European Community is published on behalf of the Commission of Fly Europe pages 3-5 the European Communities. Airbus lndustrie overtakes Boeing Office: 20 Kensington Palace Gardens, London W8 4QQ Tel. 01-727 8090 British apathy towards pages 6-9 Cardiff Office: 4 Cathedral Road, the EEC Cardiff CF! 9SG Lord Thomson of Monifieth, PC, Tel. (0222) 371631 asks why the Community has been Edinburgh Office: 7 Alva Street, allowed to become the scapegoat Edinburgh EH2 4PH of our own economic failures Tel. (031) 225 2058 Dublin Office: 29 Merrion Square, UNCT AD V and after pages I 0-12 Dublin 2. Tel. 76 03 53 Towards a new international Intended to give a concise view of economic order by Malcolm current Community affairs and Subhan stimulate discussion on European problems, it does not necessarily reflect the opinions of the Grants and loans page 13 Community institutions or of its £2,846m EEC finance to UK editor. Unsigned articles may be quoted or reprinted without payment if their source is Just published pages 14-15 acknowledged. Rights in singed Brief reviews of new books articles should be negotiated with their authors. In either case, the editor would be glad to receive the Summit page 16 publication. Statement by Roy Jenkins after Printed by Edwin Snell printers, the Tokyo Summit meeting Yeovil, England European Community also appears in the following editions: JO/ours d'Europe, 61 rue des Belles Cover photo: The Airbus A 300 Feuilles, 75782 Paris Cedex 16. Tel. 553 5326 Comunita Europea, Via Poli 29, 00187 Rome. Tel. 68 97 22 Europa Gammel Torv 4, Post Box 144, 1004 Kobenhavn K. Tel.144140/145512. EG Magazin, Zitelmannstrasse 22, 53 Bonn Tel. 23 80 41 Europese Gemeenschap, Lange Voorhout 29, The Hague. Tel. 070-46 9 3 26 Comunidad Europea, 200 rue de la Loi, 1049 Brussels. Tel. 35 00 40 Europaiki Koinotis,2 Yassilissis Safi.as, T.K. 1602, Athina 134. Tel. 743 982 Avrupa Toplulugu, Bogaz Sokak The Community in September No. 13, Kavaklidere-Ankara. Tel. 27 6145-2761 46 Sept. 17 Finance Council European Community, 2100 M Sept. 17 /18 Agriculture Council Street, NW, Washington DC 20037 Sept. 18 Foreign Affairs Council Tel. 872 8350 Airbus Industrie overtakes Boeing by Christopher Layton, European Commission director responsible for aerospace The success of Airbus Industrie's A300 in the European airframe industry having aircraft offers a significant opportunity to approximately 15 per cent of the world the European aerospace industry. At a market*. time when one can only contemplate It should be remembered that the ruefully the performance of so many success of the Airbus is comparatively industrial sectors in Europe there is one recent - until 1978 sales were quite slow. whose performance is beginning to give The first glimpse of a breakthrough came g~nuine cause for optimism - the with the order from Eastern Airlines in aerospace industry. It is no secret that the the US A. At the same time it was military side has been doing well for some primarily a Franco-German project, the time but more importantly the civil side interests of most of the UK industry shows signs of increasing in health and lying elsewhere. Rolls Royce declined to vigour. The purpose of this article is to invest in putting the RB211 on the Airbus show that its success is due to and a and directed its efforts into having a new consequence of collaboration on a version of the RB211 engine - the European basis; however it is more RB21 l-535 - launched to fit the smaller, important to have understood that such narrow-bodied Boeing 757. The British success has been hard won. In a sense it is airframe manufacturers contemplated only a beginning and if the European putting all their energies into a industry wants to become a genuine force collaboration with a US manufacturer. on the world market it has to build on However, in June 1978, a series of what it has already achieved by taking decisions settled the basic orientation of some important decisions in the near the manufacturers, at least for one area of future. the market. Airbus lndustrie decided to For a long time the European civil launch the A3 IO, a smaller, i.e. 200 plus, aircraft sector was in effect in decline. version of the A300. The UK government When the Commission published a set of decided to allow British Aerospace to proposals for the aeronautical sector in join the Airbus consortium and to allow 1975, it noted that the European share of Rolls Royce to build the RB21 l-535 . the world civil market had declined to 7. 9 Finally British Airways decided to order per cent. Since then the A300 Airbus has the Boeing 757 with the RB2 l l-535 begun to achieve a degree of success. In engines. June this year Airbus lndustrie was able to The net effect of these decisions has announce that orders and options for been on the one hand to ensure, by both the 250 plus seater A300 and the 200 uniting the interests of the main European plus seater A3 l O amounted to over 350 airframe manufacturers, the success of the aircraft. Various forecasts predict that the current A300 project, and on the other present versions of the Airbus will have hand to oppose the interests of Rolls sold between 800 and 1,000 aircraft by Royce to those of the airframe sector. 1990. This will be an unprecedented Apart from British Aerospace joining the success for a European civil jet transport. Airbus consortium, and However even that success will only result *Estimated by Merrill Lynch. European Community August/ 3 • A310 1990 are those for a narrow-bodied 160 D A300 plus seater and a narrow bodied 120 plus seater. These are two areas in which European manufacturers have had some success in the past and can reasonably be expected to have some success in the future provided they choose collaborative projects done within the framework of Airbus Industrie. However, when one comes to examine the potential projects, certain problems for the European industry become apparent. First, on the 160 plus seater, Boeing already has a project - the Boeing 757 ordered by Eastern Airlines and British Airways - which it has announced it will modify to meet head on any competition from a European project. The 8757 is being offered initially with Rolls Royce engines and Rolls Royce would naturally like to see it succeed. Moreover it is not unlikely that a European 150 plus seater would be based upon the SNECMA-GE CFM 56 engine, for which Rolls Royce has no competitor. Rolls Royce might well are also associated, the are consider their interest therefore to run believed to have accepted in principle the counter to any European project in this idea of participation, and most national area. European airlines have become customers Secondly, on the 120 plus seat prospect - Lufthansa, Air , Alitalia, Iberia, Fokker have been advocating for some , etc., as well as several charter and time a project called the F29 or F28 Super private lines like Laker, but not - for the as a logical progression to their F27 and present - British Airways. Moreover in F28. Fokker would prefer however that joining the consortium the various even on a collaborative project they manufacturers have agreed that future should remain a separate entity from civil projects should be done within the Airbus lndustrie. Although this is a same framework. This last point is vital natural objective, it runs counter to the because to become a real competitor of aims of a united and forceful European Boeing or Douglas it will be necessary to industry. Furthermore they have been have a family of aeroplanes, with offended by the re-launching in 1978 by common marketing and common spares the UK Labour government of the HS and support facilities. At the same time (now BA) 146, a project which they regard the commercial and political pressure that as competitive with their F28 and likely to can be used to support the sales of the injure the prospects of an F29. Fokker has industry when their interests are united by therefore been talking with third party a common project is greater than the sum countries with a view to a possible of its parts. collaboration, and this is clearly harmful However it is precisely in this area of to the prospects of a joint European future projects that the problems lie. project. Most commentators agree that apart from One of the dangers inherent in the the wide-bodied 220 seater, for which the present situation as far as the European Airbus A310 and the Boeing 767 will be in industry is concerned is the actual success contention, two of the most important of the Airbus. To meet demand Airbus market slots to be filled between now and lndustrie is having to increase productior

