and report to or attainable by the European Economic Com- the Committee of Ministers on the possibility of munity are bound to correspond to the nature of preparing conventions based on agreements al- that institution, in other words, the political ready concluded within other economic groupings idea or philosophy underlying the Treaty of and, apart from this harmonisation, to instruct Rome is obviously that everything done by EEC these committees to make specific proposals, is based on a balanced combination of advan- after a thorough study, regarding areas within tages obtained and concessions made, and this the Council's general fields of competence point must be very clearly understood so that where it seemed possible to formulate European there shall be no confusion there either. Lastly, standards. it must naturally also be clearly understood that there cannot be any question of a division of I will not revert to this question. The Secret- work between the Council of Europe and the ary General has explained it very clearly and European Economic Community which might has observed that, although these instructions serve to set limits to the political and economic were renewed by this same Committee of Minis- mission of the Community. All this has been ters in December 1964, the Deputies reached a pointed out to us ; I refer to the matter merely point where they really wondered whether it was to express the attitude of this delegation. possible to establish these priorities. I would, however, like to add that the work which has In conclusion, we are prepared to accept the been done by the committees of experts and by substance of the memorandum, but subject to the Deputies is by no means negligible, it has these comments and explanations. produced certain results and - this is my last word on the subject - I think it is essential that Mr. MARIENI (Italy). - Mr. Chairman, the this contribution of the Ministers' Deputies Italian Government consider that the Secretary should be embodied in the material which the General's initiative is one of the valuable con- Secretary General proposes using in order to tributions of recent years to our common effort establish his work programme. He stated in his to strengthen the political role of the Council of memorandum that the programme would take ac- Europe. count of the recommendations of the Consulta- tive Assembly, proposals from member Govern- We agree with the Secretary General on the ments and subjects suggesting themselves as a potential danger of the present division of Eu- result of consultation with the other organisa- rope into two economic groups. For it is clear tions with which the Council of Europe main- that whatever the estimated effects of that divis- tains close working relationships. I hold - and ion in the strictly economic and commercial this is my second point - that the work already sphere - and here I would like to refer to the done by the committees of experts and by the interesting considerations in the study submit - Deputies should not be disregarded but should, ted to us by the Secretariat (Document CM (65) even if it has come to a standstill, constitute 62) - it may easily have a negative political material for the programme. effect by drawing attention to the obstacles that still beset the road to European unification. My third comment concerns the Secretary General's statement - for which this delegation The solutions proposed are various. The thanks him - that the Governments will always Secretary General's project, while allowing for be in a position to make their views known if the difficulties and obstacles, nevertheless re- necessary and, of course, to make a selection, in veals possibilities of immediate interest and the context of inter-governmental co-operation, paves the way for an instrument of policy which from among the subjects proposed. What I would could prove very useful in time. like to say applies perhaps particularly to sub-

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It is a question, basically, of establishing In this particular case, they also welcome through collaboration a close relationship be- the suggestions put forward by the Secretary tween the Council's work and that of EEC. The General in Document CM (65) 64 Revised. While respective competences of the two organisations leaving certain questions open, this memorandum, must naturally not be interfered with. The Coun- if considered in the light of its predecessors, cil would preserve its traditional sphere and nevertheless forms a bridge enabling us to make methods of work ; but they would be orientated, a start on future activities and co-operation as it were, towards taking into consideration with other countries within the Council of Europe the past or future arrangements of the Brussels framework. Community to the advantage of both organisa- tions. The Federal Government therefore wish in principle to support the views put forward in the As the Secretary General rightly pointed out memorandum, subject to amplification of the in his memorandum, this is only a matter of good points enumerated in the Appendix and their re- sense. In any event, there would be great politi- view in consultation with the European Com- cal advantages in re-assessing in a large meas- munities and with the assistance of the Minis- ure the lawful function, if I may so put it, of our ters' Deputies. common European institution, which we consider to be the rightful function of the Strasbourg Mr. PADLEY (United Kingdom). - Well, Mr. organisation. Chairman, we appreciate the Secretary General's initiative and generally support the proposals In addition - and I would like to draw the made in this paper. We endorse his suggestion attention of the representatives of the EEC that he should now prepare a programme of work countries to this point - this initiative would based on the ideas of this memorandum for con- facilitate the fulfilment of an obligation to which sideration and approval