++++

AT THE 6TH MINISTERIAL MEETING IN THE NEGOTIATIONS BETWEEN THE COMMUNITY AND IRELAND , HELD ON 19 OCTOBER 1971 , MR . A . MORO , MINISTER OF FOREIGN AFFAIRS OF THE ITALIAN REPUBLIC , MADE , ON BEHALF OF THE COMMUNITY DELEGATION , THE DECLARATION APPEARING UNDER I HEREINAFTER .

MR . P . J . HILLERY , MINISTER FOR FOREIGN AFFAIRS OF IRELAND , REPLIED , ON BEHALF OF THE IRISH DELEGATION , WITH THE DECLARATION APPEARING UNDER II HEREINAFTER .

I . DECLARATION MADE BY MR . A . MORO , MINISTER OF FOREIGN AFFAIRS OF THE ITALIAN REPUBLIC ON BEHALF OF THE COMMUNITY DELEGATION

I

1 . THE IRISH DELEGATION HAS STRESSED THAT THE IRISH GOVERNMENT IS FACED WITH SERIOUS ECONOMIC AND SOCIAL IMBALANCES OF A REGIONAL AND STRUCTURAL NATURE . THIS DELEGATION HAS STATED THAT THESE IMBALANCES SHOULD BE REMEDIED IN ORDER TO ACHIEVE A DEGREE OF HARMONIZATION CONSISTENT WITH THE OBJECTIVES OF THE COMMUNITY AND PARTICULARLY WITH THE REALIZATION OF ECONOMIC AND MONETARY UNION . THE IRISH DELEGATION HAS ASKED THE COMMUNITY TO UNDERTAKE TO EMPLOY ITS MEANS TO SUPPORT THE IRISH GOVERNMENT'S PROGRAMMES AIMED AT ELIMINATING THESE IMBALANCES AND TO TAKE FULL ACCOUNT OF IRELAND'S SPECIAL PROBLEMS IN THIS FIELD IN THE DEVELOPMENT OF A MAJOR COMMUNITY REGIONAL POLICY AT A LATER DATE .

2 . THE IRISH DELEGATION HAS SUBMITTED DOCUMENTS TO THE COMMUNITY DELEGATION INDICATING THE GENERAL DIRECTION AND THE INSTRUMENTS OF THE IRISH REGIONAL PROGRAMMES . THE IRISH DELEGATION HAS ALSO EXPLAINED HOW THE IRISH EXPORTING INDUSTRIES ARE SUPPORTED BY TAX RELIEF . IN THIS RESPECT IT IS ALSO A QUESTION OF MEASURES THE AIM OF WHICH IS TO DO AWAY WITH ECONOMIC AND SOCIAL IMBALANCES BY THE DEVELOPMENT OF INDUSTRY .

II

1 . THE COMMUNITY DELEGATION EMPHASIZES IN THIS CONNECTION THAT _ AS FOLLOWS FROM THE PREAMBLE TO THE TREATY OF ROME _ THE ESSENTIAL OBJECTIVES OF THE COMMUNITY CONSIST IN THE CONSTANT IMPROVEMENT OF THE LIVING AND WORKING CONDITIONS OF THE PEOPLES OF THE MEMBER STATES , AND THE HARMONIOUS DEVELOPMENT OF THE ECONOMIES OF THESE STATES BY REDUCING THE DIFFERENCES EXISTING BETWEEN THE VARIOUS REGIONS AND THE BACKWARDNESS OF THE LESS-FAVOURED REGIONS .

2 . THE COMMON POLICIES AND THE VARIOUS INSTRUMENTS CREATED BY THE COMMUNITY IN THE ECONOMIC AND SOCIAL SECTORS ARE A POSITIVE REALIZATION OF THE ABOVE-MENTIONED OBJECTIVES AND ARE FURTHERMORE LIKELY TO DEVELOP . THE EUROPEAN SOCIAL FUND HAS BEEN DIRECTED ALONG NEW LINES . THE EUROPEAN INVESTMENT BANK IS CONSTANTLY EXPANDING THE FIELD OF ITS ACTIVITIES . AT THE PRESENT TIME , THE INSTITUTIONS OF THE COMMUNITY ARE ENGAGED IN DISCUSSIONS TO DECIDE THE COMMUNITY INSTRUMENTS , WHICH IT IS POSSIBLE TO INTRODUCE , AND ACCORDING TO WHAT PROCEDURES , IN ORDER TO ACHIEVE THE OBJECTIVES OF THE REGIONAL POLICY .

