Introduction
1. End of British Presidency a good moment to take stock and look at progress we are making in the Community, and to look ahead at future prospects. Do so against background of a Government commitment to Community membership which is as firm as ever.
The Mandate
2. Key issue during British Presidency was the budget problem. Laid down in the 30 May 1980 agreement that decisions should be taken on the restructuring of Community policies for 1982 to provide a lasting solution to our problem. Disappointing, but not entirely surprising, that we were unable to achieve this before the end of the year—though not through want of trying—but I had useful discussions with my colleagues at the European Council and we managed to move things along a good deal. Foreign Ministers meeting again on 14/15 January under Belgian Presidency; we are determined to get an outcome which will be good for Britain and good for the Community. No doubt in my mind that early agreement vital for successful future development of Community. [end p1]
Other Community issues
3. Some disappointments in other areas where we were pushing hard for progress: eg Fisheries, completion of Common Market (especially insurance and air transport). Shows that Presidency has no magic wand for achieving progress. But not discouraged: fact is that solid progress was made in identifying and clarifying outstanding difficulties on all these issues. We shall not let up on them; and will now do our best to get full agreement under a succeeding Presidency. Nor has Community stagnated in absence of decisions on these questions. Decisions were taken on a wide variety of matters during British Presidency: some seventy new measures in fields which, though less headline-making, are no less important in terms of effect on ordinary people. Examples: important decisions on—environmental pollution and public safety; on research and development programmes to increase industrial competitiveness; on co-operation on energy matters; on social security benefits and help for the disabled. Also useful progress on increasing EC's authority on the world scene, through, e.g., development of its trade and aid policies, and improvements in the system of foreign policy co-ordination. [end p2]
The UK and EC Membership
4. British Presidency brought home once again what our group of powerful industrial nations can achieve by co-operating; and how much more notice rest of world takes of us if we speak and act together, for instance at Ottawa, Cancun. Against background of increasing world economic problems, as well as increasingly uncertain political scene, more than ever convinced that EC membership a priceless asset to UK. No need with this audience to repeat the detailed figures for, e.g., proportion of our trade now done with EC (43%; in 1980); or for increase in US/Japanese investment here since we joined—though might refer to new paper on this subject published last week by ELEC (European League for Economic Co-operation) showing that in 1980 UK got nearly 60%; of all new US manufacturing investment in EC, or over 30%; of such investment worldwide. Nor do I need to draw attention to benefits we get (particularly our most disadvantaged regions) from EC policies (eg £136m from Regional Fund in 1980, £140m allocations from Social Fund for 1981). But would like to reiterate what I said in my address to European Parliament in Strasbourg last month, about importance of the Community as an instrument for the protection and furtherance of liberty and democracy. In these days of turmoil at the very heart of Europe, these cannot be dismissed as mere words; the ability of our ten [end p3] nations to act as a real force for stability and democracy in Europe by acting in a united and authoritative manner could play an important role in such situations. And it is interesting how this seems to be becoming accepted even by those who affect to have little time for the European Community: for instance the Len MurrayGeneral Secretary of the TUC wrote to me before the European Council urging the UK to give a lead to the EC in providing food aid to Poland (which we were of course already doing) and asking that this matter should be considered at the Council (which it was).
Labour Party Policy
5. All this makes Labour's “Little England” policy look even less plausible. They claim this policy is “internationalist” . But surely genuinely internationalist policy would involve supporting idea of securing reforms in the Community to enable it to tackle economic and social problems? Difficult to see what British interest would be served if we withdrew; certainly no convincing evidence in Labour document that we would be better off outside. If EC membership incompatible with Socialist policies, why do Socialist, or part-Socialist governments elsewhere in EC, such as that of President Mitterrand, strongly profess the opposite? (as, I notice, do the new dissident group within Labour's own ranks, which last week announced their belief [end p4] that there is a sound “Socialist argument” for remaining in the EC). If it represents a threat to national sovereignty, why do none of the other Member States seem worried about this? Surely nobody seriously believes the French or Germans are less keen to maintain their national identity than we are? How can Labour dismiss as inconsequential the risk to our trade, and to foreign investment in this country—with all the jobs that depend on these things?
Public Opinion
6. Glad to see that despite (or perhaps because of?) Labour posturings, Government's belief that people become less hostile to EC as they get to know the facts seems to be gradually being vindicated. Not noted as a believer in opinion polls, but clear from recent ones that situation is very slowly improving to point where some polls put numbers of “pros” and “antis” roughly equal. Believe this is to considerable extent result of determined effort, by Government as well as by organisations like yours, to put across the facts: facts which demonstrate clearly, without need for embroidery, the advantages of EC membership for ordinary people—and the lack of any credible alternative. But this task of explaining the facts is a never-ending one. [end p5] Still widespread misunderstanding and prejudice. And no doubt this will get worse as election approaches. So hope you will keep up the good work.
Conclusion
7. Community faces some crucial decisions about its future development. Many of these are now overdue, especially on Mandate. But convinced from my own first-hand observation that fellow Heads of Government share our view of importance of getting on with this; confident therefore that as in past agreement, will be reached. This will open way for development of a Community which has a fair budget system and which works more effectively for its citizens; both through developing its ability to counter economic problems which face all of us, and by giving Europe a stronger, more influential voice in the world. Believe our partners share our view that this objective too important to be lost through inability to agree on relatively detailed subjects.
8. Government determined to continue efforts to get our message across to British people. We believe it is a vital one for future of Britain and of Europe. But need all possible help from organisations such as CGE: confident we shall continue to get it.