CONFIDENTIAL

BRIEF NO. G.1 EUROPEAN ECONOMIC COMMUNITY

J

PART III

BACKGROUND NOTES:

GENERAL

Government policy was stated in The Queen's speech on

21 April, 1966 in the following terms:

2.

My Government would be ready to

enter the E.E.C. provided essential

British and Commonwealth interests

were safeguarded.

The main economic reason for wishing to seek entry was

advanced by Mr. Brown in the House of Commons on 16 November,

1966 as follows:

"If the prosperity of the country is to be assured, and

British industry is to plan for the expansion that is

fundamental to this, we must have a large market outside

of these shores,

a market to which we have immediate and

unrestricted access. We are a country of about 54

million people. Our membership of E.F.T.A. almost

doubles the size of that, to nearly 100 million. But

an expanded Common Market, which would include not only

ourselves and our E.F.T.A. colleagues and the Irish

Republic, but also those countries who are now members

of the E.E.C., would be a market of about 280 million".

History of probe

3.

In his statement in the House of Commons on 10 November,

the Prime Minister said that H.M. Government had conducted

"a deep and searching review of the whole problem of Britain's

relations with the E.E.C., including our membership of E.F.T.A.

and of the Commonwealth".

The Prime Minister went on:

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