THE AIDS GRANTED BY THE STATES , INCLUDING THOSE GRANTED BY WAY OF TAX EXEMPTIONS , ARE SUBJECT TO THE RULES LAID DOWN IN ARTICLES 92 TO 94 OF THE EEC TREATY . WITH REGARD TO STATE AIDS FOR REGIONAL PURPOSES IT SHOULD BE STRESSED THAT , UNDER THE TERMS OF ARTICLE 92 ( 3 ) ( A ) " AID TO PROMOTE THE ECONOMIC DEVELOPMENT OF AREAS WHERE THE STANDARD OF LIVING IS ABNORMALLY LOW OR WHERE THERE IS SERIOUS UNDER-EMPLOYMENT " MAY BE CONSIDERED TO BE COMPATIBLE WITH THE COMMON MARKET . EXPERIENCE SHOWS THAT THIS PROVISION IS FLEXIBLE ENOUGH FOR THE COMMUNITY AUTHORITIES TO BE ABLE TO TAKE INTO CONSIDERATION THE SPECIAL REQUIREMENTS OF THE UNDERDEVELOPED REGIONS .

TAX EXEMPTIONS _ IN COMMON WITH ALL OTHER AIDS EXISTING IN IRELAND AT THE TIME OF ACCESSION _ WILL BE STUDIED BY THE COMMISSION IN THE NORMAL FRAMEWORK OF THE PERMANENT EXAMINATION OF EXISTING AIDS . IF THIS EXAMINATION WERE TO REVEAL THAT IT WOULD NOT BE POSSIBLE TO RETAIN ANY PARTICULAR AID IN ITS EXISTING FORM , IT WILL FALL TO THE COMMISSION UNDER THE RULES OF THE TREATY TO ESTABLISH THE APPROPRIATE TIME LIMITS AND TRANSITIONAL PROCEDURES .

3 . HAVING REGARD TO THE ABOVE-MENTIONED SPECIAL PROBLEMS WITH WHICH IRELAND IS CONFRONTED , THE COMMUNITY DELEGATION PROPOSES TO ANNEX TO THE ACT OF ACCESSION A PROTOCOL ON THE ECONOMIC AND INDUSTRIAL DEVELOPMENT OF IRELAND .

II . DECLARATION MADE BY MR . P . J . HILLERY , MINISTER FOR FOREIGN AFFAIRS OF IRELAND , ON BEHALF OF THE IRISH DELEGATION

I AM PLEASED TO RECORD THE IRISH DELEGATION'S ACCEPTANCE OF THE TEXT OF THE PROPOSED PROTOCOL CONCERNING IRELAND WHICH HAS BEEN THE SUBJECT OF DISCUSSIONS BETWEEN OUR TWO DELEGATIONS AND THE BACKGROUND TO WHICH HAS BEEN SO CLEARLY SET OUT IN YOUR INTRODUCTORY STATEMENT . THE TEXT ADOPTED WILL ENABLE THE IRISH GOVERNMENT TO PROCEED WITH THEIR PLANS FOR ECONOMIC AND SOCIAL DEVELOPMENT IN THE KNOWLEDGE THAT THE COMMUNITY , THROUGH ITS INSTITUTIONS AND AGENCIES , WILL BE READY TO COOPERATE WITH US IN THE PURSUIT OF THE OBJECTIVES WHICH WE HAVE SET OURSELVES .

I HAVE ON A NUMBER OF OCCASIONS IN THE COURSE OF THE NEGOTIATIONS , DRAWN ATTENTION TO THE PROBLEMS POSED BY DIFFERENCES IN THE LEVEL OF ECONOMIC DEVELOPMENT IN AN ENTITY SUCH AS THE ENLARGED COMMUNITY . I HAVE ENDEAVOURED ALSO TO EXPLAIN TO YOU THE DIFFICULTIES WHICH A COUNTRY SUCH AS IRELAND , SITUATED ON THE PERIPHERY OF THE ENLARGED COMMUNITY , MUST OVERCOME IN ORDER TO APPROXIMATE ITS LEVEL OF ECONOMIC DEVELOPMENT TO THAT OF THE OTHER MEMBER STATES . I AM FULLY AWARE OF THE COMMUNITY'S WILL AND PURPOSE TO ACHIEVE THE AIMS SET OUT IN THE EEC TREATY OF ENSURING THE CONSTANT IMPROVEMENT OF THE LIVING AND WORKING CONDITIONS OF THE PEOPLES OF THE MEMBER STATES AND THE HARMONIOUS DEVELOPMENT OF THEIR ECONOMIES . THE PROTOCOL ON WHICH WE HAVE REACHED AGREEMENT TODAY IS A CONVINCING DEMONSTRATION OF THE COMMUNITY'S DETERMINATION TO GIVE REAL CONTENT TO THESE FUNDAMENTAL AIMS . THIS PROTOCOL WILL BE AN INSTRUMENT OF PRACTICAL VALUE IN ENABLING MY COUNTRY TO PLAY A FULL PART WITHIN THE ENLARGED COMMUNITY IN ACHIEVING THESE AIMS . ITS EFFECTIVENESS FOR THIS PURPOSE WILL BE GREATLY ENCHANCED BY THE DEVELOPMENT OF A COMPREHENSIVE COMMUNITY REGIONAL POLICY . IN THIS CONNECTION MAY I SAY THAT I AM HEARTENED BY THE EFFORTS BEING MADE TO DEAL WITH THIS IMPORTANT ISSUE AS PART OF THE EVOLUTION OF THE COMMUNITY .