4 European Community August/September 1979 from 2 to about 8 aircraft per month. 811 ), perhaps at the expense of projects Whilst this is good for employment and such as the 160 plus seater and the 120 the equipment suppliers and it enables, at plus seater. last, European manufactureres to obtain In the long term however it is only by pricing and productivity levels on the basis having a range of projects, as Boeing does, of USA-length production runs, it also that the European industry will be means that much energy and time has sufficiently cushioned against the swings to be spent on ensuring the success of the of the market. One single project is too existing products (the 82, 84 and 310) and dangerous. studying future derivatives (the 89 and

B 757

As so often in the past what is now one or more follow-up projects within the needed is political will and clarity of framework of Airbus Industrie. The purpose. There are some hopeful signs. market will decide which project should Rolls Royce for example has at last signed come first and when, but the problems of an agreement with Airbus Industrie to organisation and finance for anew cover the cost of designing and testing the project should be studied immediately . . installation of the R8211 on the A300. Europe has a fine opportunity to build Japan has indicated a desire to collaborate up a key sector and this is an opportunity with a united Europe industry on a 120 which should not be lost. plus seat project. What then is needed is

European Community August/September 1979 5 Lord Thomson of Monifieth, PC, former European Commissioner, asks why the Community has been allowed to become the scapegoat of our own economic failures.

