277

CABLEGRAM, O’NEILL TO FOREIGN AND COMMONWEALTH OFFICE

Brussels, 22 April 1971

267. Confidential

Enlargement Negotiations, Meeting of Deputies, 21–22 April Commonwealth Briefing

1. I said that this had been a short meeting at which only 2 subjects, agricultural transitional arrangements and Euratom were raised, both by the UK delegation.

Agricultural Transitional Arrangements

2. We had made a lengthy statement in reply to the Community’s two statements on transitional measures at the deputies meetings on 9 March and 6 April […]

3. While the Community approach differed from ours, in many areas there was now broad agreement and in others agreement was also in sight. But some difficulties remained as regards the pace of transition, some of the mechanics of transition and the method of establishing Community preference. In our view, the essential purpose of transitional arrangements was to enable necessary changes to be made in an orderly way without undue disruption of production, marketing or consumption in the enlarged Community and in world trade generally.

4. There were a limited number of important practical problems for the UK, and if these could be solved, it would be easier for us to consider the Community’s approach to agricultural transition generally. The main problems were:

(a) The orderly phasing out of third country supplies of butter, cheese, bacon and sugar to the UK (the problems of New Zealand dairy products and Commonwealth sugar were, of course, separate issues).

(b) Provision for speedy and effective corrective action to deal with any dislocation to Community markets or third country trade during the transitional period.

(c) A full 5 year period with 6 steps for our adjustment to the Community’s agricultural prices: and

(d) Better arrangements for horticultural products and for agricultural tariffs generally.

5. We hoped to be able to make progress towards settlement of the main aspects of agricultural transition at the ministerial meeting on 11 May. But further work would have to be done in the meantime, and we asked the Community to consider rapidly the best procedure for this. 1 […]

1 This was the last occasion when the British sought to reassure Commonwealth governments that they would be seeking a transitional period for agricultural items covered by the CAP. From this point onwards they quickly began to review their position, due to the insistence of the Six that Britain should adhere to the CAP immediately upon accession to the EEC. On 3 May, the Ministerial Committee on the Approach to Europe considered its tactics for the forthcoming ministerial meeting in the negotiations of 11–12 May which Rippon would be attending. The committee decided ‘that we should seek to reach a compromise agreement with the Community on 11–12 May on the question of transitional arrangements for agriculture. This would involve us in granting the full margin of Community preference on our agricultural imports from other member countries immediately we joined the EEC, in return for concessions by the Community on the length of the period for our adaptation to their price levels and on arrangements for horticulture and for the treatment of certain agricultural exports to this country from third countries’ (UKNA: CAB 134/3357, minutes, Ministerial Committee on the Approach to Europe, AE(71), 4th meeting, 3 May 1971). This decision was conveyed to the Cabinet the following day, and duly endorsed (UKNA: CAB 128/49 CM(71 ), 24th meeting, 6 May 1971 ). At no stage were any dissenting voices raised, nor indeed was any awareness recorded that this represented a breach of assurances made to Commonwealth countries like Australia. The decision was not conveyed to any Commonwealth government until after it had been agreed with the Six at the 12 May meeting (Document 278). It was only when Anthony visited Europe the following month that the full implications of this new position were explained to him (by the Europeans). See Document 280.

[UKNA: FCO 30/1055]