Prime Minister
Dr Soares, ladies and gentlemen of the press:
If I may add a few words.
First, we were very honoured and happy to receive an official invitation to visit Portugal as serving Prime Minister and I would like to thank Dr Soares, his government and the cities of Lisbon and Oporto for their warm and generous welcome. It has been a great pleasure for me to be here. It has been a most valuable, rewarding, successful and happy visit.
Second, we in Britain understand the difficult economic period which has been experienced by Portugal and we have occasion to know the need for good economic policies, leading sometimes to a certain amount of austerity, of necessity leading to sound budgetary policies—all of these things absolutely vital if you care about the long-term future of a country, because we know it is necessary to get inflation down. We know it is necessary to get budgets on a sound footing, know it is necessary to get balance of payments right, and that the measures taken do work and then form a basis for sustainable growth and a rising standard of living.
Third, during our first round of talks, Dr Soares and I discussed bilateral matters for a considerable time and also European Community matters. I confirm what Dr Soares has said: the alliance lives on and is in good health. We have very few bilateral problems. Those that we did discuss included such things as textile quotas and some of the problems which Portugal is encountering in her negotiations with the Community, with which we may well be able to help. Of course, the budget is one of them, but there are others.
I reiterate our strong and unswerving support for Portugal's admission to the Community on 1 January 1986 and we hope that the negotiations will be completed successfully by September this year.
Fourth, during our second round of talks and on many other occasions, we have discussed vital international matters such as East-West relations, matters in Southern Africa and in Central America, among other things. We have decided to keep in touch about these matters and European matters, both through diplomatic channels and on a personal basis. One of the most valuable things about visits such as these is that one is able in future to get quickly into personal touch when we can both find it valuable to take counsel together and to take one another's opinion to try to solve matters that are very important in the world at large and in Europe. So we shall stay in touch.
Finally, when I arrived, Dr Soares said I should find that the friendship between our two nations was not mere rhetoric, but that it ran deep and that I should feel the depth of that warmth, respect and affection from all I would meet. I have indeed, and I am very grateful for it, and I would like to thank the people of both Lisbon and Oporto for the very warm welcome they have given me. I have asked Dr Soares to pay a return official visit to London and we should very much like it to be this year, if he can manage it out of his busy schedule.
Thank you for a very happy visit. [end p1]
Question
(beginning inaudible) … . of EEC. Do you think that in the future the contribution of each member state shall be based on a percentage gnp, gross national product, instead of the actual and unfair and overcomplicated system of calculation?
Prime Minister
First, I said that Europe must tackle the fundamental problems of which one is the problem of surpluses on the Common Agricultural Policy, which we are now beginning to tackle for the first time, and the second is the way in which the burden of the finances of the Community are borne. I believe that the way in which that burden is borne should be related to ability to pay, on the basis of GDP per head. That is the nature of the system which we are proposing. I hope that we shall be successful in getting through that system, but I must be frank: that system serves to limit the net contribution which a country makes. I would hope and expect that Portugal would be a net beneficiary.
Question (Portuguese television)
Successive executives in this country have struggled quite a lot actually to gain admission into the EEC and the view here in certain sectors is that it will be a solution to all sorts of economic evils. In your own experience, do you think that to join the EEC will be such a boost for Portugal's economy?
Prime Minister
I think it will be beneficial for Portugal from the economic viewpoint and also politically. I always add the political, because I think it is important that the democratic nations are seen to be able to ally together in the European Community. I think economically one gets access to a much bigger market than any of us have ever had before. One secures the advantage of negotiating with other countries as a large trading unit and therefore, by joining together in 12, one has much more influence on world trade than any of us could have separately.
When there are difficulties, such as arise with textiles and with thinks like steel, we negotiate as a Community and therefore have far more power and influence as a Community than as individual countries. [end p2]
Question
(beginning inaudible) … . your advice to an incoming member of the Community?
Prime Minister
Firstly, the Community will give you tremendous opportunities. Opportunities for access to a large market for manufactures, support with regard to agriculture. How far you take advantage of those opPortunities will depend upon the companies of your own country but those opportunities are there to be gained. I think there will be considerable for being a part of a unit like the Community, because we consult together about matters of international impact and we negotiate together, and that is very important indeed.
One final point: you will secure quite a lot of inward investment into Portugal, because you have joined the Community, and Portugal will be regarded as access not only to Portuguese trade and markets, but also access to the markets of the Community as a whole.
Question
You launched throughout your executive, some rather severe economic austerity policies. We are in the midst of one.
By what you saw here and by the discussions you had, do you think that the austerity programme that we have here is yielding fruit, eventually having the same success that it had in the United Kingdom?
Prime Minister
I can only speak for the policies which I have been working, and I can only say that when they are operated consistently and persistently they do work. I believe them to be necessary in the long-term interest of the people of my country and I am interested in the long-term, and they do work. What happens here is a matter for dr soares, but I can say those policies work.