It is said that the British people have understand its policies, but because it become indifferent to the European dislikes and disagrees with them. Community. The level of poll at the first ls it the same with the European European General Election in June Community? Is the reason for the apathy appears to bear this out. Is it true? If it is and hostility in Britain that the public now true - why is it so? Is it a failure of understands only too well what the communication? In this ASLIB lecture* I Community is about and simply doesn't want to try to answer these questions like it? It has been my general experience as a I do not believe that dislike of working politician that when things go Community policies was a main reason wrong it is almost a reflex action to make for the low poll. If that had been the case communications the scapegoat. When a there would have been a rush to vote for government goes through an unpopular the many Labour candidates who made phase it is said that it must be because it is no secret of their hostility towards the failing to communicate the realities of the Community and all its works. And that problems and the excellence of the certainly did not happen . government's proposals to deal with them It is true that one reason for the to the general public. When a government negative state of public opinion in Britain gets into that mood, it has equally about the Community is a growing invariably been my experience that it is awareness that Britain, as one of the unpopular not because the public fails to poorer countries of the Community, is beginning to become the biggest net contributor to the budget. But this British obsession - that we have become the poor man of Europe being exploited by cleverer Continentals - besides being sadly lacking in pride, itself reflects the se rious distortions of the Community's image that have been allowed to grow up in Britain. My purpose is to examine why the communication of a balanced picture of the Community should be so difficult in Britain, rather than to rehearse once again the political pros and cons of British membership . The iss ue is why has the Community been allowed co become the scapegoat for our own economic failures? *Association of Specialist libraries and Information Bureaux, 13 June 1979.

6 European Community August/September 1979 Could a more effective Community turkey - if I have strangled that mythical communications policy have prevented turkey once, I have done it a dozen times this - or at least mitigated it? and yet it still keeps flapping its wings! I believe that the main fault lies in Of course, there is no smoke without Britain, not in Brussels, that there has fire . The very openness of Community been a serious abdication of political government provides a fertile seed-bed for leadership over Community issues within myths to grow. The bright idea of some the . But there are several Commission back room boy is floated as a obstacles to an effective Community trial balloon without his departmental information policy that belong to Brussels chiefs knowing in advance. Legislative and affect the Community as a whole. proposals which would be discussed behind closed doors in Whitehall are aired in a network of consultative groups, and Obstacles to effective even supposedly secret Commission information policy debates tend to be reported blow by blow. It would be healthy if only the public The first is the simple fact that the European Community is a complicated, could be made to appreciate the difference unprecedented multi-national institution. and the long time scale between an idea, a It has been said of the elephant that Commission proposal and a Council though it is hard to describe, you can decision. always recognise one when you see it. For Most daft ideas gradually disappear, the professional communicator the like the smile on the face of Lewis Community is worse than the elephant Carroll's Cheshire cat, before they since it is not only hard to describe, but become official Commission proposals. often equally hard to comprehend when But the Commission machinery is cumbersome, and sometimes the you watch it at work. Both for the Commissioners sitting in their 13-storey information officials of the Community, eyrie preoccupied with major issues like and for the journalists seeking to freezing CAP prices or initiating an encapsulate the late-night convolutions of energy policy, nod when it comes to a the Agricultural Ministers in a snappy proposal to harmonise the noise level of story, the Community is a formidable, forbidding technical problem in the art of motor mowers from Greenland to Sicily. communications. But the Community, like many a Only Britain questions human institution, is often its own worst enemy. It has an infinite capacity for membership making the simple complicated and since There are also problems special to Britain it does this with an openness unknown to - and to some extent to Denmark. There national governments and at infinite is no doubt that apart from Denmark the length, there is maximum opportunity for level of commitment to the Community is letting cats (imaginary or otherwise) out lowest in the United Kingdom. It is not of bags, drawing shoals of red herring that on the mainland there is a starry-eyed across the Community scene and setting enthusiasm for the Community. They the maddest of March hares running in all simply tend to take the Community for directions, without a hope of harrassed granted, part of the general framework Community information officials ever of government like their national admini­ being able to catch up with them. The strations, necessary, useful and fallible. myths that grow up are myriad and hydra­ It is only in Britain (and in Denmark) headed. No sooner is one slain than that the permanence of Community another takes its place. Euro-beer, the membership remains to be questioned. extinction of the English apple, the Why? ls it primarily a problem of interference with the sex life of the communications? Could it be changed English hop, the abolition of the if only the Community information traditional uneviscerated Christmas services were to have more

