Heath Reassures Ottawa On E.E.C.

Press, Volume CI, Issue 29713, 5 January 1962, Page 9

Heath Reassures Ottawa On E.E.C.

(N Z.P.A .-Reuter—Copyright)

OTTAWA, January 4.

Britain and Canada last night appeared to have sealed much of the breach which opened between the two countries over the European Common Market. A two and a half hour “uninhibited” discussion was held between Britain’s Lord Privy Seal (Mr Edward Heath) and Canada’s Cabinet-level “Market” committee.

Canada’s Finance Minister (Mr Donald Fleming), who has led expressions of the Canadian Government’s coolness and fears over Britain’s attempt to enter the European Economic Community, told reporters after the meeting that “the atmosphere could not have been more cordial, and we have enjoyed an uninhibited consultation and exchanges of ideas.” Mr Heath gave the Canadian “Market” Cabinet committee. consisting of Mr Fleming, the External Affairs Minister (Mr Howard Green), the Trade Minister (Mr George Hees), and the Agriculture Minister (Mr Alvin Hamilton) a full report on the negotiations. A further meeting was to be held today. Mr Fleming, who is regarded as the most outspokenly critical member of the Canadian Government over Britain’s attempt to join the Common Market, and who has called for closer consultations between Britain and Canada, said: “Mr Heath has brought us information that is very illuminating. It was a thoroughly good meeting. It is very timely to have these talks, and it has been extremely helpful to hear first-hand from Mr

Heath about the negotiations.”

In Brussels, the Common Market Ministerial Council resumes work today in search of an accord on farming policy, amid Bonn reports that the West German delegation has authority to make concessions.

The council, with Germany presiding, is pledged to sit continuously until agreement before the community of the “Six” can move into its fouryear second stage. Reports of a more flexible German attitude coincided with a three-hour Cabinet meeting in Bonn.

A brief announcement said merely that the Ministers had told their delegates to Brussels the line they were to take.

The French Cabinet also worked over the position yesterday and reaffirmed its view that a common farm policy must be agreed upon before the Market enters on its next stage.

Today’s meeting is the third in three weeks in which the Ministers have groped towards harmonising their

farm policies—the last obstacle to the passage into “stage two.”

The Council adjourned last Saturday night only 24 hours before this stage was due to operate, on January 1. If the new meeting were to fail, tlie Market would lose much prestige and its development might suffer lasting damage. An E.E.C. quarterly report issued in Brussels today said the economic situation of the Common Market at the end of 1961 reflected a somewhat slower expansion as compared with 1960, the Associated Press reported.

“In the third and—as far as can be seen—in the fourth quarter (of 1961 >, the economic activity of the Community continued its advance,” the report said. “The pace of expansion may, however, have slackened to some extent owing perhaps primarily to the strained situation on the labour market. |>ut also to the trend of demand. “In 1961, total industrial production in the Community will probably have exceeded that of the previous year by 6 per cent, and the real gross product may prove to be approximately 5.3 per cent, higher," the report said. “In 1960, the corresponding rates of growth were 13 per cent, and 6.9 per cent.” Among improving sectors observed during the third quarter of last year, the report listed exports to nonmember countries, fixed investment, consumers’ expenditure, services (especially tourism), and imports of finished goods (especially consumer goods).