Signor Craxi
(through interpreter) We're opening this conference with two brief remarks and you can listen to the simultaneous translation. We have concluded a series of meetings that were just held amongst the delegations of the British and Italian delegations and in the framework of the periodic consultations that our governments hold, in the framework of the bilateral co-operation. The discussions were held in an atmosphere of great cordiality and they were animated by a very constructive spirit and this is very important in order to consolidate the traditional friendship that makes the relationship between our two countries and also in order to focus those items of common interest. Both our governments that's the British government agree to eliminate the negative results of the Athens summit and to work with great commitment in order to attain … . before their next European summit to agreements in order to relaunch the Community, to relaunch the collaboration of the EEC, which constitutes the objective of both governments. We exchanged opinions on the East/West situation in general and we confirmed the common intention to contribute our search for a solution to resume negotiations and to extend and broaden the grounds for the negotiation.
We jointly examined the Lebanese issue where military contingents of Britain and Italy are involved in the framework of a multinational peace force, we equally acknowledged our converging points of view on the need to maintain this commitment while we simultaneously seek better prospects that can re-establish national reconciliation in the area. We also … positioning the multinational peace force or to create a link between the multinational peace force and the initiatives of the United Nations. And finally we exchanged views and information on the matter concerning the Falkland islands and also concerning those problems that are linked to this very grave crisis. I wish to repeat what I emphasised at the beginning the Italian government looks upon these discussions in a very favourable way. These discussions held in the city of Rome.
Margaret Thatcher
… . (opening sentence clipped) … ..
This has been a very friendly summit in which Mr. Craxi and I and the ministers who have been with us, have usefully covered a great deal of ground, we got off to a splendid start last evening at a dinner attended by so many ministers, whom I've met over the years and of course one has the knowledge that we've frequently been discussing things in the same forum and we start therefore on a very good friendly basis, added to that friendly basis the commercial relations between Italy and Great Britain are good, some two million tourists, British tourists, come to Italy each year and of course we have just decided to have the first anglo/Italian round table in Rome this spring. Against that background we share very similar views on East/West relationships and [line missing] [end p1] United States and fully carry out our obligations under NATO. We also as the Prime Minister has said, discussed the Lebanon. We're both again partners in the multinational force in the Lebanon. We went there to assist the process of reconciliation and to give Lebanon a chance to survive as an independent country with its own choice of government. We are very much aware of the problems there and I share Prime Minister Craxi 's views, that both of us see the possibility of an expanded United Nations role in Lebanon, but in the meantime we are there and do not intend to pull out to leave a vacuum in that country. As Prime Minister Craxi said we had a brief mention of the Falklands, in which we exchanged views and information but it was only a very brief part of our talks. We then went on to discuss the Community problems. There we have many things in common, we're both big importers of food from the Community and therefore we do not wish to see prices rise too high but we have certain differences on the budget and certain views about the way in which the Common Agricultural Policy should be reformed. We both expressed our views very clearly and I think Prime Minister Craxi and his ministers fully understand Britain's views and the stand we have taken on the budget and on surplus products in the Common Agricultural Policy and the reasons for it.
We were both present at the Athens summit where we spent two days discussing all of these things in detail. We're now aware of two very strong feelings. One, that we would like to solve the problems at Brussels: two, that the problems won't get easier to solve as time goes by but if I might add the different feeling that we do not under-estimate the difficulties of getting full agreement and therefore we have to work very hard between now and the Brussels summit to do everything we can to sort out the differences between the ten member countries so that we may be able to make very substantial progress at Brussels. And finally may I thank our hosts for the excellent hospitality, their warm welcome and share Prime Minister Craxi 's view this was both a friendly and a very constructive summit. Thank you.
Interpreter
Do we have questions? We can start with the question now.
Reporter
Mrs. Prime Minister … .