European Community August/September 1979 7 money to spend on publicising the Opposition in those days to play John Community or to operate more Bull at the despatch box at the expense of effectively? practical re,ults in the ongoing Brussels I do not believe this is the problem. No negotiations. doubt the estimable Eurocrats in the This attitude did not arise from any London information office of the conviction that Britain had made an error Community would welcome a bigger in remaining in the Community at the budget, and no doubt they would be the time of the 1975 referendum, that some first to admit that they have their share of big change had taken place that justified a sins of omission and commission. change of position. That would have been But the problem lies not in the intellectually respectable. Community's outpost in London, but The ambivalent attitude taken up by the right at the heart of British politics in Labour Government owed little to any Westminster. The Commission's intellectual doubts about membership of information budget for the United the Community and much to an Kingdom is tiny compared to the annual ideological division within the Labour budget of the Central Office of Party, and indeed within the Labour Information without counting the cost of Cabinet. Patching up party unity was the many departmental information considered a great deal more important machines. If public expenditure on matter than the historic issues associated information about Britain's future in the with British membership of the Community is to make a contribution, the Community. major role must be played by the national Party unity, what si ns are committed in state. thy name! In the name of party unity the Labour's ambivalence Government refused to commit the party But for the last five years the Labour to the plan for a fairer electoral system Government has given no priority to which it itself supported. The emphasising the importance of making a Conservative leadership took an even success of British membership of the more negative attitude to Liberal Community and of the Community's role proposals for proportional representation. in world affairs. It is government that As a result Britain has now contributed a sets the climate of public opinion. It is grotesquely distorted delegation to the what Ministers say in public and in private European Parliament. In the name of about the European Community that sets Party unity and with Conservative the tone of national debate, that acquiesence, the information services of determines what the senior civil servants the Com unity in Britain were discouraged and departmental information officers from pulling out the stops in a colourful say, that influences the attitudes of the and imaginative public relations campaign leader-writers and the TV pundits. For to excite public interest in the European five years, the Labour Government, in elections. Instead the large budget of one that most typical phrase of the times, million was spent largely on the dullest, adopted a low profile over the European most neutral of 'official public service' Community. And to a large extent the advertising. And even that was in the post-Heath Conservative opposition event limited in its operation by the tended to lie low, too. They refused to risk national General Election. giving any electoral ground to their The truth is that the task of persuading opponents. With no leadership about the ancient European nations to pool limited historic advantages of Community but important aspects of their sovereignty membership, the way was clear for the in a single Community is an immensely grousers and the grumblers to engage in a difficult one. It involves painful changes steady drip, drip, drip of denigration. It in familiar and cherished national ways of did you more good in the leadership conducting both public and private stakes in both Government and business. It requires a patient search for

