Reaction to Norway’s vote

Press, Volume CXII, Issue 33033, 28 September 1972, Page 17

Reaction to Norway’s vote

f1».2 PA -Reuter —Copi/rightj OSLO, September 27.

Norway’s pro-Europe Labour Prime Minister, Mr Trygve Bratteli, will meet parliamentary leaders today in an effort to pull the country out of a political crisis over the people’s rejection of Common Market membership.

The negative vote in a referendum was a stunning blow to Mr Bratteli. who last night announced that he planned to resign early next week. He also made it clear that he was not prepared to head a new Government immediately after the defeat of his policy of bringing Norway into Europe to strengthen ties with the West. Well-informed sources said that Mr Bratteli would suggest that the anti-Marketeers. headed bv the Centre (Agrarian) Party form a new Government with a mandate to negotiate a new trade arrangement with the European Economic Community. Mr Bratteli was expected to recommend to King Olav that he call on Mr Per Borten. the Agrarian ParliaI mentary leader, to form a Government. Political circles said that there was. however, opposition against Mr Borten as Prime Minister among the I anti-Marketeers and that the King’s possible next candidate would be Mr Hallvard Elka, denutv chairman of the Liberal Partv and one of the leading anti-Marketeers. Political circles said that should the anti-Marketeers fail in their attemot. Mr Bratteli. after a thorough discussion with the minority Labour Party’s political groups, might be prepared to return to office.

Mr Bratteli, in a speech last night, recognised that membership was not possible in the near future. The party should take stock of this situation and seek to strengthen itself as well as the Trade Union Congress after its defeat in the referendum, he said. He said that the party was serving its interests best while in Government, but stressed that it was not his “immediate” step to seek this power.

Anti-Marketeers within his own party yesterday said they would call op Mr Bratteli to form a new Government if the non-Socialist candidates failed and proMarket party sources said this could well be the end result of a serious political crisis.

Mr Borten could either try I to form a single Centre Party ' Government or seek an 1 alliance with the Liberals and ithe Christian People’s Party, ;both of whom are split over the E.E.C. issue. The vote caused concern in ’business, trade, and shipping I industries which had heavily I supported membership. Some industrial share mrices dropped heavily on the ; Stock Exchange — notably i aluminium, ferro-alloys, wood processing and shipyard industries. But oil and ! shipping shares stood their ground. Norway’s rejection of Common Market entry in its national referendum was i greeted with sharp disiappointment in European circles in Brussels. The Dutch Foreign Minister (Mr Norbert Schmelzer) told reporters after a latenight meeting of the E.E.C.’s Council of Ministers: “The Dutch Government. Parliament and people would have welcomed Norway’s participation in the Community. “If the final result is nega-

tive, then it is logical that our Government will regret this very much from the point of view of European unification as we considered Norway’s participation a particularly valuable contribution to it.” Mr Schmelzer stressed that the final decision rested with the Norwegian Parliament “but if it all turns out to be negative, then we can only hope that this will not be a final decision for ever."

He said that the question of Norwegian membership had not been discussed by E.E.C. Foreign Ministers.

In Paris French officials said that the Norwegian referendum decision would be an occasion for regret. The officials said that in the event of a “yes” vote, the expected French attitude would have been one of satisfaction that after several months of doubt, Norway had decided to join.

Mr Sigismund van Braun, the West German Secretary of State for Foreign Affairs, said that he was disappointed by the result but was not really surprised.

“But I have not given up hope that Norway will one day come closer to the European Community,” he declared.

The feeling was shared by the Luxemburg Foreign Minister (Mr Gaston Thom) who thought it almost inevitable that Norway would join the E.E.C. in a matter of years. But the price might be higher then, he said. The Norwegian Ambassador to the Common Market (Mr Jahn Halvorsen) said one of the first tasks of the Norwegian Government was to negotiate a substitute agreement with the Community.

But he thought these talks could not now begin until after the European summit meeting on October 19 and 20 in Paris, and could not be completed by the end of the

year to coincide with the E.E.C.’s enlargement. Britain would join the European Common Market irrespective of the decision in the Norwegian referendum, British officials said in London. The officials said that the Norwegian referendum decision was a matter which the Norwegian people must decide for themselves alone. But the British Government would naturally have been glad if the Norwegian people had decided in favour of entry. The British Government made it clear in the House of Lords on September 12 that Britain’s instrument of ratification would be deposited irrespective of the Norwegian and Danish decisions; Denmark is due to hold a referendum on the question of Market entry early next month. The bill, which will take Britain into the Common Market on January 1, was given its final approval in Parliament on September 20. The negative Norwegian vote is expected to have a strong influence on the outcome of the Danish referendum. At the same time the Danish Government is confronted with a foreign exchange crisis. The Prime Minister (Mr Jens Otto Krag) announced on television late last night that foreign exchange dealings would be suspended until after the Danish vote—unless there was an unexpected turn-around in the Norwegian referendum situation. The move comes after a run on foreign exchange yesterday which drained Denmark’s reserves of some 500 million kroner.

Speculators were acting on fears of a negative vote to E.E.C. membership by the Danes, which Mr Krag has already warned will lead to a devaluation of the kroner.