It
was only later in the 1 950s that the change in our position in A
message from the Prime Minister
The
time has come when Britain has to make the choice whether or not to join the
European Community. It will be a historic decision. And before Parliament comes
to take it I am certain that there should be, throughout the nation, the widest
possible discussion and understanding of what is involved.
I
hope that this short version of the Government's White Paper will help to
explain the major issues. It records the results of the successful negotiations
between Britain and the Six, and sets out the difficulties as well as the
opportunities of joining.
Finally,
it explains why the Government firmly believes that the terms for British entry
into the European Community are fair and reasonable.
The Choice
Security
Will
our security be better served by joining the European Community than by not
doing so? No Government in these islands has been able to ignore for more than a
short time, or without disastrous consequences, the course of events on the
continent of Europe. Whatever the future holds, our security and that of Western
Europe will remain interlocked.
Prosperity
Will
we be able to manufacture and trade more favourably if we join the European
Community than if we do not? The strength and prosperity of Britain depend
partly on our efforts as a people and partly on economic conditions in the world
outside. The conditions under which we manufacture and trade are of vital
national interest to us.
If
we say "No"
A
decision not to join would be a reversal of the whole direction of British
policy under successive governments, Conservative and Labour. No other grouping
of countries which has been proposed is acceptable to the nations concerned. In
a single generation we should have rejected an Imperial past and a European
future, and we would have found nothing to put in their place.
The
Government's decision
Her
Majesty's Government is convinced that our country will be more secure and our
people and our industries more prosperous if we join the European Community than
if we remain outside. It will therefore seek the approval of Parliament in the
autumn for a decision in principle that Britain should join the Community on 1
January 1973 on the terms which have been negotiated.
The
Six and Ourselves
The
Communities develop
After
the war the countries of Western Europe felt the need for closer co-operation
among themselves. They wanted to prevent future wars between each other and to
replace their economic rivalry with more constructive co-operation.
This
deeply felt need for closer co-operation led to the creation of the Brussels
Treaty Organisation (later known as the Western European Union), the Council of
Europe and the Organisation for European Economic Co-operation (now the
Organisation for Economic Co-operation and Development). Britain is a member of
all these organisations.
But
the Six felt the need to go further. In 1951 the European Coal and Steel
Community was set up. Then in 1957 the European Economic Community and Euratom
were founded by France, Germany, Italy, Belgium, Holland and Luxembourg.
How
they work
The
Economic Community was set up by the Treaty of Rome. The main objectives of this
treaty were to promote an ever closer union among European peoples, to ensure
economic and social progress by eliminating the barriers which divide Europe,
and to improve the living and working conditions of its peoples. Restrictions on
trade were to be abolished and the prosperity of their former colonial
territories developed. The Six each retained their own national institutions and
national identities.
Despite
severe strains imposed on them in these early days the prosperity of the Six has
increased impressively and their influence in the economic councils of the world
has grown. The Interests of each member state have been preserved, as well as
the interest of the Community as a whole. Today there is no significant body of
opinion inside the Six which opposes the Community idea.
Why
Britain stayed out
Britain
took part in some of Europe's co-operative ventures after
So
we were less immediately conscious of the need for unity in Europe. We were not
ready to go as far and as fast as the others. In fact, in the early 1950s we
would have been welcomed as partners by all the Six countries, and the reserves
of economic strength with which we emerged from the war would have given us a
leading position.
It
was only later in the 1 950s that the change in our position in
Britain
applies to join
By
1960 the desire to share more closely in the economic and industrial development
of Europe had become powerful. And so in 1 961 the Conservative Government
decided to apply for negotiations to see whether satisfactory arrangements could
be made to meet the needs of Britain, the Commonwealth, and those European
countries not in the European Economic Community who had formed the European
Free Trade Association.
Together
with Norway, Denmark and the Irish Republic, who have all expressed an interest
in joining at the same time as Britain the Six would become a Community of Ten
with a population of 255 million.