at the next meeting of the Six are legally committed by Article 230 of the Committee of Ministers. I am very glad that the Treaty of Rome. At the same time, it is ob- the discussion has revealed general support for vious that the project has yet to be worked out that view. in detail and that the sectors where a parallel- ism can be established between Brussels and Our view remains that the creation of com- Strasbourg must be defined more exactly before mon European standards will be easier in fields the Committee of Ministers can express a com- where neither EEC nor EFTA have yet decided mon intent to proceed along the lines proposed on their policy. Where either Organisation has by the Secretary General. already reached agreement within itself or has made out the lines of its probable future policy, Our delegation fully support the proposal it may be more difficult for other countries to that the Secretary General should be asked to bring their policy into complete conformity. prepare, on the basis of the data obtained through contacts with the EEC Commission, a detailed The Secretariat and the Ministers' Deputies programme to be submitted to our Committee at have already given some preliminary considera- their next session in December. tion to fields in which agreement might be reached between member countries. We consider Mr. PRILL (Federal Republic of Germany) they should be given a renewed mandate to pur- (Interpretation). - Mr. Chairman, I can in general sue action on these lines. endorse the statements made by my French col- league as they largely represent my own Govern- My final point is this : we understand that ment's views. the Secretary General will continue his discuss- ions with the EEC Commission about the scope The Federal Government welcome in principle of the problems that might suitably be dealt with all projects designed to impart a stimulus to the in the Council of Europe. Council of Europe's work within the terms of its Statute. We hope we will, in the same way, keep closely in touch with the other appropriate eco- nomic and functional organisations, particularly

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EFTA, and with Governments who may also have suggestions that would be relevant in this con- THE CHAIRMAN. - Thank you. text. It would not be right, in our view, to allow any one organisation in Europe to determine the I call the representative of Austria. Council's work programme. It would be helpful if the Secretary General could, from time to time, Mr. BOBLETER (Austria) (Interpretation). - report to the Council on the results of his con- Mr. Chairman, I, too, would like to associate my- sultations with the various bodies concerned. self with those who have expressed their thanks to the Secretary General. THE CHAIRMAN. - Thank you. I would like to thank him not only for his I call the representative of Greece. statement but also for his memorandum. On be- half of the Austrian delegation, I would like to Mr. PAPPAS (Greece). - Mr. Chairman, we state briefly that we fully support the concrete have listened with close attention to the paper proposals put forward by the Secretary General. which the Secretary General kindly read to us, We in Austria feel that they constitute a practi- and also with much pleasure to the compliment- cal and realistic course which opens up a poss- ary remarks which followed. I would not wish to ibility of arrangements leading to the Greater omit adding to our congratulations our sincere Europe we all want to see come into being. thanks to the whole Secretariat and to the Secret- ary General personally for the hard work he has Mr. LINDH (Sweden). - Mr. Chairman, I want done. to thank the Secretary General on behalf of the Swedish Government for the work he has under- THE CHAIRMAN. - Thank you. taken, and to welcome the ideas that are ex- pressed in the document which is before this I call the representative of Luxembourg. Committee. Mr. FISCHBACH (Luxembourg). - On behalf The Swedish Government is in favour of the of the Luxembourg Government I wish to con- Secretary General continuing his efforts to work gratulate the Secretary General on his remarkable out a working programme of the kind he has in statement imbued with a sincere desire to put mind. new life into the work of the Council of Europe. I also congratulate him on his memorandum. It is our feeling that a number of questions which have been raised by other speakers this I have listened with great interest to the afternoon will find their reply in the course of points of view of previous speakers. I note that this continued effort in working out the pro- some expressed outright support while the sup- gramme. port of others was more qualified. But at least all the speakers so far have declared their sup- We would be very glad if the target date of port in principle. December of this year could be met. Thank you very much. For my part, I also support the principle. I think this sketch of a Council of Europe pro- THE CHAIRMAN. - Does anyone else wish gramme of work is very sound. But I agree with to speak ? the representatives of France and the Federal Republic of Germany that more detail is required Allow me, in my turn, to say that the Swiss of the programme and of the subjects listed in Government, too, found the memorandum present- the paper submitted to us. ed by the Secretary General of great interest. In accordance with the view unanimously expressed In order to obviate what some speakers fear, here today, we earnestly desire that the action namely the generation of friction - although that he has undertaken may be crowned with success. is unavoidable - I think it essential for the pro- This unanimous view has found expression above gramme to be made more precise, and that this all in the desire to have a more detailed pro- be done in collaboration between the Secretary gramme presented at the December Session in General, the Committee of Ministers and the Executives of the European Communities.