Interpreter
My name is … (name lost due to fault on line) … . what …[line missing] [end p2]
Mrs.Thatcher
With regard to the first part of your question the answer is—none so far: sovereignty of the Falklands is not negotiable: I did, as you know, send the new President Alfonsin a message on his inauguration saying that although we had differences we were pleased that democracy had been restored in Argentina and although sovereignty and the position now is that although sovereignty is not negotiable we would like to improve relations on other fronts particularly in commercial relations and of course if ever we are to restore diplomatic relations, which we hope, it would be necessary for Argentina to renounce the use of hostilities.
Q
Do you think, Mrs. Thatcher, do you think that an Italian contribution to the Falkland issue and to a resumption of contact with Argentina could be useful and to what extent?
Mrs.Thatcher
We would do any negotiations on improvement in commercial relations direct.
Interpreter
I'm sorry if there's no microphone I cannot translate—I'm very sorry. I just wished—Galiis+ from the German <??> station—<??> like to ask Mr. Craxi.
Whether during his discussion with Mrs. Thatcher one talked of forecast trips to budapest. Both with regard to Mrs. Thatcher and Mr. Craxi to unblock the East/West situation.
Signor Craxi
We limit ourselves to an exchange of information. Both of us will be going to Budapest in the framework of the bilateral relations that we have with the Hungarian government and our main intention is to improve relations between our countries and also to improve the international atmosphere: this is the intention of the Italian government and I imagine also that of the British government.
Interpreter
Semir Tito+ from Kuwait news agency. My question is the following—did you only discuss the Lebanon but also … . also the Middle East? I wish to question, is there a possibility to study the change of the 242 revolution on the United Nations Security Council to solve the problem in the Middle East?
Mrs.Thatcher
Discussions were mainly concentrated on the [Line missing] [end p3]
Interpreter
Any other questions? Yes?
Reporter
… press. Mrs. Thatcher could you tell me if as there seems to be very little progress in Lebanon at the moment, whether contingency plans for pulling out were discussed between you and Mr. Craxi, given that Britain and Italy are much less enthusiastic about their presence in Lebanon than the Americans?
Mrs.Thatcher
No, we <??> participate in the multinational force and we believe that we must all four act together in any action that is taken: it'd be most unwise ever to leave a vacuum there and therefore we will continue to act together. We are, as Prime Minister Craxi and I agreed, interested in the possibility of having an expanded role for the United Nations in the Lebanon and that would be the way to have a different force there should the multinational force eventually agree together on a different course of action.
Reporter
Prime Minister.—Robin Oakley ‘Daily Mail’—does the Italian government now accept as a result of your talks with Signor Craxi, that there can be no progress on increasing EEC budget resources without a permanent mechanism to ensure that Britain's contribution in future is a fair one?
Mrs.Thatcher
… . made that very clear the own resources <??> taken by all member states in 1976, all member states are now seeking a change in that decision, some by seeking an increase in the percentage of value added tax which goes to the Community and we are saying that there can be no change in the own resources unless the main change of a fair and equitable mechanism for contributing to the community is established. And the one depends upon the other and I have made that very clear in each of the bilateral talks I've had. No increase in own resources unless there is a fair and equitable sharing of the burden of financing the Community
Interpreter
I'm from the Argentinian television. One talked a lot in these recent days of the possibility as to … sorry, she's speaking Spanish, I'm sorry she spoke Spanish, it is very difficult
Signor Craxi
I must repeat that we did have an exchange of opinion and information, as far as I am concerned I will limit myself to presenting what I believe and I think I believe in what the British government wishes and in what the Argentinian government wishes. [end p4]
Interpreter
Georgia Denaldi+. From the 19th century newspaper—as to the question of the Italian contingent, one should have waited a second round of the Geneva talks and to … well, this second round is not talked about at all. Has the attitude of the Italian government changed in this regard?