The
size of the enlarged Community including Britain
The
Conservative Government in 1961 stated that the decision to apply was reached
"not on any narrow or short-term grounds but as a thorough assessment over
a considerable period of the needs of our country, of Europe and of the Free
World as a whole. We desire to become full, whole-hearted and active members of
the European Community and to go forward with you in the building of a new
Europe".
The
Labour Government in 1967 renewed Britain's application for membership of the
Community. It spoke of "the long-term potential for Europe and therefore
for Britain of the creation of a single market 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".
The
Labour Government stressed that its "purpose derives above all from our
conviction that Europe is now faced with the opportunity of a great move forward
in political unity and that we can-and indeed we must-play our part in it".
The statement went on to say that the Government intended 'to pursue our
application for membership with all the vigour and determination at our
command".
The
negotiations succeed
Both
the Conservative and the Labour Governments were frustrated in their attempts to
join the Community in the 1960s by a decision of the then French government. But
on both occasions the government of the day did not withdraw Britain's
application.
In
May 1 970 the Labour Government declared that it intended to begin negotiations
again as soon as possible. This intention was repeated by the new Conservative
Government as soon as it took office in June 1970 and negotiations began on the
last day of that month. Britain's negotiators then went forward on the lines
prepared by the previous Labour Government.
A
year later, the British negotiator was able to announce that apart from
fisheries, which is still to be negotiated, all the crucial issues had now been
dealt with. The success of the negotiations makes it clear that it is now open
to us to join the Community if we wish to.
Our Prospects
The
Government believes that membership of the European Economic Community will
enable Britain to achieve a higher standard of living. The Six have been able to
do this themselves, Membership of the European Economic Community would provide
the most favourable means of achieving the economic progress which we all desire
and which has eluded us for so long.
Costs
and benefits
Membership
would not automatically improve our performance and we would be involved in
costs as well as benefits, Prosperity in any country depends first and foremost
upon the size and effective use of its resources and manpower, plant, equipment
and managerial skill.
For
industry better opportunities once we are inside the Community will enable
Britain to sell more and to produce more. As a result, we would increase our
national wealth and so be able to improve our standard of living as well as meet
the cost of entry. Given a minimum increase, by the end of five years our
national income could be some £1,100 million a year higher. No firm estimate of
the long~term industrial benefits can sensibly be made, but the Government is
confident from the experience of the Six, that the effects of entry will be
positive and substantial.
A
larger market for trade and industry
Membership
of the Community would mean that British manufacturers will be selling their
products in a home market five times as large as at present. Trade amongst the
Six has grown far faster than our exports to them, For advanced industrial
countries like Britain large markets free from trade barriers can encourage a
high level of investment in modern equipment and so offer the chance of new
jobs.
Where
real earnings are higher
In order to see what may happen if we join the Community we must look at
the evidence provided by the experience of the Six
In 1958 people in Britain were earning, on the average, about as much as
people in France, Germany and Holland, and well over half as much again as those
in Italy.
By 1969 average earnings in Italy had caught up with British earnings,
and in the other Community countries they were between a quarter and a half
higher than in Britain.
Between 1958 and 1989 average earnings in Britain, after allowing for
price inflation-that is, the real earnings-had
increased by less than 40 per cent, while in the Community countries they had
gone up on average by over 75 per cent.
If we join, and provided British industry takes its opportunities, wage
earners will benefit from increased prosperity and their real wages should rise,
as those of wage earners in the Six have done.
INCREASE
in average income per employed person in
real
terms 1958-69
(Click on image to enlarge)
The
Community's farming policy
When adopted by us, this common agricultural policy will stimulate
British farm output and open Community markets to our food exports. But at the
same time it will raise the cost of our food imports. The extent of this
increase in costs will depend on the difference between Community and world food
prices, which has been narrowing considerably in the last year or two. But if
the present price gap were to continue the additional cost to our balance of
payments on account of food imports is still not likely to be more than £5
million in the first year and £50 million a year by the end of five years.
Effect
on food prices
On the same assumption about Community and world prices, it is expected
that as a result of adopting the common agricultural policy the average rise in
the housewife's food bill over the first five years will be about 2 & half p
in the £ per year. This means the cost of living would increase by about a half
P in the £ per year.
