London, 24 June 1971
When Mr Anthony and Mr Rippon met last Friday morning1 it was apparent that there was some misunderstanding about the exact terms of the understanding we have with the Community about provision for measures to avoid disruption of trade in agricultural commodities with third countries during the transitional period.
It may now be useful if I let you have the precise terms of our understanding. In the negotiations in Brussels on 11–12 May, Mr Rippon made the following statement, which followed detailed exchanges with the Community:–
‘ As regards trade with third countries, it is our understanding that the Community recognises that there could be actual cases, particularly where imports into the United Kingdom are at present regulated by quantitative arrangements, but would become subject to a levy system on British accession, where significant volumes of trade with third countries were in serious difficulties or were in imminent danger of being so. It is our understanding that in such cases, in accordance with articles 39 and 110 of the Treaty of Rome, it would be the intention of the enlarged Community to take effective measures, which would vary with the circumstances of the commodity, the degree of risk, the market situation, etc, within the framework of the mechanisms of the Common Agricultural Policy and through the appropriate institutions and procedures of the enlarged Community. The means and extent of such action would be decided upon taking into account inter alia the current and prospective conditions and outlets on world markets and in the markets of the enlarged Community and the effects on the third countries concerned of sudden and significant changes in their trade and also after taking account of any relevant international commodity agreements’.
It was on the basis of this understanding that we were able to accede to the Community’s proposals for agricultural transition. This was done at the Ministerial meeting on 12 May when the Community agreed that the examination of specific cases would be undertaken by the institutions of the enlarged Community in the light of all the relevant factors; and that such measures as may need to be taken by the Community institutions during the transitional period with a view to finding solution to problems which might arise in certain specific cases in the field of trade, would be taken in accordance with the principles, and within the framework, of the Common Agricultural Policy.
The Community drew attention to their expectation expressed at a previous meeting, that, so far as could be foreseen at present, the actual cases where problems might arise would be confined to butter, sugar, bacon and certain fruits and vegetables. Mr Anthony will recall that Mr Rippon pointed out that nonetheless our understanding with the Community quoted above is not limited to any particular commodities.
Mr Rippon would be most grateful if you could arrange for this to be passed to Mr Anthony.
- 1 Document 285.
[NAA: A1838, 727/4/2 PART 17]