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AT THE 2ND MINISTERIAL MEETING IN THE NEGOTIATIONS BETWEEN THE COMMUNITY AND THE UNITED KINGDOM HELD ON 27 OCTOBER 1970 , MR . G . RIPPON , CHANCELLOR OF THE DUCHY OF LANCASTER , SPEAKING ON BEHALF OF THE UNITED KINGDOM DELEGATION , AND MR . W . SCHEEL , MINISTER OF FOREIGN AFFAIRS OF THE FEDERAL REPUBLIC OF GERMANY , SPEAKING ON BEHALF OF THE COMMUNITY DELEGATION , MADE THE TWO FOLLOWING STATEMENTS .

IN CONCLUSION , THE TWO DELEGATIONS NOTED THAT AGREEMENT HAD BEEN REACHED ON THE BASIS OF THESE TWO STATEMENTS .

I . STATEMENT MADE BY MR . G . RIPPON , CHANCELLOR OF THE DUCHY OF LANCASTER , ON BEHALF OF THE UNITED KINGDOM DELEGATION

1 . AT THE 1ST MINISTERIAL MEETING ON 21 JULY MY PREDECESSOR SAID THAT THE UNITED KINGDOM WAS READY TO ADOPT THE COMMON AGRICULTURAL POLICY WITHIN AN ENLARGED COMMUNITY . HE ADDED , HOWEVER , THAT WE SHOULD NEED TO CONSIDER CAREFULLY A NUMBER OF POINTS , INCLUDING THE PRODUCTION , MARKETING AND CONSUMPTION IMPLICATIONS FOR THE UNITED KINGDOM OF THE COMMUNITY'S REGIMES FOR MILK , PIGMEAT AND EGGS .

2 . THERE HAS BEEN A CONSIDERABLE AMOUNT OF EXPLORATION AND DISCUSSION SINCE THEN , BOTH WITH THE COMMISSION AT A TECHNICAL LEVEL AND MORE GENERALLY AT MEETINGS OF THE DEPUTIES . ON OUR SIDE THE AIM HAS BEEN TO SEE WHETHER ANY SERIOUS PROBLEMS WERE LIKELY TO ARISE AND , IF SO , HOW THEY MIGHT BEST BE AVOIDED . I AM PLEASED TO BE ABLE TO SAY THAT WE HAVE HAD A GOOD DEAL OF ELUCIDATION AND UNDERSTANDING FROM THE COMMUNITY , WHICH HAS HELPED TO CLARIFY MATTERS CONSIDERABLY AND LEADS ME TO HOPE THAT WE MAY BE SUCCESSFUL IN REACHING AGREEMENT ON THESE MATTERS AND THUS REMOVING THEM FROM OUR FUTURE AGENDA .

MILK

WE CONSIDER IT IMPORTANT IN THE INTEREST OF THE COMMUNITY AS WELL AS THE UNITED KINGDOM THAT WE SHOULD BE ABLE TO PROVIDE ADEQUATE SUPPLIES OF LIQUID MILK TO MEET CONSUMER DEMAND THROUGHOUT THE COUNTRY AND THROUGHOUT THE YEAR . WE BELIEVE THIS WILL BE POSSIBLE IN THE LIGHT OF THE CONFIRMATION WE HAVE RECEIVED FROM THE COMMUNITY ABOUT OUR UNDERSTANDING OF THE SCOPE AND NATURE OF THE CURRENT AND PROPOSED ARRANGEMENTS . IT IS , THEREFORE , IMPORTANT THAT I SHOULD RECORD THE MAIN HEADS OF THAT UNDERSTANDING , NAMELY :

( I ) IT IS ONE OF THE OBJECTIVES OF THE COMMON POLICY TO USE AS MUCH MILK AS POSSIBLE FOR LIQUID CONSUMPTION THROUGHOUT THE COMMUNITY , AND THE POLICY SHOULD NOT BE APPLIED SO AS TO IMPEDE THIS AIM ;

( II ) THE PRICE DIFFERENTIAL BETWEEN MILK SENT FOR PROCESSING AND MILK FOR LIQUID CONSUMPTION CONTAINED IN COUNCIL RESOLUTION OF 24 JULY 1966 HAS NO LEGALLY BINDING EFFECT ; IT WILL IN DUE TIME BE SUPERSEDED BY A COMMUNITY MILK REGULATION ; AND , UNDER THE EXISTING REGULATIONS , MEMBER STATES ARE FREE TO FIX RETAIL PRICES FOR MILK FOR LIQUID CONSUMPTION , BUT ARE NOT OBLIGED TO DO SO ;

( III ) REGULATION ( EEC ) NO 804/68 REFERS ONLY TO MEASURES BY NATIONAL GOVERNMENTS PERMITTING PRICE EQUALIZATION , AND ACCORDINGLY A NON-GOVERNMENTAL PRODUCER ORGANIZATION , PROVIDED IT ACTS WITHIN THE PROVISIONS OF THE EEC TREATY AND OF SECONDARY LEGISLATION DERIVING FROM IT , IS FREE BY ITS OWN DECISIONS TO CONSIGN MILK WHEREVER IT CHOOSES IN ORDER TO GET THE BEST RETURN FOR ITS MEMBERS , TO POOL ITS FINANCIAL RETURNS AND TO REMUNERATE ITS MEMBERS AS IT WISHES .