IN IRISH CIRCUMSTANCES , THE EFFECTIVENESS OF DEVELOPMENT MEASURES , WHETHER AT THE NATIONAL OR AT COMMUNITY LEVEL , MUST BE JUDGED BY PROGRESS IN THE REDUCTION OF UNEMPLOYMENT AND EMIGRATION AND THE RAISING OF LIVING STANDARDS . THIS IS ESSENTIALLY A MATTER OF PROVIDING FOR OUR GROWING WORK FORCE THE NECESSARY JOB OPPORTUNITIES WITHOUT WHICH A SUBSTANTIAL PROPORTION OF OUR MOST VALUABLE ECONOMIC RESOURCE WILL REMAIN UNUSED OR BE LOST THROUGH EMIGRATION AND THE PACE OF ECONOMIC DEVELOPMENT WILL BE RETARDED .

MY GOVERNMENT WILL BE GRATIFIED THAT OUR DISCUSSIONS TODAY HAVE SHOWN THAT IRELAND'S ACCESSION TO THE COMMUNITY WILL ENABLE THEM TO MAINTAIN THE DRIVE TOWARDS THE REALIZATION OF THEIR AIMS AS RECITED IN THE PROTOCOL . I HAVE PARTICULARLY IN MIND HERE THE CONTINUING GROWTH OF INDUSTRY WHICH IS CENTRAL TO OUR GENERAL AIM OF ECONOMIC EXPANSION . IT IS OF VITAL IMPORTANCE TO US THAT PROGRESS IN THIS AREA BE MAINTAINED THROUGH THE APPLICATION OF EFFECTIVE MEASURES OF INDUSTRIAL PROMOTION . I UNDERSTAND THAT , LIKE ANY OTHER INCENTIVE SCHEME , OUR INDUSTRIAL INCENTIVES WILL COME UP FOR EXAMINATION UNDER COMMUNITY RULES AFTER ACCESSION . I NOTE WITH SATISFACTION THAT YOU RECOGNISE THE NECESSITY FOR AN INCENTIVE POLICY IN IRELAND BUT THAT QUESTIONS MAY ARISE ABOUT THE PARTICULAR FORMS OUR SCHEME OF INCENTIVES HAS TAKEN WHILE WE HAVE BEEN OUTSIDE THE COMMUNITY .

I WOULD LIKE TO DRAW YOUR ATTENTION TO THE FACT THAT THE QUESTION WOULD ARISE IN THIS CONNECTION OF THE COMMITMENTS WHICH WE HAD PREVIOUSLY ENTERED INTO . WE SHALL , OF COURSE , HAVE TO HONOUR THESE COMMITMENTS BUT WE SHALL BE READY TO DISCUSS IN ALL ITS ASPECTS THE CHANGE-OVER TO WHATEVER NEW INCENTIVE SYSTEM IS DEVISED AND WE SHALL COLLABORATE IN SOLVING THESE PROBLEMS IN AN APPROPRIATE WAY .

I AM FULLY SATISFIED FROM WHAT YOU HAVE SAID ABOUT THE FLEXIBLE NATURE OF THE RELEVANT TREATY PROVISIONS THAT IN THE EXAMINATION OF OUR INCENTIVES THE COMMUNITY INSTITUTIONS WILL TAKE FULL ACCOUNT OF OUR SPECIAL PROBLEMS . I AM ALSO SATISFIED IN THE LIGHT OF THE IDENTITY OF AIMS OF BOTH THE IRISH GOVERNMENT AND THE COMMUNITY THAT IF ADJUSTMENT OF THESE INCENTIVES IS CALLED FOR , THE IRISH GOVERNMENT WILL BE ABLE TO MAINTAIN THE GROWTH OF IRISH INDUSTRY , AND ACHIEVE A CONTINUOUS IMPROVEMENT IN THE LEVEL OF EMPLOYMENT AND LIVING STANDARDS .

FINALLY , MAY I SAY IN CONCLUSION THAT I APPRECIATE THE SYMPATHY AND UNDERSTANDING WHICH THE COMMUNITY HAS SHOWN IN ITS APPROACH TO AND EXAMINATION OF THE QUESTIONS OF OUR REGIONAL PROBLEMS AND INDUSTRIAL INCENTIVES WHICH ARE OF THE GREATEST IMPORTANCE TO MY COUNTRY . THE AGREEMENT WHICH WE HAVE REACHED AUGURS WELL FOR OUR FUTURE COOPERATION WITHIN THE ENLARGED COMMUNITY IN PURSUIT OF THE FUNDAMENTAL AIMS OF THE TREATY . I SEE IN THIS FUTURE COOPERATION THE MEANS BY WHICH WE IN IRELAND CAN BEST ACHIEVE OUR NATIONAL ECONOMIC OBJECTIVES .