Price increases would vary for different foods. For example butter,
cheese and beef prices are likely to rise more than the average, and bread,
flour and eggs by about the average. Milk, fish, oils and fats, tea and coffee,
should show little change. Some fruit and vegetable prices may be lower at
certain times of the year.
The narrowing difference between world food prices and the Community's
means that the effect on food prices in the shops after Britain joins the
Community will not be as great as was once feared. In addition, tariff
reductions should lead to lower prices for some manufactured goods,
Our
standard of living
Wage earners will benefit from the increased prosperity of British
industry and their real wages should rise as those of wage earners in the Six.
Retirement pensioners and those on other social benefits will be
protected from the effect of food price increases in the shops that may be due
to British entry. They will get adjustments of those social benefits, including
supplementary benefits.
National insurance pensions and related benefits are already having their
purchasing power maintained through regular reviews every two years. The next
review will take place in 1 973, and the small effect on prices of joining the
Community will not begin to be felt until the spring and summer of 1973. The
Government promises that in these reviews both in 1 973 and afterwards full
allowance will be made for the effect on prices of our joining the Community.
The National Health Service to the public will not in any way alter as a
result of Britain's entry.
Our
Own ldentity
Our
own vital interests
Britain, inside the Community, will have every opportunity to make its
views heard and its influence felt. When a government considers that vital
national interests are involved, decisions are only made if all members agree.
No
one nation can override another
There is no question of Britain losing essential national sovereignty;
what is proposed is a sharing and an enlargement of individual national
sovereignties in the common interest.
Our own way of life
The Six have not lost any of their national identities, national
institutions and points of view. Nor will Britain. The Six have kept their own
ways of life; any tourist knows that France and the French are no less French,
Holland and the Dutch are no less Dutch, after years of Community life.
Our
own Queen and Parliament
They have kept their own Monarchs and heads of State, their own
governments, their own Parliaments, Courts and local authorities. So will
Britain.
Our
own laws
The English and Welsh and Scottish legal systems will continue as before,
except that there will be certain changes under the treaties concerning economic
and commercial matters. The British safeguards of habeas corpus and trial by
jury will remain intact. So will the principle that a man is innocent until he
has been proved guilty. Family law, nationality law, land law and the law of
landlord and tenant will remain exactly the same.
The
Negotiations
A
successful outcome
All the main issues apart from fisheries were dealt with in the
negotiations between Britain and the Communities.
Community
institutions
An equal place and equal voting rights with France, Germany and Italy
will be given to Britain.
English will be one of the official languages.
From now onwards until the time we join, the Community has promised that
no decisions will be taken by it without consulting us. Britain will be able to
influence decisions made by the Community in the interim period. Equally the
British Government has undertaken similar obligations where the Community is
affected.
Special
arrangements
It has been agreed that we shall have five years in which to adjust
ourselves to entry into the enlarged Community.
For industry we have secured the advantages of a single European market.
All tariffs between Britain and the Six will be eliminated in five equal
stages starting three months after we join. Within three years of our entry our
exporters will have virtually duty free access into the market of the Six.
For our farmers we have made arrangements to provide for a gradual
increase in market prices. Special provisions are being made for horticulture.
These arrangements provide for a smooth transition for our farmers and growers
with fair competition and stability.
The Government will be able to continue to help hill farmers maintain
their income.
In general, British farmers can expect increasing prices and better
returns for their produce despite higher feed costs. It is estimated that by the
end of the five years, agricultural production in Britain will be 8 per cent
greater than if we were not members of the Community.
The
Community Budget
Every
member contributes to the Community Budget. For the first five years the
Community has agreed that our share of the
Benefits from the Budget which will be paid to Britain have to be offset
against the payments that we make towards it. This means that Britain will pay
about £100 million to the Budget in the first year after entry, rising to some
£200 million in 1977.
For Northern Ireland the Government has asked for a special five-year
period before the free movement of labour requirements apply. Further special
measures may be needed after the five years.
