TNAG-0530-FCO40-625-Trade-union-relations-in-Hong-Kong-industry-1975 — Page 132

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weak but the oil producing countries have thrown a protective mantle over them and all would continue to think and act as one. The influence of the Arab oil producing countries meant that issues cannot be resolved on their merits. Energy was one such issue. The Group have made it clear that energy problems could not be settled except as part of the general agreement on the new Inter- national Economic Order. This concept presently involved such unacceptable propositions put forward by the Group of 77 as the destruction of GATT, the abolition of the IMF and the undermining of existing trade agreements. The new International Economic Order had been taken up by the Prime Minister at the Commonwealth Prime Ministers' Conference in Jamaica where he stressed the need to work towards a general agreement on commodities which would have the effect of evening cut price fluctuations by the use of stabilising funds. We would like to pursue this same plan within the Community and his aim was to bring the Community and the Commonwealth countries closer together. This is something positive Britain could do, though there are many difficulties to be discussed.

3. The second area in which Britain would like to pursue an active policy within the Community was energy. Here we are in a strong position since we produce half of the Community's coal supplies and are a potential oil producer. Britain therefore has an interest in the level of oil prices, especially as our likely costs of production are much higher than those of the Middle East countries. It is in Britain's interest, therefore, to seek price stability and a minimum price. He wanted to enter into discussions with the Community on oil prices on the basis of countries being guaranteed a price which would adequately cover our investment. British policy would remain that we control our selling price and where we sell.

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On the institutional side, the Parliamentary Labour Party had now decided to send members to Strasbourg. He had read with interest the statements by Mr Murray and Mr Jones that the TUC should review its past policies and should now participate fully in the business of EEC institutions. He hoped that the TUC would soon be in a position to take their seats in the Economic and Social Committee, if possible at the meeting scheduled for September. He understood that Governments nominated representatives but naturally the TUC would be consulted before any trade union represen- tatives were put forward. In his view, Britain's task is now to take part fully in the work of the Community's institutions and to use them to our advantage.

CSCE

5. The work of the CSCE was now nearing its conclusion. The Soviet Union were obviously anxious that the final conference should be held in July. The conference would probably result in sanctifying (if that was the right word) existing territorial boundaries in Europe. This would be a major success for the USSR. For our part, Britain wanted agreement on a formula for changing international boundaries by peaceful means and in accordance with

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