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Paris. I will sum up the sense of the meeting by that we make of our objectives. I see no diffi- saying that this Session of the Committee of culty myself in reconciling our views over a vast Ministers requests the Secretary General to field of subjects, although there may well be present a paper at the December Session giving certain subjects which will present difficulties. more precise data for a work programme drawn up along the lines proposed by him in his ad- I don't think, Sir, that I need again say what mirable presentation of Document CM (65) 64 is in the paper. The distinguished delegate of Revised. the United Kingdom mentioned keeping in touch with other organisations. During the past year Does the Committee agree with this con- we have made an intensive effort as a result of clusion ? the encouragement of this Committee, a year ago to get closer to our brother organisations, Then it is accepted. Thank you. both in Europe and outside, and by and large, this has been very successful. There are very Does the Secretary General wish to speak ? many more hot-lines between Secretaries General than ever before in Europe. Mr. Peter SMITHERS (Secretary General). - Perhaps I might just say a brief word in the sum- I have been asked if I could say something ming up, first of all to thank the Committee for as to whether we envisage a meeting later this the decision they have taken which will be a year between the Programming Unit and the Sub- great encouragement to the work of the Secret- Committee on Programmes of the Committee of ariat in the very heavy task which now has de- Ministers. I would take this to be a matter of volved upon it. course. The Programming Unit will in fact be the servant of the Committee of Ministers and I particularly would like to thank the Com- will be available for them to facilitate their mittee for the very favourable things they have work, to do research for them and studies etc. said about our paper which was a joint effort by as they may wish. the persons concerned in the Secretariat. Finally, Sir, perhaps I might just refer to I believe the distinguished delegate from what was said by the distinguished delegate Sweden was right when he said that in all prob- from Austria when he said that this programme ability the work which will come out of the would make a contribution towards the Greater programme will answer the questions that have Europe. This was the object of the Council of been raised round the table. Europe from its start, and I believe that this will enable us to approach a little nearer, as But there is no reason why they should not the years go by, to the ultimate objective with be engaged upon immediately, and I very much which our Council was founded and with which hope that any Government which has views on we hope it will ultimately complete its work. this matter will assist us by putting those views to us, as indeed I think was suggested by the THE CHAIRMAN. - I thank the Secretary distinguished Foreign Minister of Denmark. General and wish him every success in his en- deavours to that end. So I believe really that the problem of the division of labour between the Council of Europe and the Communities, which is of great import- VII. Date and place of the 37th Session ance, will resolve itself without very much diffi- culty in practice. THE CHAIRMAN. - The next item on the Agenda is "Date and place of the 37th Session". The Communities, I understand, like to work Here is a very short note on the subject, which ad hoc on particular projects. The Council of I will read out : Europe, however, will now be able to work to- wards objectives and it will be a matter of norm- "Bearing in mind the proposals made at al good relations between ourselves and the Secretariat level for Ministerial meetings of Communities to reconcile the preference of the other organisations, it is suggested that the Communities for working ad hoc with us in those 37th Session of the Committee of Ministers and matters in which they wish to do with the pursuit the Colloquy with representatives of the Assem-