PIGMEAT

WE CONSIDER IT ALSO IN THE INTEREST OF AN ENLARGED COMMUNITY , EXPECTED TO BE MORE THAN SELF-SUFFICIENT IN PIGMEAT , TO ENSURE ADEQUATE MARKET STABILITY , INCLUDING STABILITY ON THE UNITED KINGDOM BACON MARKET . THE COMMUNITY'S PRESENT SYSTEM , NATURALLY ENOUGH , TOOK NO ACCOUNT OF THIS IMPORTANT MARKET _ ABSORBING ANNUALLY SOME 640,000 TONS OF BACON WORTH OVER 1,000 MILLION UNITS OF ACCOUNT . BUT IT COULD MAKE A GREAT CONTRIBUTION TO STABILITY , NOT ONLY FOR THE UNITED KINGDOM AND OTHER BACON PRODUCERS WHO ARE DIRECTLY AFFECTED , BUT TO ALL PIG PRODUCERS IN THE ENLARGED COMMUNITY .

WE HAVE NOT CONCLUDED FROM OUR DISCUSSIONS THAT THE COMMUNITY'S EXISTING ARRANGEMENTS FOR PIGMEAT WILL NECESSARILY BE INADEQUATE OR UNSUITED FOR THE NEW SITUATION EMERGING FROM ENLARGEMENT .

WE DO CONSIDER IT ESSENTIAL , HOWEVER , TO SECURE YOUR RECOGNITION OF THE INTRINSIC IMPORTANCE OF THE BACON MARKET IN AN ENLARGED COMMUNITY ; OF THE BENEFITS THAT ITS CONTINUED STABILITY UNDER CONDITIONS OF FAIR COMPETITION WOULD BRING TO PIG PRODUCTION THROUGHOUT THE WHOLE COMMUNITY ; AND OF THE NEED , THEREFORE , TO KEEP THIS SITUATION UNDER CAREFUL REVIEW DURING THE TRANSITIONAL PERIOD AND THEREAFTER .

EGGS

THE ENLARGED COMMUNITY WILL BE SELF-SUFFICIENT IN EGGS SO THAT PRICES ARE LIKELY TO BE DETERMINED BY INTERNAL MARKET FORCES RATHER THAN BY THE OPERATION OF MEASURES AT THE FRONTIERS . SINCE THAT IS ALREADY TRUE BOTH OF THE EXISTING COMMUNITY AND OF THE UNITED KINGDOM , THE MARKET OF THE ENLARGED COMMUNITY MAY BE SUBJECT TO PRICE FLUCTUATION NO DIFFERENT IN KIND , ALTHOUGH POSSIBLY A LITTLE GREATER IN DEGREE , THAN OBTAINS IN THE INDIVIDUAL MARKETS TODAY . ON THE OTHER HAND , THE TREND TOWARDS THE CONCENTRATION OF PRODUCTION IN THE HANDS OF SPECIALIST PRODUCERS AND PARALLEL DEVELOPMENTS IN MARKETING SHOULD REDUCE INSTABILITY IN THE LONGER TERM . I THEREFORE BELIEVE THAT WE SHALL BE ABLE TO ADAPT TO THE COMMUNITY'S ARRANGEMENTS .

3 . IF YOU ARE NOW ABLE FORMALLY TO CONFIRM THAT OUR UNDERSTANDING OF THE POSSIBILITIES OPEN TO US FOR MILK IS CORRECT ; THAT YOU CAN ACCEPT THE VIEWS I HAVE EXPRESSED ON THE IMPORTANCE AND CHARACTERISTICS OF THE BACON MARKET IN AN ENLARGED COMMUNITY AND RECOGNISE THE DESIRABILITY OF STABILITY FOR PIGMEAT AND EGGS , WE FOR OUR PART CAN AGREE THAT WE NEED RAISE NO FURTHER POINTS ON THESE ITEMS DURING THE NEGOTIATIONS , EXCEPT IN THE GENERAL CONTEXT OF TRANSITIONAL ARRANGEMENTS .

II . STATEMENT MADE BY MR . W . SCHEEL , MINISTER OF FOREIGN AFFAIRS OF THE FEDERAL REPUBLIC OF GERMANY , ON BEHALF OF THE COMMUNITY DELEGATION

THE COMMUNITY DELEGATION SUBSCRIBES TO YOUR ANALYSIS OF THE OBJECTIVES OF THE COMMON POLICY IN THE MILK SECTOR , AND OF EXISTING POSSIBILITIES AS REGARDS RETAIL PRICE FIXING FOR LIQUID MILK AND THE ACTIVITIES OF NON-GOVERNMENTAL PRODUCER ORGANIZATIONS . IT RECALLS , IN SO FAR AS IT MAY BE NECESSARY , THAT THE PROHIBITION OF NATIONAL MEASURES PERMITTING AN EQUALIZATION OF PRICES FOR THE VARIOUS MILK PRODUCTS STIPULATED IN REGULATION ( EEC ) NO 804/68 APPLIES EQUALLY TO ALL NATIONAL LEGISLATION AIMED AT ACHIEVING SUCH EQUALIZATION .

THE COMMUNITY DELEGATION CAN ACCEPT YOUR STATEMENT ON THE IMPORTANCE AND CHARACTERISTICS OF THE BACON MARKET IN AN ENLARGED COMMUNITY . IN THE LIGHT OF THE OBJECTIVES PURSUED BY THE COMMON POLICY IN THE PIGMEAT AND EGGS SECTORS IT SHARES YOUR CONCERN FOR STABILITY IN THESE SECTORS .

NOTING THE STATEMENT BY THE UNITED KINGDOM DELEGATION , THE COMMUNITY DELEGATION NOTES WITH SATISFACTION THAT THE EXISTING REGULATIONS CONCERNING THE THREE ABOVE-MENTIONED SECTORS WILL NOT HAVE TO BE AMENDED TO TAKE INTO ACCOUNT THE ANXIETIES EXPRESSED BY THE UNITED KINGDOM DELEGATION .