Question (in Portuguese)
Translation (by interpreter)
… . with future accession to the EEC we shall be closer to Europe, but it would also be encouraging if we could establish more close cultural and technological links, not only with Europe itself but with Great Britain. Do you think that we should encourage this technological exchange and cultural exchange between the two countries? [end p3]
Prime Minister
I think the cultural exchange already goes very well through such matters as the British council, but I agree, we would like to have greater cultural exchange for our mutual benefit.
On technological exchange, there is a certain amount of technological cooperation. We are encouraging more. There is a group which visited Portugal recently in connection with nuclear science and nuclear power stations … . we have a number of bilateral things in train. For example, we are interested in telecommunications and digital switching. We are interested, both of us, in greater use of information technology and the new electronics and, of course, that is part of Europe's policy as well. I also was able to hand over to dr soares something like 100 microcomputers for use in schools because we have already started to get children to be used to these things, so we are already carrying out quite a lot of bilateral cooperation between Great Britain and Portugal, and it is very welcome and we would like to enlarge it.
Question (in Portuguese)
You said, sir, that you had decided to maintain contact and that you were going to keep in touch, that you discussed relations between Great Britain and Portugal and also recent developments in southern Africa.
May I ask you, Mr Prime Minister, whether you expect to have some sort of consultation with regard to future developments in africa?
Dr soares answered (translated by interpreter)
President Machel had recently been in London. Mrs. Thatcher had had occasion to mention their conversations in her talks with Samora Machel. Dr Soares himself was able to tell Mrs. Thatcher about what he and his government thought about the situation in Mozambique where, of course, there are many shortages, and he was able to refer to the fact that they sorely need food, particularly milk, and there is a lot of surplus food and surplus milk that could be channelled to Mozambique as special aid, not only in terms of an EEC initiative, but also for humanitarian reasons.
The two Prime ministers also had occasion to discuss matters and issues connected with Angola, southern Africa and Zimbabwe.
Dr soares (translated by interpreter)
The U.K has a vast experience on African matters, as we do ourselves, so we have decided to remain in contact. For the future.
Peter Hitchens (‘Daily Express’, London)
I would like to ask both Prime Ministers, if I may, this question.
Now that relations between Britain and Portugal have obviously been cemented to such a great extent, is it going to be possible for Dr Soares, who has such good relations with the Spanish leader, Gonzales, to assist Britain in the rather strained relations which we have over Gibraltar and what at the moment is a closed border and which will obviously be intolerable as a closed border once both countries are members of the Eureopean Community? [end p4]
Prime Minister
I think, with respect, we have to deal with these matters with spain ourslves in the context of Spain entering the Community. We have wanted for a long time the border between Gibraltar and Spain to be completely open. At the moment it is partially open as you know. It has always been completely open on our side. It is only partially open on the Spanish side, but by the time that Spain comes into the Community it will of course have to be completely open. But I think that we have to deal with it directly, between ourselves and Spain and of course always with Dr Hassan.
Interpreter
Three questions, madam Prime Minister.
The first, from a newspaper in Portugal. You talked about bilateral relations and bilateral questions. What positive measures are you considering applying in relation to these bilateral relations?
Second question: what sort of a follow-up can you envisage with regard to this aid and this lack of food which exists in Mozambique?
Thirdly, can you envisage a Europe which sooner or later will have completely free movement of workers, persons, goods, with just one coin? Can you envisage this as possible in the future?
Prime Minister
With regard to the first question on bilateral relations, where there are outstanding matters they will be pursued by reference to groups of officials. There are a few outstanding matters and the details will be dealt with in that way.
With regard to aid to Mozambique, after President Machel 's visit to London, we did give a certain amount of aid to Mozambique—ten million pounds sterling—and I will have a look when I return into this matter of food.
With regard to free movement of workers, persons and goods, I believe you will be able to get free movement of goods. We have not yet got free movement of services, such as insurance, in the Community. I cannot myself envisage when we will have one common currency, one coin. [end p5]
Question
(interpreter) this question is addressed to the two heads of government.
A moment ago, Mrs. Thatcher, you said that the old British-Portuguese alliance was well and strong and healthy, but this does not seem to be so according to an interview which a former Minister for foreign affairs gave to our broadcasting station. In that interview, he said that the agreement which had been established during the Falkland crisis and which foresaw revitalisation or free blood being given to the old alliance, this had not been maintained after the aid and help which Portugal gave to Great Britain during the Falkland war.
Dr Soares (through interpreter)
Dr Soares did not listen to the interview that you have quoted. I am not quite sure what was said or what was not said because I did not hear it, but I think you are at the present moment, sir, witnessing a revitalization of the old alliance. The visit of the British Prime Minister to our country, the fact that she has asked me to visit her in London this year, 1984 the help and support that Great Britain has given in our wish to accede to the EEC on the date that we ourselves were considering and wishing for the assurances of more investment and technical aid. I think all these are proof that the alliance is very much alive.
Prime Minister
I fully endorse what Dr Soares had said. I am delighted with my visit. I hope he will be equally delighted with his when he comes to London.