- 134 - Official Report — Thirty-Sixth Session of the Committee of Ministers — 3rd May 1965 - 3 p.m. bly take place on 10th and 11th December in subject of study within the Council of Europe; Paris." since these questions are not examined by any other institution, there is no danger of duplica- Are there any objections ? tion. As there are no objections, the proposal is Having said that, I wish to thank the Secret- adopted. ary General once again. THE CHAIRMAN. - This happy initiative in- VIII. Other business deed shows a way of promoting the European idea in all our countries. I am not betraying any THE CHAIRMAN. - We now have to deal secret in saying that it is fully in keeping with with other business. Does any delegation wish the conception of the Swiss State that move- to make a suggestion ? ments from below - from the commune - should increase in number : they are the initiatives Mr. BOBLETER (Austria) (Interpretation). - which have a chance of succeeding. Mr. Chairman, I will be very brief. At the end of March the Secretary General, accompanied by I believe, similarly, that Europe Day, which members of his Secretariat and a few representa- is to be celebrated the day after tomorrow, can tives of the Council of Europe, visited Innsbruck be used in our respective countries for demon- on the occasion of the presentation of the Euro- strations in the villages, boroughs, districts or pean Prize to the capital of the Tyrol province. counties with a view to strengthening this idea. The Federal Chancellor and Minister for Foreign Affairs and many foreign and Austrian Members Mr. Peter SMITHERS (Secretary General). - of Parliament were present. The Committee on Sir, I am very much obliged to the distinguished Local Authorities held a joint meeting with the delegate from Austria for the kind things he said Standing Committee of the European Conference about the Innsbruck meeting. It was extremely of Local Authorities. In short, the long week- valuable and I believe that the investigations end constituted a truly European occasion, now going forward in the local government field thanks to the co-operation and help of the Secret- will produce recommendations in due course ary General and his collaborators. which will be of interest to those Governments which wish to pursue the activities of the Coun- On behalf of the Austrian authorities and cil of Europe in the local government field. especially of Dr. Lugger, Mayor of the capital of our federal province, I would like to express THE CHAIRMAN. - Thank you, Secretary my warmest thanks for that occasion and con- General. clude by observing that such occasions which spring from the foundations - the boroughs, 1 towns and villages - are an excellent basis for IX. Press communiqué European unification : I do not mean making propaganda for the European idea but associat- THE CHAIRMAN. - There only remains the ing the broad masses of the population with the press communiqué ; have we the draft ? idea and enabling them to understand it. THE DIRECTOR OF INFORMATION. - With I should like to connect this up with a your permission, Mr. Chairman, as for technical second comment. I believe that, in the reorganis- reasons the French and English versions have ation of the Secretariat in line with the ideas not yet been distributed - the French version which the Secretary General is bringing out in which was drafted first is being distributed increasing numbers and seeking to put into now - I will read the French and English texts practice, it would be beneficial if regional and paragraph by paragraph. municipal questions - especially in view of their administrative aspects : formation of special sections, etc. - were to constitute a positive 1. "Sous la présidence de M. F.T. Wahlen du

1. See page 216.

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Conseil fédéral suisse et chef du Département to face the problems which arise and the necess- politique fédéral, le Comité des Ministres du ity of maintaining as a final objective the eco- Conseil de I'Europe a siégé à Strasbourg le 3 nomic integration on the widest possible geo- mai 1965". graphical basis". "Under the chairmanship of Mr. F.T. Wahlen, 5. "Un échange de vues a eu lieu ensuite sur member of the Swiss Federal Council and head I'état des négociations tarifaires du GATT. Il a of the Federal Political Department, the Comit- fait apparaître à quel point I'intérêt collectif tee of Ministers of the Council of Europe met in des Etats européens doit les conduire à faire Strasbourg on 3rd May 1965". tout ce qui est en lew pouvoir en vue d'une réussite de la négociation Kennedy. Celle-ci 2. "Il a accueilli M. Bore Olivier, Premier apparaît notamment comme I'un des moyens Ministre et Ministre des Affaires Etrangères et d'atténuer les effets de I'existence de deux du Commonwealth de Malte, pays qui depuis le groupements économiques sur le commerce intra- 29 avril 1965 est membre du Conseil de I'Eu- européen". rope ". "An exchange of views then took place on "The Committee welcomed Mr. Borg Olivier, the stage reached in the GATT tariff negotia- Prime Minister and Minister for Commonwealth tions. It showed how far the collective interest and Foreign Affairs of Malta, which became a of European countries must lead them to do every- Member of the