8 European Community August/September 1979 necessarily complicated compromises, and such a novel and non-traditional concept a willingness to explain to the layman why as a multi-national Community - is easy these often irritating alterations in our to erode and much harder to recreate. national procedures are a necessary means Over the recent years of reluctant and to the achievement of great long term lukewarm Europeanism in Britain our goals - the creation of a Continental­ original large stock of goodwill amongst scale economy and a political unity that our partners has been steadily run down. are our best guarantees of future peace They have become unconvinced of our and prosperity. The ordinary citizen desire to share in the leadership of Europe earning his or her daily living cannot be as we have done in the past, and indeed of expected to follow the technical details of our will and capacity to reverse our deep­ Green Pounds and European Currency seated relative economic decline. And yet units. It requires political conviction and the goodwill of our partners and their vision, and political will of a high order if readiness to make concessions is essential the nations of the Community are steadily to solving the problem of Britain's to build a more united Europe. inequitable budget contributions and The present state of public opinion in restoring the belief of the British people in Britain about the Community is not a the Community. failure of information policy, but of political leadership. It was dramatically Bi-partisan approach underlined by the failure of both the Making a success of Britain in the Labour and Conservative leaders to Community ought to be a bi-partisan - campaign in the European General indeed a tri-partisan - matter. It is a Election on anything remotely like their tantalising thought that if Labour had personal commitment in the national won the 1970 election a Labour General Election. The Liberal leadership Government would have taken Britain with heroic consistency despite the into the Community with Conservative electoral dice being loaded against them and Liberal support, and the anti­ fought the campaign properly. But it was Europeans of both main parties would little wonder that if the nation's leaders in have been an isolated minority. Many of both the .nain parties refused to take the the problems I am discussing here Euro-poll seriously that the ordinary would never have arisen, and others like voter followed suit. the Community budget would have been simpler to solve. As it is, the new Prospects under the Government will find it will require long, Conservatives patient, steady effort to turn round the The new Government claims it will do present mood about Britain and the things differently. It says it will pursue the Community on both sides of the Channel. European ideal while vigorously fighting There are many legitimate differences Britain's corner over matters like CAP of view between Right, Left and Centre and the budget. We shall see. It is about the best internal policies for the certainly the better way to seek results in Community to pursue. Everyone who Europe. But they have to prove they are believes that Britain's future lies in ready to pursue their European policy membership of an effective Community with more leadership and conviction than will hope that the new Conservative they showed in conducting their election Government will from now on make the campaign. We should not underestimate EEC the centre-piece of our foreign the problems. It is an axiom of policy. Equally, they will hope that the information policy that it cannot new Labour Opposition will not allow its artificially create a climate of opinion. It largely self-inflicted humiliation in the can only inform and reinforce a national European General Election to push mood which is itself the product of much Labour into being a completely anti­ wider and deeper political and social Community party committed to British trends. Public confidence - especially in withdrawal.

European Community August/September 1979 9 Towards a new international economic order by Malcolm Subhan Brussels correspondent of the Economic Times, Bombay A non-event which cost $100 million to generally sy mpathetic to both demands. stage. This was the popular verdict in the The EEC spokesman, the French West on the fifth United Nations Economics Minister, M. Monory, told the Conference on Trade and Development, conference that even in the case of a which met in Manila recently. But it was particularly sensitive sector - textiles - not altogether fair to a conference which the Community was following a policy brought together an estimated 5,000 whose twin objectives are (I) a control delegates from nearly 150 countries. over imports so as to prevent a sudden, For many Western observers the Manila sharp rise as in 1977 and (2) changes in conference was headed for failure even the structure of the industry so as to before it opened simply because it lacked enable trade to develop more a focal point. But the fact is that every harmoniously in the future. UNCT AD conference has had a long, But the EEC also made it clear that it cluttered agenda; where an issue has did not share the priorities of the Group emerged to dominate a conference it is of 77. The fact is that for some time now often due as much to luck as to planning. the Common Market has been offering to But as far as the developing countries were help developing countries deal with the concerned, UNCTAD V did have a central two problems it regards as the most theme. It was one their ministers had crucial to their future development: food selected in February when they had met in and energy. In the Community's view it is the Tanzanian capital of Arusha to plan the growing shortage of food and energy their strategy for Manila. The central in many developing countries which theme of UNCT ADV was to be an action threatens the Third World more than programme for restructuring industry in anything else. the developed countries, in order to bring about the New International Economic Order the Third World has been pressing Compromise on central for since the 1973 oil crisis. issues could cause friction A related issue was to be protectionism. Even so, developed and developing The Group of 77 has watched with countries were able to reach a compromise growing alarm the efforts of the major on both the central issues raised by the industrialized countries, including the Group of 77. The resolution on EEC, to limit imports of so-called protectionism calls on the rich countries 'sensitive' products from the developing to reduce and eventually eliminate countries. In its view protectionism must quantative restrictions on their imports be defeated for two reasons: (I) it is a from the Third World. GATT, the barrier to the expansion of Third World -based body which conducted the exports of manufactured products and (2) recently concluded multi-lateral trade it postpones the need for rich countries to negotiations, is asked to examine any restructure their declining industries. protectionist measures which The industrialized countries were industrialized countries may take against

