of Government in Dublin that we would study the methods they have used, whether by environmental controls, planning controls, industrial develop- ment certificate controls, or other means.
Were this to fail, we could still have recourse to extending public owner- ship or to proposing treaty revision. Concerning this continuing objective, the reference in the manifesto objective to fiscal policies has not proved difficult. There are proposals for certain measures to harmonise the structure of some indirect taxes, but any which were objectionable to us would require our agreement. I will come to this again on VAT.
OBJECTIVE FIVE
Capital movements
The manifesto commitment says:
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Equally we need an agreement on capital movements which protects our balance of payments and full employment policies.
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We have made use of the relevant Articles of the Treaty of Rome to revert to broadly the same exchange control régime as applied before entry. We can continue to take action under those Articles to protect our balance of payments.
OBJECTIVE SIX
The Commonwealth and developing countries
The manifesto said:
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The economic interests of the Commonwealth and the developing countries must be better safeguarded. This involves securing continued access to the British market and, more generally, the adoption by an enlarged Community of trade and aid policies designed to benefit not just associated overseas territories in Africa, but developing countries throughout the world.”
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I have referred to Commonwealth sugar and New Zealand dairy products. Another major achievement was the Lomé Convention. What was achie- ved--and a great tribute is due here to the work of my right hon. Friend the Minister for Overseas Development-was the transformation of a pater- nalistic arrangement with a restricted range of mainly ex-French and Bel- gian Colonies or Territories, in which they had to offer the Community reciprocal trade benefits, into a relationship based on co-operation with 46 countries in Africa, the Caribbean and Pacific-22 of them from the Com- monwealth. The new convention governs access without requiring recipro- city, a completely new scheme for stabilisation for commodity earnings, and much increased aid. The convention has rightly been described as his- toric. For this and other reasons, almost all Commonwealth countries, ad- vanced and developing, have expressed their hope that Britain will stay in the Community.
As to the Asian countries such as India, Sri Lanka, Bangladesh and Paki- stan, a good deal has been achieved for them already. They have benefited from EEC emergency aid to those countries most seriously affected by the oil price rises. India has an agreement with the EEC, and the other three are negotiating them. The Generalised Scheme of Preferences has been much improved, and earlier this month the Council of Ministers agreed to work for continuing improvements to the scheme, with particular emphasis on the interests of the poorest developing countries, including those of the Indian subcontinent.
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