Council of Europe on 29th April thing in their power to make the Kennedy Round 1965". succeed. This in fact is one of the means of diminishing the effects on intra-European trade 3. "Le Comité a repris I'examen commencé en of the existence of two economic groupings". décembre 1964 des relations du Conseil de I'Eu- Now here are two paragraphs which do not rope avec les Etats tiers. Plusiers délégations appear in the French text distributed to you : ont rendu compte de l'évolution positive de leurs relations bilatérales avec les pays de 6. "Le Comité des Ministres après une dis- I'Europe orientals, I 'échange de vues sur ce cussion introduite par un exposé du Secrétaire point a été fructueux, il sera repris au cours de Général a décidé de charger ce dernier d'établir prochaines sessions du Comité des Ministres ". un programme de travail pour les activités inter- gouvernementales du Conseil de I'Europe. Ce "The Committee returned to the study that programme de travail lui sera soumis à sa ses- started in December 1964 of the relations of the sion de décembre ". Council of Europe with other countries. Several delegations gave an account of the positive "The Committee of Ministers, after listening evolution of their bilateral relations with East- to a statement by the Secretary General, instruct- ern European countries, the exchange of views ed him to draw up a programme of work for the on this point was fruitful and the question will inter-governmental activities of the Council of be taken up again at future sessions of the Com- Europe. This programme of work will be submit- mittee of Ministers". ted to the Committee at their December Session".

4. "Il a été precédé à un tour d'horizon des "Le Comité tiendra sa prochaine réunion aspects politiques de I'intégration économique ministérielle à Paris les 10 et 11 décembre 1965 européenne ainsi que des développements ré- sous la présidence de M. H.E. Isik, Ministre des cents au sein de la Communauté Européenne et Affaires Etrangères de Turquie". de I'Association européenne de Libre Echange. Ce tour d'horizon a mis en lumière la volonté "The Committee will hold their next Minis- des gouvernements de faire face aux problèmes terial meeting in Paris on 10th and 11th Decem- qui se posent et la nécessité de garder comme ber 1965, under the chairmanship of Mr. H.E. objectif final de leurs efforts une intégration Isik, Minister for Foreign Affairs of Turkey". économique sur la base géographique la plus étendue ". THE CHAIRMAN. - Do the Committee of Ministers wish to have the text in front of them "A survey was made of the political aspects before taking a decision, or are they satisfied of economic integration and of recent develop- with hearing it read out ? ments within the European Community and the European Free Trade Association. This survey Mr. MARIENI (Italy). - Mr. Chairman, I did demonstrated the general will of the Governments

- 136 - Official Report — Thirty-Sixth Session of the Committee of Ministers — 3rd May 1965 - 15 p.m. not hear the text very clearly. Is there a refer- countries" whereas it is a question of third ence in the draft communiqué, before the date of States. Perhaps they are third countries. If so, our next session, to the instructions given by the two texts should be harmonised. the Committee of Ministers to the Secretary General ? They are not mentioned in the text THE DIRECTOR OF INFORMATION. - It is which has just been distributed to us. true that the English text speaks of "other countries" and not "third countries", while the THE CHAIRMAN. - There are indeed various French text has the words "des pays tiers". points which are not mentioned in the text dis- What are the Committee's wishes ? "Des Etats tributed. I would therefore ask the Director of tiers" in French and in English "other States" ? Information to read these passages again. Mr. PHILIPSE (Netherlands). - Mr. Chairman, THE DIRECTOR OF INFORMATION. - There in the third paragraph, a little bit further in the are two paragraphs which do not yet appear in French text, it states ". . . leurs relations bi- the text distributed. The last two points read latérales avec I'Europe orientale". So far, I as follows : think we have been rather cautious in not saying too specifically that we were discussing East "The Committee of Ministers, after listening European countries. to a statement by the Secretary General, instruct- ed him to draw up a programme of work for the THE DIRECTOR OF INFORMATION. - Mr. inter-governmental activities of the Council of Chairman, we are at the Committee's service. In Europe. This programme of work will be submit- the French version we proposed "avec les pays ted to the Committee at their December Session". de