10 European Community August/September 1979 the exports of developing countries. adjustments so that industries seeking As for restructuring industry in the protection against imports can compete West, the resolution states that structural more effectively against them. adjustment is a constant and global For a number of reasons the phenomenon. The resolution entrusts the implementation of the two resolutions is Trade and Development Board, likely to be a continuing source of friction U NCT A D's main decision-making body, between developed and developing with the task of organizing an annual countries. The latter are bound to find the review of world production and trade. pace at which industrialized countries The purpose of such a review of course reorganize their industries much too slow. would be to help identify the elements or The fact is that in the short run industrial problems most relevant to the attainment reorganization leads to loss of jobs and of (I) optimum overall economic grow.th lower rates of economic growth. and (2) the development and diversification There will also be differences over the of the economies of developing countries. extent of the reorganization. Developing These annual reviews would result in countries take the view that the recommendations of a general nature, industrialized should simply transfer which governments could take into certain manufacturing industries to the consideration when drawing up their Third World, among them entire sections economic programmes. of the textile and clothing industries, the Both resolutions obviously represented footwear industry, the assembly of a compromise. The fact remains, consumer electronics, etc. But for the however, that the governments of the EEC's Commissioner for Industrial industrialized countries have given an Policy, Etienne Davignon, the goal of undertaking to resist protectionist industrial reorganization is to make pressures and, what is perhaps even more industries more competitive, not to close important, to tackle the problem at its them down - a process which is likely roots, by making the necessary structural nevertheless to involve closures.

Community trade with developing countries (Thousand million EUA. 1 EUA = £0.67 approx.) 75,14 • 7093 I 70,02, .. ••••• •••••••; 61.38 ~· , .... 54,98 ~··•• ~· /It ...... I "" I I II 31,93 /

24.45 ••••••• ~9 2 3.4 2 •• 1913 21., ...... 17.78•••••••••• ' ...... I

lmports_from . Exports to 11111111 developing countnes - developing countries

European Community August/September 1979 11 in order to divide the Third World, the The newly industrialized Costa Rican initiative apparently was countries prompted by the fact that the OPEC All industrialized countries accept the countries have done more for Islamic need to help the Third World nations facing economic hardship as a industrialize. But with the rise of the result of the rise in oil prices. However, newly industrialized countries such as pressure from the other developing , Singapore and Brazil, they countries (and a promise of increased are beginning to make a distinction financial aid) led Costa Rica to withdraw among them. The European Community its proposal. wants the NI Cs to undertake structural The growing strains within the Group adjustments also, in the direction of of 77 obviously have implications for the diversification of their industrial future of UNCT AD and the North-South activities. It also wants them to encourage dialogue. Both, it was being suggested in domestic demand and open up their Manila, had outlived their usefulness. But markets to imports. there were no suggestions over what UNCT AD V provided strking should take their place. It is clear, confirmation of what has become very however, from the resolution on evident in the last 5 or 6 years. This is the structural adjustments to industry, that increasingly heterogeneous nature of the developed and developing countries will Third World. The Countries now have to work together if both are to enjoy represented in the Group of 77 include economic growth. semi-industrialized, high-growth economies as well as nomad, subsistence The example of Lome economies. Per capita incomes range Regional arrangements such as the Lome from $50 in the least developed countries Convention are one answer. But the to over $5,000 in the rich, sparsely­ EEC's Commissioner for Development populated oil-exporting countries of the Cooperation, Claude Cheysson, has Middle East. described the Community's relations with The Group of 77 inevitably has found it its associated states as a model for the more and more difficult to maintain its international community. This implies an unity in the face of such extremes of international forum in which the eventual economic development and income. As a extension to all developing countries of result, it has become increasingly rigid in successful regional arrangements can be its attitudes and intolerant of any envisaged. independent initiatives within its ranks. The most obvious forum in which to Not surprisingly, internal dissensions have draw up a global development strategy is increased. During the closing days of the United Nations, of course, acting UNCT ADV the African group threatened through its Economic and Social to stage a walk-out on the grounds that its Committee or even through special interests had been largely neglected, sessions of the General Assembly. This is especially as regards the debt problem. precisely how the strategy for the Third But the most serious dispute within the Development Decade, covering the 1980s, Group of 77, and one which held !JP the is to be decided. Manila conference for three weeks, was Once the broad outlines of the strategy over energy. Costa Rica, backed by a have been agreed on, its implementation number of other Latin American can be entrusted to the various specialized countries, took the view that the group of agencies of the UN, the International high-level experts to be set up under the Monetary Fund and World Bank, GATT draft resolution on interdependence and regional organizations such as the should have competence over questions of Asian Development Bank. This would energy also. reduce UNCTAD's role but the result Although accused the could well be a much more effective industrialized countries of raising the issue organisation.

