The UK believes that a sound transatlantic relationship is central to Europe's own interests defence and economic. Our relationship
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with the other superpower has developed in a way we could hardly have foreseen ten years ago. At the time of writing, we are in the throes of preparation for the third visit to this country by Mr Gorbachev. This fact speaks for itself. Mr Gorbachev is,
in my
opinion, a man of pragmatism. He finds he can do business with the
UK.
9. But it is on Western Europe that I would like to dwell for a time. I shall begin closest to home in Europe. Membership of the European Community is central to this Government's vision of Britain's role in the world. We are moving into an age where states increasingly to combine their resources and influence, recognising that this will best serve their and the world's interests. In this respect, the European Community is leading the way. In so doing, the Community has a responsibility to fight for the causes of common sense and freedom. The UK has worked to promote them in Community
affairs.
10. These principles have found particular expression in the budgetary field, where sensible measures supported by both Britain and France have helped to transform the way the finances of the Community are run. Pressure for stricter budget discipline and reform of the Common Agricultural Policy has produced concrete, common sense results benefitting individual citizens, both consumers
and farmers - through lower prices
through greater certainty about future market conditions. The package of measures adopted in the dairy sector during the British Presidency in 1986 introduced order to the market, stabilised production, and cut surpluses. More significant still, the February 1988 Brussels Summit agreed a series of legally-binding stabilisers for individual crops, and a binding
financial guideline to control overall agricultural spending.
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11. We should not be complacent. There remains a lot to be done,
particularly in agriculture, where both Britain and France recognise
the need to maintain the steady pressure for common sense reform.
But these are real achievements, which have given the Community the
firm financial footing it requires to face up to the policy