I'Europe orientale", in the English version "Eastern European countries". "The Committee will hold their next Minis- terial meeting in Paris on 10th and 11th Decem- THE CHAIRMAN. - Could we not simply say ber 1965, under the chairmanship of Mr. H.E. "with those countries", referring back to the Isik, Minister for Foreign Affairs of Turkey". previous sentence ? THE CHAIRMAN. - Gentlemen, are there Mr. BOYESEN (Norway). - I had a question any other comments ? mark in mind with regard to this reference to Eastern Europe. It has been said and we have Mr. LINDH (Sweden). - Mr. President, I apolo- heard accounts of the useful developments of bi- gise to the other members of this Committee but lateral relations with those countries, and this we are working now on the text without awaiting has been useful, and there will be another re- an English version. Am I correct in that assump- view on that at the next Ministerial meeting. tion ? While these developments are fortunate and while the discussions may be useful, I am not THE DIRECTOR OF INFORMATION. - The sure that the public announcement is equally English version is ready, but it has not been useful. It may easily give the impression that distributed because of certain mistakes. I there- these bilateral developments, while still hap- fore will read the English version as it now pening on a "spontaneous" basis, are the sub- stands. ject of some sort of collective review and ap- proach on the part of this Organisation. I am not THE CHAIRMAN. - The representative of quite sure that this is so useful. But, with your France wishes to speak. amendment, not making the reference specific to Eastern Europe, perhaps my objection is of less Mr. BONFILS (France). - Mr. Chairman, I do validity. not know whether this is the right moment to discuss the draft communiqué and propose amend- THE CHAIRMAN. - Would you put forward a ments to it. If so, I have two or three comments definite proposal ? to make. Mr. BOYESEN (Norway). - No, Sir. First, it seemed to me on hearing the French and English texts read out that there is a differ- Mr. LINDH (Sweden). - Having in mind the ence in the third paragraph ; I thought that in spirit in which Ministers discussed this in De- the first sentence Mr. Levy spoke of "third

- 137 - Official Report — Thirty-Sixth Session of the Committee of Ministers — 3rd May 1965 - 15 p.m. cember last, I have had preoccupations very THE DIRECTOR OF INFORMATION. - In similar to those of the Norwegian delegate. I this case the end of the first paragraph on page would propose for the consideration of the Com- 2 of the French text would read, in English, as mittee that we delete the two last sentences follows : "This would indeed provide means of about ". . . I'échange de vues sur ce point a creating the most favourable conditions for the été fructueux etc. " I think it is more in the continuation and further development of intra- spirit of the December meeting that one should European trade". leave that out. THE CHAIRMAN. - Can the representative of Denmark accept this proposal ?

THE DIRECTOR OF INFORMATION. - The Mr. HAEKKERUP (Denmark). - Mr. Chairman, Swedish Representative's proposal means that I do not think that would really be the truth. I do in French the paragraph would read as follows : not think it would create the most favourable conditions for intra-European trade. The most "Le Comité a repris I'examen de décembre favourable conditions for intra-European trade 1964 des relations du Conseil de I'Europe avec would be not to have two groupings. I think the les Etats tiers. Plusieurs délégations ont rendu text as it stands is correct, and I do not know compte de I'évolution positive des relations bi- whether it would be changed over to a positive latérales avec les pays européens non membres. " wording but it could not be in the phrasing sug- gested by the French delegation because that The English version would read : would not be the truth and we should disclose the fact, that was mentioned in this debate, that "The Committee returned to the study they the Kennedy Round is not a substitute for a started in December 1964 on the relations of the European solution. Council of Europe with other States. Several delegations gave an account of the positive Mr. PADLEY (United Kingdom). - Mr. Chair- evolution of their bilateral relations with Euro- man, I am entirely in agreement with the Danish pean non-member countries." delegate. THE CHAIRMAN. - Does this satisfy the THE DIRECTOR OF INFORMATION. - Mr. representative of Sweden ? Chairman there are two contradictory proposals ; the French and English proposals do not agree, (Mr. Lindh (Sweden) signified assent) the Danish and British proposals correspond