Signor Craxi
Well, there is a very firm position of the Italian government in this regard as to our military commitment in Lebanon and as to the multinational force, we will not take a unilateral decision and we will agree to align together with all those other nations that have taken up this commitment with us. I do not conceal though that the situation where it stands today creates great concern to us all, because an earlier stage that seemed to open up the way to a certain reconciliation, was followed by another and very tormented stage, vis-a-vis the … . our disappointed hopes. However any reconciliation prospects need not necessarily be lost for ever. Now it is the time to step up our political and diplomatic efforts to clarify the position of all the protagonists involved in this critical event.
Interpreter
Mrs. Thatcher, I come from the Argentinian television broadcasting station broadcasting station—what do you think of the electoral result in Gibraltar today and what possibilities do exist in proceeding in negotiations with the Spanish government?
Mrs.Thatcher
Well, to answer your question, we have been really rather actively involved today.
Interpreter
Argi Emundo+ from Venezuela—the British government will follow to … <??> to say to dedicate almost all aid to the African continent, this question is also addressed to Mr. Craxi.
Mrs.Thatcher
No, we do not dedicate all aid to the African continent, we try to give the greatest part of aid to the poorest countries. They are not all on the African continent and we shall continue with our present policy, so the greater part of our help we try to give preference to the poorest countries and of course we pursue other aid are we can, quite a lot of our aid goes through multilateral organisations, like the World Bank, like LOME +++ and the EST goes bilaterally but it is the bilateral aid that goes, quite a lot of it, to the poorest countries.
Signor Craxi
Well it's very difficult to <??> that the African continent is less favoured than the others. However in our co-operation and aid policy, we observe the policy of having a more wider intervention spectrum although Italy dedicate a lot of its efforts in aiding African countries.
Interpreter
One more question. [end p5]
Interpreter
For television, in an Italian newspaper it reports that four per cent of the British defence budget, about 250 million pounds sterling, are being used to reinforce the security in the Falkland islands. Is it true about this sum and also I know if it's being done to prepare it to be a NATO base or to use it as a base for the NATO eventually in '85–86?
Mrs.Thatcher
Doubtless you will recall that in days gone by we had only a tiny force on Falkland, some 35 marines: you will also recall that the Falklands was invaded by some ten thousand troops and occupied. You will also recall that it was necessary for us to restore that territory to Britain and to the democratic rule which were the wishes of the people. Having had that experience it'd be most remiss of us if we did not make proper proves defend the people from the Falkland islands against any other possible attack. The work that is being done down there on a new airfield would in any event be necessary and was previously recommended by the Shackleton report some years ago for the proper commercial development of the islands. It will also of course enable us to reinforce more quickly militarily. The purpose of our work down there is not for a NATO base, it is for the proper effective defence of the right of the citizens of the Falkland islands.
Reporter
Will you give them hospitality? Will you allow them to put their boats and their things there? If NATO makes a request will you allow them to use the base?
Mrs.Thatcher
… has very strict limits within which NATO can operate, NATO is a North Atlantic alliance and does not operate out of area members of the alliance do separately, operate out of area, they do not operate out of area as members of NATO but in pursuit of their own particular interests.
Reporter
I wanted to ask—I am Corriere della Serra since the Ministers of Defence took part in these discussions, what agreements were taken in order to increase collaboration in the military field especially in its production of sophisticated arnaments thank you.
Mrs.Thatcher
As far as … none today in particular—well, you will be aware that we have signed a memorandum of understanding on the new helicopter which is very very welcome indeed.
Interpreter
Any other questions? Guiseppe Tanasi+ from [line illegible] [end p6]
Interpreter
On this point the government have and will have a continuous exchange of information in order to prepare for the London summit.
Mrs.Thatcher
Of course we've discussed the economic problems which we all face today and that will be discussed in greater detail at the summit and possibly of course at brussels as well. So we were discussing the problems although not specifically the summit.
Interpreter
I would like to ask both Mrs. Thatcher and our Prime Minister whether in this period of critical examination of the failures of the EEC. There is a possibility that the EEC ideas will go beyond just the economic inspiration of the EEC.