12 European Community August/September 1979 £2,846m EEC finance to UK Between 1973 and the end of 1978, the fund and by region. various funds and lending agencies of the Some grants and loans are made on a European Community allocated grants national basis and cannot be attributed to and loans to the United Kingdom of more any particular region. This is particularly than £2,846m. This finance is provided true of the Social Fund, which channels mainly to stimulate industrial investment most of its finance through national and improve services like communications organisations like industrial training and water supply, so bringing new jobs to boards or through government agencies the less prosperous regions; to provide like the Manpower Services Commission. training for young people and those The total for grant~ from the European needing to change their job or find a new Coal and Steel Community is not job; to modernise the coal and steel exhaustive. It does not, for instance, industries; and to encourage investment in cover all research projects in these sectors. agriculture and fisheries. The Social Fund figure does not include The global figures are: all the experimental 'pilot projects'. Grants £747,126,000. Payments from the Agricultural Loans £2,099,392,000. Guarantee Fund for operations like Loan allocations, of course, have to be support buying and butter subsidies are repaid, but the loans offered by the also not included in the totals. European Investment Bank (EIB) and by More detailed information on these the European Coal and Steel Community grants and loans is available on request to (ECSC) are at highly competitive rates of the Editor, European Community, interest and often on deferred repayment 20 Kensington Palace Gardens, London terms. The chart below gives details by W84 QQ, stating the region concerned. Grants and loans to the UK: 1973-78 (£) Hydro- Hill Social Regional Agricul. EIB Loans ECSC ECSC carbon farming Region fund fund Fund (£m) Loans Grants Granls Grants North England 3,884,462 63,547,409 .1,688, l 74 )68.05 223 .464.000

Yorkshire & Humberside 153,590 11,427,759 6,773,605 63.26 207,480,000 North West 16, 585,066 37,946,342 3,256,095 118.4 3,520,000 West Midlands 11 ,000 14.400 2,502,213 21,430,000 East Midlands 137, 136 1,095,586 3,403,824 8.4 34,630,000 East Ang li a 3,657,698

Sout h West 120,919 3,992.046 3,108,035 10.0 South East 49,575 1,758 ,519 7.0 3,760,000

Scot land 18,943,190 69,783,896 14,323,758 30D9 55,900,000

Wales 8, 163,780 41,029,381 2,275,296 141 .0 100, 780,000

Northern 37,879,979 39,911,084 11,865,629 21.0

UK General Benefits 197,26 1,375 3,142,078 326.6 279,128,000 National Totals 283,190,000 268,747,903 56,647,846 1169.30 930,092,000 70,000,000 17,000,000 51,540,000

