Britain and EEC Membership 2


Statement by British prime minister Harold Wilson, on the second British application for membership
of the European Economic Community, House of Commons

London, 2 May 1967


With permission, Mr Speaker, I should like to make a statement.

Her Majesty's Govemment have today decided to make an application under Article 237 of the Treaty
of Rome for membership of the European Economic Community and parallel applications for membership
of the European Coal and Steel Community and Euratom.

As the House will recall, I stated on 10 November last that my right hon. Friend the Foreign
Secretary2 and I would embark on `a series of discussions with each of the Heads of Government of
the Six, for the purpose of establishing whether it appears likely that essential British and
Commonwealth interests could be safeguarded if Britain were to accept the Treaty of Rome and join
EEC'.

These discussions took place between January and March. Since then, the Government have carried out
an exhaustive examination of all the issues involved, resulting in the decision I have just
announced.

The reports I have made to the House have made it clear that during the discussions in the Six
capitals we were not engaged in negotiations. But my right hon. Friend and I, and indeed the House,
have reason to be grateful to our hosts for the very frank exchanges which preceded today's
decision.

These exchanges have enabled us to identify the major issues which we, for our part, shall wish to
see settled in the negotiations.

On the Treaty of Rome itself, as I informed the House on 10 November, we have throughout our
discussions taken the view that, as I then said, `. . . the Treaty of Rome is not in itself or
necessarily an impediment. There are anxieties . . . but the Treaty need not be an obstacle if our
problems can be dealt with satisfactorily, whether through adaptations of the arrangements made
under the Treaty or in any qther acceptable manner'.

In short, again to quote, as I said then, `the Government would be prepared - to accept the Treaty
of Rome, subject to the necessary adjustments consequent upon the accession of a new member and
provided that we receive satisfaction on the points about which we see difficulty'. Our discussions
in the capitals of the Six have confirmed the validity of this approach in terms of the practical
working of the Community and its institutions.

It is in this spirit that the Govemment intend to embark on the negotiations which must precede
entry. The House will, I am sure, agree that they ought not to be unnecessarily complicated with
lesser issues, many of which can be best dealt with after entry. It is our hope that the
negotiations will be followed through swiftly, and will relate to the small number of really
important issues which have been identified through our recent discussions, issues on which
agreement should be reached if the House and the country are to be satisfied that essential British
and Commonwealth interests will be safeguarded. This is the spirit in which the original partners
to the Community conducted their own negotiations over 10 years ago. Our recent meeting with our
EF'TA partners has confirmed that they, too, view the matter in the same light. They will, we hope,
also be making their approaches to EEC.

I turn now to the major issues which it must be our purpose to resolve during the negotiations.

First, there are the problems associated with the operation of the common agricultural policy of
the Community - the problems of its potential effects on the cost of living and on the structure
and well-being of British agriculture; problems of the budgetary and balance-of-payments
implications of its system of financing; and certain Commonwealth problems with which I will deal
in a moment.

As I have already made clear publicly, we must be realistic and recognise that the Community's
agricultural policy is an integral part of the Community; we must come to terms with it. But the
Government recognise that this policy would involve far-reaching changes in the structure of
British agrictilture. T'his will require suitable arrangements, including an adequate transitional
period, to enable the necessary adjustments to be made.

It is also the Government's view that the financial arrangements which have been devised to, meet
the requirements of the Community's agricultural policy as it exists today would, if applied to
Britain as they now stand, involve an inequitable sharing of the financial cost and impose on our
balance of payments an additional burden which we šhould not in faimess be asked to carry.

There are also highly important Commonwealth interests, mainly in the field of agriculture, for
which it is our duty to seek safeguards in the negotiations. These include, in particular, the
special problems of New Zealand and of Commonwealth sugar-producing countries, whose needs are a-t
present safeguarded by the Commonwealth Sugar Agreement. We have, as the House knows, been in touch
with all our Commonwealth partners, and will make special arrangements to keep in close
consultation with them, as with our EFl'A partners throughout the negotiations.

Again, as the House knows, capital movements raise questions of special importance. Our discussions
suggest that these can be dealt with by suitable arrangements.

Another important issue is the question of regional policies. Here, too, we had to satisfy
ourselves that we should be able, as members of the Commurůty, to continue to take the necessary
steps to ensure the industrial and social development of those areas of the country with which this
House is always and rightly especially concerned. Our discussions with the Heads of the Governments
of the Community, not least the information we were given about the policies currently being
pursued by member countries, have reassured us on this score.

As I have said, these are major and important issues, but I can tell the House that the Government
believe that there is nothing either in the Treaty of Rome or in the practical working of the
Community which need make them insoluble.

Mr Speaker, I have gone into some detail about certain specific economic issues, on which hon.
Members on both sides of the House are rightly concerned. But the Government's decision has been
motivated by broader considerations of economic policy and still wider arguments to which I will
turn later. On the economic arguments, each hon. .Member will make his own judgement of the effect
on exports and imports, on industrial productivity and investment. Equally every hon. Member must
make his own assessment of the economic consequences of not going into the Community and, in an age
of wider economic groupings, of seeking to achieve and maintain viability outside.

But all of us are aware of the long-term potential for Europe, and, therefore, for Britain, of the
creation of a single market of approaching 300 million people, with all the scope and incentive
which this will provide for British industry, and of the enormous possibilities which an integrated
strategy for technology, on a truly Continental scale, can create. I am glad to say that my right
hon. Friend and I found that.this concept has made a great impact throughout Europe.

But whatever the economic arguments, the House will realise that, as I have repeatedly made clear,
the Government's purpose derives, above all, from our recognition that Europe is now faced with the
opportunity of a great move forward in political unity and lhat we can - and indeed must - play our
full part in it.

We do not see European unity as something narrow or inward-looking. Britain has her own vítal links
through the Commonwealth, and in other ways, with other continents. So have other European
countries. Together we can ensure that Europe plays in world affairs the part which the Europe of
today is not at present playing. For a Europe that fails to put forward its full economic strength
will never have the political influence which I believe it could and should exert within the United
Nations, within the Western Alliance, and as a means for effecting a lasting détente between East
and West; and equally contributing in ever fuller measure to the solution of the world's
North-South problem, to the needs of the developing.world.

It is for all these reasons that we intend to pursue our application for membership with all the
vigour and detetmination at our command.

The House will, of course, wish to debate this decision at the earliest opportunity and
arrangements will be made for a three-day debate next week, when the House will be invited to pass
a motion approving this present statement, which will be presented as a White Paper. We shall seek
to meet the requiretizents of Parliament for the fullest possible information over the coming
weeks. A first paper dealing with agriculture will be available later this week and we shall take
the opportunity of the debate, and of further White Papers which will be laid, to enable
Parliament, and public opinion generally, to form a full, fair and informed judgement of the great
issues involved.

For all of us realise that this is a historic decision which could well determine the future of
Britain, of Europe, and, indeed, of the world, for decades to come.