to what we have described. It rests with the Com- Mr. BOBLETER (Austria). - I agree to the mittee to decide. There is no compromise pro- text just read out by the Director of Information. posal. Thank you. THE CHAIRMAN. - Could the two delega- THE CHAIRMAN. - Are there any other com- tions harmonise their texts ? ments ? THE DIRECTOR OF INFORMATION. - "To Mr. BONFILS (France). - Mr. Chairman, if create conditions likely to favour the continua- the Committee are agreed on this point, and I tion and further development of intra-European personally approve the deletion, I would like to trade". propose an amendment to the paragraph which begins with the words : "An exchange of views THE CHAIRMAN. - Can the Danish delegate then took place on the stage reached in the agree ? GATT tariff negotiations." On the subject of the Kennedy Round the last sentence of this Mr. HAEKKERUP (Denmark). - Could we paragraph reads : "This is in fact one of the hear it again, in English anyhow ? means of diminishing the effects of intra-Euro- pean trade of the existence of two economic THE DIRECTOR OF INFORMATION. - Well, groupings". My proposal is that the text should the English version would read : "This would be amended to read : "Comme I'un des moyens indeed provide a means to create conditions de créer les conditions les plus favorable à la likely to favour the continuation and further poursuite et un dévelopement des échanges com- development of intra-European trade". merciaux intra-européens ".

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Mr. HAEKKERUP (Denmark). - But, Mr. made. Are there any other comments on the text Chairman, do you really think this is the truth ? of the communiqué ? . . . Thank you. I do not think so. The truth would be to say : "To reduce the inconveniences which stem from Gentlemen, we have thus reached the end of the divisions of the European market". If you our discussions. The representative of Turkey have to put it in a positive form, and to say it wishes to speak. created better conditions, then you have to add : "Than those established by the division of Mr. ISIK (Turkey). - Mr. Chairman, I assume Europe in two economic blocks". Then you you are about to close the 36th Session of our have to add that because, as it stands there, it Committee. In so doing you will deprive us of a is not the truth, and it is not in conformity with Chairman whose ability, experience and spiritual the discussion we have had. and intellectual merits have aroused the admira- tion of the whole Committee. As the Committee Mr. PADLEY (United Kingdom). - And again, of Ministers' next Chairman, I would like, on Mr. Chairman, the British view is exactly that behalf of the whole Committee, to take this of our Danish colleague. opportunity of expressing our gratitude for the splendid manner in which you have conducted THE CHAIRMAN. - I call the representative our discussions, with a friendly ease which never of Turkey. lacked authority. You have enabled us to con- centrate our efforts on the most important practi- Mr. ISIK (Turkey). - I could perhaps help to cal European problems under the best conditions. eliminate the divergence by proposing that the We are aware of the varied qualities which are last sentence be wholly deleted. required for carrying out this task with such success and facility. Mr. HAEKKERUP (Denmark). - I would cer- tainly accept that because I am always of the So I wish simply to thank you again for your opinion that the less you say in a communiqué, excellent chairmanship. the better. I myself shall do my utmost to imitate you, but I have to confess that my chances of suc- ceeding do not seem very great. Thank you very THE CHAIRMAN. - Then we have thus much. succeeded in reaching an understanding. Are there any other comments on the communiqué ? THE CHAIRMAN. - Thank you very much. Mr. BONFILS (France). - Mr. Chairman, I do If today's session has been a success, apologise for trespassing on your patience. It Gentlemen, it is thanks to your co-operation, has just been pointed out to me that there is a your understanding and the harmony which has definite omission in the paragraph which begins : reigned in this room. "A survey was made of the political aspects of economic integration and of recent developments In closing the session, let me not omit to within the European Community . . .". The refer- renew my thanks to the Secretary General and ence is to the European Economic Community. I his staff, and to our translators and interpreters. would like the word "Economic" to be added. Gentlemen, the session is closed. THE CHAIRMAN. - The correction has been The meeting rose at 4.50 p.m.

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