Western Europe into two economic camps.

This is particularly

portant if Western Europe is to play an effective part in

world affairs.

11.

There are two points which I want to stress.

Firstly,

we are not taking the initiative because we regard membership

of the Community as a means of overcoming our economic

difficulties. As the Prime Minister said in his statement

on 10 November, it is vital that we should enter only when we have

secured a healthy economy and a strong balance of payments,

with the pound standing no less firm and high than it is today.

Secondly, our initiative does not imply in any way a lessened

interest in the Kennedy Round. This remains of the highest

U.K

importance to this country as a world trading nation and the

Prime Minister and Foreign Secretary are stressing the vital

need for a forthcoming attitude in the Kennedy Round in their

talks to the Heads of Government of the Six.

it does to

in ware

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