10 DOWNING STREET Private and Confidential. 16th January, 1981 When you came to see the Prime Minister last evening, I think that we all agreed that it was likely to be unhelpful to our Party if differences of view within the Party about our Policy towards the Community were to be ventilated in public, particularly so far as the two particular groupings are concerned. Just after our meeting, I was handed a copy of your letter dated December 1980, and I must say that I do think that that letter is likely to stir rather than to diminish controversy. Perhaps we could have a word about this. Ian Gow Hugh Dykes, Esq., M.P. b.c.c. The Rt. Hon. Michael Jopling, M.P. The Rt. Hon. Lord Thorneycroft, CH. Deputy Otalrman: Patrons. At Hon Margaret Thatcher MP Miss Beryl Goldsmith Rt Hon Harold Macmillan OM FRS Vke-Olairmen: Rt Hon Lord Home of the Hirsel KT MIDavid Hunt MBE MP Rt Hon Lord Duncan-Sandys CH Mr Peter Price MEP Lord Chelwood MC DL ONSE Mr Frank Richardson Rt Hon Lord Carrington KCMG MC Rt Hon Geoffrey Rippon QC MP Hon. Treasurer' GROUP FOR EUROPEMr Peter Smith President: Rt Hon Edward Heath MBE MP 1 Registend Ofrim: Chairinan: Mr Hugh Dykes MP Europe House Club Vice-Presidents: I A W'Wteliall Phm Sir Gilbert Longden MBE Mr James Scott-Hopkins MEP London SW1A 2HA Mr Jim Spicer MEF' MP Tel: 01-839 6622 December, 1980 Dear Member, You may have seen in the press that a number of Conservative MPs have recently formed an "EEC Reform" group with the following aims: 'ABOLITION OF THE CAP (Nate: This would, of course, involve the British taxpayers finding about £1,500 million per year to restore the deficiency payments system to our farmers.) REFORMING THE EEC BUDGET SO THAT CONTRIBUTIONS MATCH PAYMENTS BACK RESTORING CERTAIN TRADE POWERS AND ANTI-DUMPING MEASURES TO THE NATION STATE - RESTORING TO NATIONAL PARLIAMENTS POWER OVER THE INSTITUTIONS OF THE COMMUNITY The founders of the group insist that they are not in favour of UK withdrawal from the Community, although there are a good nvmber of enthusiastic "withdrawers" among the 40-odd Members. However, the objectives above are definitely and completely incompatible with membership and with adherence to thr. Treat!_es, as tae Government has already made clear. The CGE believes that the Community needs a good number of reforms and improvements, but the above demands would, of course, wreck the Community. Please peruse the attached list of Members of the Group, as you may reside in the constituency of one of them, We would be glad if you felt inclined to contact the Member concerned to express- your misgivings, for this Group can only cause disunity within our Party, at the very moment when the Prime Minister has established a new and strong position for the United Kingdom in the Community. More and more we see that the "anti's" (of whichever party) are wrongly blaming the EEC for our own grave economic problems, on which they should urgently beconcentrating rather than using the 'Common Market' as the scapegoat for all that is wrong. Yours sincerely, HUGH DYKES Chairman RI GISTI.R1ID IN ENGLAND No 551817 AS THE EUROPEAN MOVEMENT (BRITISH COUNCIL) LIMITED BY GUARANTEE CONSERVATIVE EUROPEAN REFORM GROUP (Membership at 12/12/80) Member of Parliament Constituency Jonathan Aitken-. Thanet East *Richard Alexander Newark J--- *JackAkspinwall Kingswooi Anthony Beaumont-Dark.- Selly Oak (Birmingham) Sir Ronald Bell Beaconsfield *David Bevan Yardley (Birmingham) John Bladkburn Dudley West Richard Body Holland with Boston *Sir Nicholas Bonsor, Bt Nantwich *Michael Brown . Brigg & Scunthorpe *John 'Browne Winchester John Butcher Coventry South-West *John-Carlisle Luton West - The Hon..Alan Clark PlymOuth, Sutton *Geoffrey Dickens - Huddersfield West Den Dover Chorley *Robert-Dunn Dartford John Farr Harborough Peter Fry Wellingborough .*Peter Griffiths Portsmouth North Warren Hawksley The Wrekin Charles Irving Cheltenham Toby Jessel Twickenham Mrs. Jill Knight, MBE Edgbaston (Birmingham) Michael Latham Melton *Peter Lloyd Fareham Albert McQuarrie Aberdeenshire East *Tony Marlow Northampton North Roger Moate Faversham *Christopher Murphy Welwyn & Hatfield Gerry Neale Cornwall North *Matthew Parris Derbyshire West JPmPs Pawsey Rugby *Larry Porter Bebington & Ellesmer3 Port Harvey Proctor Basildon . *Richard Shepherd Aldridge Brownhills Tony Speller Devon North Keith Stainton Sudbury & Woodbridge Robert Taylor Croydon North-West Edward Taylor Southend East *Neil Thorne, OBE., TD Ilford South John Townend Bridlington *Bill Walker Perth & Perthshire East Gary Waller Brighouse & Spenborough Nicholas Winterton Macclesfield New Members elected May 1979 Letters should be addressed to Members of Parliament at HOUSE OF COMMONS, LONDON, SW1A OAA PLEASE READ OVERLEAF.../ . _ — EXTRACT FROM HANSARD -- - WRITTEN ANSWERS 1 7 DECEMBER 1980 Conservative European As regards the