European Community August/September 1979 13 Guide How Europe Works A Common Man's guide to the Common In Europe - one man's view of how Market edited by Hugh Arbuthnott and Europe really works by Basil de Ferranti Geoffrey Edwards (Macmillan for the (Eurosketch, 52 pages, £2.00) Federal Trust, 213 pages, £8.95) The former President of the EEC's An attempt to highlight the Community's Economic and Social Committee basic principles and objectives which are describes the workings of the Committee easily lost sight of in the jungle of detail and chronicles his experiences over the and the jargon used to describe it. It gives two years of his presidency (1976-78). A a short history of the Community, final chapter speculates on the explains the institutions and decision Committee's future development. making processes and the major policy areas. Parliaments The European Parliament and National Politics Parliaments edited by Valentine Herman The Christian Democratic Parties of and Rinus van Schendelen (Saxon House, Western Europe by R. E. M. Irving 304 pages, £9.50) (George Allen & Unwin, 338 pages, £15) This book is based on the papers presented After discussing the pre-war origins of the by fifteen academics at a recent Parties, the au(hor reviews their 'workshop' in Grenoble. It considers spectacular growth in the decade national parliament-European Parliament following 1945, their decline in the 1960s relations from a variety of viewpoints. and revival in the . He analyses the political philosophy of Christian Britain Democracy and discusses what the Britain in Context by John D. Hey Christian Democratic and conservative (Blackwell, 189 pages, £9.50 hardback, political families have in common. £3.95 paperback) An imaginative presentation of key Agriculture economic and social facts and figures. Agricultural implications of EEC The material is divided up into eighty-six Enlargement - Part I: Greece (Agra topics, each presented on two (facing) Europe London, £12.00). pages, one devoted to a pictorial Enlargement of the EEC to include representation of the material, the other Greece, Spain and Portugal is likely to put discussing it and giving the data sources. further strain on the Common The topics are divided into three broad Agricultural Policy and cause a areas: Britain as part of the world, Britain shift in the balance of power in the as an economic aggregate and Britain as a Community towards the Mediterranean society of individuals. countries and away from countries in the north. This report deals with the general economic and agricultural implications of enlargement, taking a detailed look at the agriculture of Greece. 14 European Community August/September 1979 Community Europe Euro managers The Countries of Community Europe - a The New Euromanagers - an geographical survey of contemporary examination of the training and issues development requirements offuture UK by Geoffrey Parker (Macmillan, managers in Europe 211 pages, £4.95) by Judy Lowe (Woodhead-Faulkner, This survey of issues currently affecting Cambridge, 84 pages, £7 .25) the member countries of the Community This book looks at the changes that have is addressed mainly to students of regional taken place in management education and and economic geography, European training in the UK since its entry into the studies (political and economic) and EEC. It concentrates on moves to develop business studies. It takes each country in appropriate European-orientated turn, dealing with topics like energy programmes to enable UK managers to provision, agricultural and industrial function more effectively in Europe. It modernisation, regional development and will be specially helpful to those wanting problems of the environment. to develop European training programmes and potential participants.

Statistic of the month Unemployed in the Nine (1978 averages)

European Community August/September 1979 15 Politics ~ Summit

Statement by Roy Jenkins after the Tokyo Summit meeting

Speaking at a press conference after the similar national commitments within the World Economic Summit held in Tokyo Strasbourg target, and that these should on 28-29 June, Commission President be agreed and declared by the time of the Roy Jenkins underlined four main points. Dublin European Council at the end of First, the Tokyo Summit did face up to November. He did not anticipate any the seriousness of the energy situation. It great difficulty about this. was not in every way an easy meeting. In conclusion, Roy Jenkins expressed Energy, naturally in the circumstances, satisfaction at the central role which the dominated it. There was much less of a Community has played in the preparation general debate than in the previous world and results at Tokyo, more so than at any summit in Bonn, it was more of a previous summit. However, he hoped this negotiating meeting, and it got down to would not lead us to be complacent. At concrete questions and achieved concrete the Energy Council two weeks ago, in commitments. The meeting might not Strasbourg and then last week in Tokyo, have done all it should ideally have done, we worked out our first serious response but it did all that realistically could to the new energy crisis. What counts now have been done. is to monitor and build on that, because Second, and in particular, its major unlike the five years after the shock of achievement was a firm United States 1973, our energy problems will not commitment to a medium term goal. disappear even temporarily in the next five Given the American position as late as the years. We are going to have to live with eve of the summit, this was a significant them and come to terms with them. We advance. have just started, but fairly effectively, to Third, following on from that, this do so. United States commitment and the accompanying Canadian and Japanese undertakings were only possible because of the Community's strong position agreed at the European Council at Strasburg. This shows what the Community can achieve through solidarity and a common position. We should certainly not have achieved the United States undertaking without that. Fourth, the declaration of the Tokyo Summit in no way prejudices the positions of the five Community countries not individually represented (Benelux, Denmark and Ireland). They had all accepted the Strasbourg target, and they are in no way committed beyond that. The next step will be for them to undertake

16 European Community August/September 1979