Signor Craxi
I (interpreter) well, everyone is reflecting on the experience of the EEC and on its future this reflection induces us to say for example that the EEC cannot just be boiled down to an agricultural community, there are other aspects and dimensions involved, both political, legal, scientific and industrial, that deserve to be deepened in order to reconstruct a ground whereupon collaboration in EEC may flourish. President Mitterrand who has the Presidency of the EEC, initiated a series of consultancies it at will go on during next week: a number of bilateral meetings are forecast between members of the EEC and there's a very intense programme of consultations on a technical level and we hope that this exchange of views will lead to very fruitful and useful results and which will enable us to attain the objectives that we've set ourselves.
Mrs.Thatcher
I think all organisations have to adapt to modern circumstances to survive. The arrangements that were suitable at the beginning for the six are not turning out to be suitable for the ten and the arrangements with which we got by with ten will not be suitable for twelve, so we have to a the present budget arrangement was a modification and not in the original treaty which is not now satisfactory. In the original treaty with regard to the Common Agricultural Policy, no-one foresaw the extent to which we should have surpluses now. It is ridiculous not to change the Common Agricultural Policy because we can't go on just producing those enormous surpluses and then heavily subsidising them to be sold abroad. When the Community started down if you look back at the treaty you will find that one of its purposes was to help break down international barriers to trade and not in any way to form new protections. Now we all have to change, change is an essential part of life and so therefore the community must [line illegible] must tackle its problems. [end p7] Treaty, is excellent but I would agree with Signor Craxi that we need to put lees emphasis on the Common Agricultural Policy because it's taking up such a large proportion of the budget and we must reduce that proportion of the budget so that in fact we have room the better to do other things. One of the things which tends to have bypassed to some extent Europe, is the enormous electronic technological revolution. We are getting well up with it now but there's not the slightest shadow of doubt that Japan and the United States overtook us—very ironic that because in a war we are very inventive and excellent at scientific research in Europe and we would obviously like to attend more to this. We also perhaps would like to give more attention to some of the social problems. Some of the problems which are treated as part of the Common Agricultural Policy are really social problems and perhaps should be dealt with in that way. So, yes change is constant but it's not easy to agree on the change that will be brought about. This we have to tackle but I hope you won't think that just because it's difficult to bring about change that the Community is not a vital and important. Increasingly important part of our lives because its contribution, not only to our own countries, but to the wider world is a great political contribution of an area of democracy and stability. That's in the interests of the wider world and in the interest of each an every one of our peoples. <??> the Argentinian Foreign Minister, who was here in Italy, said that is country is willing to cease hospitilities but not unilaterally as to the problem of Falkland island. I would like to know from Mrs. Thatcher whether this is a fundamental condition to resume negotiations with Argentina—one—and two—I would like to know whether Great Britain requested the mediation of Italy with regard to this problem and whether it would be willing to accept this mediation if Italy were prepared to do it?
Mrs.Thatcher
To the first question, the fact that Argentine has not permanently ceased hostilities is a great stumbling block, it should not prevent us from trying to open negotiations on improving commercial relations. We could not of course get very far in resuming diplomatic relations unless an end to hostilities were declared and it is astonishing, if I might say so, that an end to hostilities has not been declared. With regard to the other point, the answer is no, if we feel that we are likely to get any further with resuming better commercial relations and trying to establish more friendly relations which we would like, we feel it is better to do those [line illegible] [end p8]
Interpreter
We still have time for one more question.
Reporter
… (first few word lost) … . British Prime Minister, in regard to the Falklands, whether she would be prepared to contemplate allowing citizens of European Community countries to buy land or property there?
Mrs.Thatcher
No, that is governed by rules which emanate from the legislative council in the Falklands and that is a matter for those people there to consider.
Interpreter
Thank you very much.
+ denotes phonetic spelling for unconfirmed name
++ denotes indistinct word.