proposals, and which satisfactorily met what we then proposed, involving a refund of up to £125 million a year.
OBJECTIVE THREE
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Economic and Monetary Union
The manifesto commitment is as follows:
we would reject any kind of international agreement which compelled us to accept increased unemployment for the sake of maintaining a fixed parity. . . We believe that the monetary problems of the European countries can be resolved only in a worldwide framework."
Since that commitment was made there has been a major change in the attitude of other European Governments to the practicability of achiev- ing EMU by 1980. As a long-term objective it was restated in the Paris communiqué, but for all practical purposes it has been tacitly abandoned. For example, the second stage, due to start on 1st January 1974, 15 months ago, has never been adopted and practical work has been virtually at a standstill for a long time.
There is no prospect of our coming under pressure to agree to an arrangement, whether in relation to parity commitments or otherwise, threatening the level of employment in Britain. As for EMU remaining as a long-term Community objective, its realisation in the foreseeable future, as I hinted at Question Time, is as likely as the ideal of general and com- plete disarmament which we all support and assert.
OBJECTIVE FOUR
Our Election manifesto of February 1974 stated our objective as:
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The retention by Parliament of those powers over the British economy needed to pursue effective regional, industrial and fiscal policies."
Regional Policy
Since the turn of the year, and in the context of our renegotiations, the Commission has had an intensive discussion with us and other member Governments and has now formulated the principles under which it proposes to implement its rôle in the co-ordination of regional aids.
The Commission's hierarchy of assisted areas conforms to ours. No forms of national aids are ruled out in principle, and there is no interference with our existing regional aids. There is a particular problem relating to assistance given by the Highlands and Islands Development Board, for which a derogation is being obtained. In discussing the way in which regional aids might be changed to meet new circumstances, the Commission has furthermore acknowledged that national Governments are the best judges of what is required in their own country and that the Commission will be prepared to consider changes in national aid systems compatible with the Common Market, when they are justified by problems of employ- ment, unemployment, migration and by other valid requirements of regional development policy which constitute essential national problems. The Com- mission has further accepted that urgent action by Governments may be necessary and that treaty procedures will not hold this up.
Industrial Policy
We have not met with any serious difficulties from the EEC in the
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