Fisheries
The arrangements for fishing have still to be settled. The Government is
determined to secure proper safeguards for the British fishing industry. The
Community has recognised the need to change its fisheries policy for an enlarged
Community of Ten particularly in regard to access to fishing grounds.
Regional
development
As members of the Community we shall be able to deal more effectively
with the problems of regional development, not least because of the new economic
opportunities that will exist. The present members are pursuing regional
policies on economic and social grounds similar to ours.
New
Zealand
New Zealand will be assured access to the Community market for a
substantial quantity of its current dairy exports to Britain. This will decrease
only gradually, so that by the end of 1977 New Zealand will still have a
guaranteed market for at least 71 per cent of its butter and cheese exports to
Europe. This should give New Zealand earnings equal to or higher than she gets
in the British market now.
Three years after our entry there will be a review of the arrangements
for butter, and after that measures will be decided
Australia
and Canada
Because they are highly industrialised it has been recognised since 1967
that no special arrangements would be necessary for Australia and Canada. But
they will benefit from special agreements on certain industrial materials. If
there is any abrupt disruption of trade in their farm products the Community has
agreed to take speedy and effective action to deal with it.
Sugar
Britain's obligations to buy agreed quantities of sugar from the
developing Commonwealth until the end of 1974 will be fulfilled. After that it
is the firm declared purpose of the Community to safeguard the interests of
these Commonwealth countries. The countries concerned have accepted this
assurance.
Association
The Community has offered Association to the independent developing
Commonwealth countries in Africa, the Caribbean, the Indian Ocean and the
Pacific so that their exports will be protected and enjoy access to Europe.
The
Coal and Steel Community
If we join, there will be no interference with the size or status of the
British Steel Corporation or the National Coal Board. Producers, consumers and
workers will be represented on the Consultative Committee.
The
Atomic Energy Community
We have accepted the Euratom treaty which is concerned with the peaceful
uses of atomic energy, nuclear research and the spread of technical information.
copies
of this booklet are available at post offices. Persons or organisations
requiring
10 copies or more should write to P0 Box 201, Mitcham, Surrey.
The
Government White Paper: "The
United Kingdom and the European Communities" (Cmnd. 471 5.) is obtainable
through booksellers and from HMSO bookshops at the following addresses:
49
High Holborn. London wc1v 6HB
50 Fairfax Street, Bristol 851 3DE
3a
castle Street. Edinburgh EH2 3AR 258 Broad Street. Birmingham B1 2HE
109
St. Mary Street. Cardiff cf1 1JW
80 Chichester Street, Belfast BT1 4JY
Brazennose
Street. Manchester M60 BAS
Issued
by HM Government, July 1971. Design by the central Office of Information.
Printed in England for HMSO by Sir Joseph Causton & Sons Ltd., London and
Eastleigh.
The
Opportunity
The price we shall have to pay for the economic and political advantages
of joining the Community has been set out in this short version of the
Government White Paper. These advantages will more than outweigh the costs,
provided we seize the opportunities of the far wider home market now open to us.
Higher
standards of living
If we do as the Six members of the Community have done, then we shall get
a substantial increase in our trade and a stimulus to growth and investment. We
shall also get a greater rise in real wages and standards of living than we have
known for years or than would be possible if we remained outside.
The contrast between the experience of the Six in recent years and ours
outside the Community shows that they chose the right road.
An
influence in the world
We have grown accustomed to the political and military predominance in
the world of the two super powers, the United States and Russia. In economic
affairs the Community and Japan are well on their way to super power status.
These giants will increasingly set the pattern of economic life.
If we join, we should have more opportunity and strength to influence
events than we could possibly have on our own; if we do not join, the Community
would continue to grow in strength without us. Our power to influence the
Community would steadily diminish while the Community's power to influence us
would as steadily increase.
Britain
and Europe
Together we could tackle the problems of technological development which
would be far too big for any one of us.
Together we could compete more effectively overseas.
Together we could help the poorer countries of the world more generously
than if we were working on our own.
For the first time since the war a Europe united would have the means of
recovering the position in the world which Europe divided has lost.