third aim, independent Reform Group action by membef States on dumping or Mr. Teddy Taylor asked the I.,ord other unfair trade practices- by 'third Privy Seal if he will make a statement, countries :would be incompatible with '- pursuant to his reply to the hon. Member chapter 3 of the Treaty of Rome and in for Flint, West (Sir A. Meyer) on 3 particular with article 113 which ex- December, Official Report, 3 December, plicitly states that c. 395, explainMg how the aims of the "...the common commercial polic) shall be based on uniform principles, particularly in Conservative European Reform Group regard to . measures to protect trade suc) are incompatible with continued mem- as those to be taken in case of dumping . .". bership of _ the European Economic Since the European Community is a, full Community. customs union within which goods Sir Ian Gilmour [pursuant to the Min- circulate freely, anti-dumping action has ister of State's reply, 9 December 1980, to be on a Community basis if it is to be c. 5431: The first announced aim of the effeetive. So the restoration to member European Reform Group is the ending States of the -right to take unilateral of the common agricultural policy. This action on unfair trading practices includ- aim is incompatible with our member- ing dumping is inconsistent - with our ship of the European Community. The obligations under the common com- Treaty of Rome in articles 38 to 46 ex- mercial policy and would weaken the plicitly requires that there should be a effectiveness of the Community's action common agricultural policy. -Article 39, as a whole. in particular, states what the objectives The group's fourth aim is- the:re- of the CAP shall be, - , _ assertion of the power of national parlia- to increase agricultural productivity . to ments over the European Community ensure a 'fair standard of living for the Agri- institutions. The powers of the European cultural Community... to stabilise markets... Community institutions are set out in the - to assure the availability of supplies . to treaties to which the United Kingdom ensure that the supplies reach consumers at reasonable prices". acceded under the Treaty of Accession. The reassertion of the power of national The Government, like all British Govern- Parliaments over the institutions of the ments since our membership, support the Community in such a way as to interfere objectives of the CAP as set out in this with the powers conferred by the Article. They are similar to the objectives treaties on those institutions would be of British agricultural policy before our incompatible with the obligations we membership of the Community. The accepted when we ratified the Treaty of Government are not, however, satisfied with the present workings of the policy. Accession. In practice, however, the vast Our view of the need for far-reaching majority of important decisions in the European Community are taken by the reforms in its operation is shared increas- ingly by other member States, some of Council on the basis of consensus. Ministers are as accountable to Parlia- - vhic)- have alreaay put fa-ward ideas of their own. This is quite possible within ment for their Community activities as the framework of the Treaty. Rather they are for any other activities. The than abolition of the CAP, it is effective scrutiny procedures of this House pro- reform of the policy which is needed_ vide for examination of draft Com- The commitment to restructuring of the munity legislation before it is approved Community budget achieved in the 30 by the Council of - Ministers. The May agreement provides a unique oppor- Government have undertaken to the tunity to bring this about. House not to give approval in the On the group's second aim, reform Council of Ministers to a proposal which of the system of financing the budget, has been recommended for a debate by the Government agree that we must the House before that debate has taken work for a better balance in European place, save in exceptional circumstances Community net budget contributions. or where the Scrutiny Committee agrees that United Kingdom consent in Council We have already achieved a great deal in this area. We shall be seeking further need not be withheld. progress during the process of examina- tion of the Community bluigrt whir‘h will take place, in accordance with the agree- ment of 30 May, during 19R1. In the agreement, our partners have accepted thet need to prevent the recurrence of unacceptable situations for any in- dividual member State and to review the whole structure of Community expendi- ture policies. 10 DOWNING STREET .y Ictter 11,1 v, t, ''111.(" t-A• . t 'e 1 , t; a. F. c_ g2 r From: Hugh Dykes, MP I was wondering if it would be possible for David Hunt and me,representing the Cons. Group for Europe,to come and see the PM briefly in the next few weeks.