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Communityto union:
EDWARD HEATHt
Theapproachtopoliticalunity
I believethatthe Communityshould develop a formof unifiedgovernment
thatis
I
talked
to
Heinrich
von
Brentano
about
this
in
the
late
1950s
suitedto itsown needs.
whenhe was ForeignSecretaryof theFederalRepublicof Germanyand he said that,
when we startedon thispath with the formationof the European Coal and Steel
Communityin 1951,he had in minda pictureof a politicalcommunitybeingformed
fora new treaty.But thenhe
advisersworkingout theframework
by constitutional
This is thetextoftheInauguralLothianMemorialLecture,givenon 3 Nov. 1987at ChathamHouse
and sponsoredby the Lothian Foundation.The Foundationwas establishedin the summerof 1987 to
thelifeand workofPhilipLothian,1882-1940,and to promotebetterrelationsbetweenthe
commemorate
the
peoples oftheEuropeanCommunityand betweentheEC and thepeoplesofothernations,particularly
United States.
t The Rt Hon. Edward Heath MP was BritishPrimeMinister1970-4.
Affairs
0020-5850/88/2/0199-09
$3.00 (C 1988International
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EdwardHeath
201
inCopenhagen.
Wetherefore
takepartintheconference.
Theydulyarrived
spentthe
morningof 14 Decemberdecidingwhetheror not we shouldmeetthem.By
wehaddecidedthatwewouldmeetthemandthatitwouldbetheForeign
lunch-time
whattheForeign
Ministers
whowouldmeetthem.Wespenttheafternoon
discussing
Ministers
shouldsayto themandby6 p.m.itwasagreedthattheForeignMinisters
The nextmorning
we metwithnineverytired
wouldonlylistenand saynothing.
Ministers
hadn'tarrived
becausetheirForeign
until2 a.m.andhad
ForeignMinisters
keptourstalking
untilbreakfast.
Bythattimetheworld'spresshadarrived
andso we
at veryshortnoticeof coursebecausethatwasn'ttheirjob, to
askedour officials,
producea communique.
Whereupon
theyallwrotedowntheviewsoftheircountries
andwewerefacedwiththistoapproveas a
on everysubject,
pinnedthemalltogether
was disastrous.
As a resulttheconference
Butwe diddecidethatwe
communique.
wouldthenhaveto meetthreetimesa year.Andso whatwe didwasto establish
an
orinstitution,
whichmettheneedsofthetimeintheformoftheHeads
organization,
The EuropeanCouncilnow meetstwicea yearand is a
of Government
meeting.
oftheCommunity.
Andthis,I believe,is thewayin
institution
andaccepted
regular
to developin thefuture.
whichwe shallcontinue
Thepoliticalpurpose
Whatthenabouttheconditions
in whichwe develop?I sometimes
haveto remind
myselfthatfewpeopleundertheage of 60 haveanydirectrecollection
of what
inthecreation
happened
oftheCoal andSteelCommunity.
Andwhatisso constantly
isthatthecreation
forgotten
ofoftheCoal andSteelCommunity
wasa political
actfor
a politicalpurpose,and thatthe communities
are politicalinstitutions
which
themselves
existfora political
purpose,a purposewhichremains
political.
Thismust
alwaysbe theunderlying
themeoftheCommunity
inEurope.Thepolitical
purpose
wastoprevent
FranceandGermany
everfighting
again.It wasputintooperation
by
useofsupranational
making
powertocontrol
therawmaterials
oftheweaponsofwar,
to prevent
themeverbeingableto armthemselves
individually
again.Thatwas the
outbyeconomic
means.Therefore
purpose,carried
whatwearedoingintheeconomic
and it is thiswhichrequires
sphereis in factthemeansto politicaldevelopment,
to be brought
hometo people.
constantly
The founding
fathers
werereallyverywisewhentheycreated
theCommunity
sui
generis.But thereis one thingtheyomitted.Thereis no one who speaksforthe
as a whole.You canhavemeeting
Community
after
andyoumayevenreach
meeting
an agreement.
Butas soon as thePrimeMinisters
or theForeignSecretaries
or the
Ministers
ofAgriculture
ortheFinanceMinisters
getbackto theirparliaments,
what
do theydo?Theyproclaim,
'LookhowI bashedtheothers!
LookwhatI didtothem!
Aren'tyouproudofthefactthatwehaveblockedtheminsomething
orotherandwe
ourselvesrefusedto takepartin something
else!' That isn'tthepurposeof the
Nor is it an attitude
we can tolerateanylongerin our own British
Community.
ThepurposeoftheCommunity
is tooperatetogether
government.
as a community.
And thatmeansthateverysettlement
hasgotto be brought
aboutby consensus
to
whicheachmember
makesa contribution
andfromwhicheachgainsa benefit.
To holduptheprogress
oftheCommunity
is,inmyview,completely
unjustifiable.
inBritain.
Butthatapproachhashada lotofsupport
It is something
fromwhichwe
havebeensuffering
eversincethebeginning
of1963.WhenGeneralde Gaullevetoed
our entryinJanuary
he
did
more
than
1963,
stopBritain
joiningtheCommunity.
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market
Theinternal
So we mustinevitablyfaceup to thepoliticalimplicationsof thedevelopmentof the
economicsideoftheCommunity.WiththeSingleEuropeanActwe havenow gotthe
Treatyamendedto authorizean institution-theCouncil of Ministers-whichwill
in theCommunityby 1992.We havegotto havethe
abolishall theinternalrestrictions
whenI listenedata conference
nearSalzburg
willpowerto enforcethat.I was horrified
in August 1987 to Commissionmembersand otherssayinghow theyhopedthatby
Thatis notgood enough.We have
1992we shouldhavecarriedout our undertakings.
got to have the will to say thatthisis goingto be done by 1992. That is how the
Communitymade progressin thepast. Thatis whathappenedinJanuary1962when
negotiationsbeganon theCommon Agricultural
Policy: theclockwas stoppeduntil
oftheCAP. Thatis theattitudethathas got
thoseministers
agreedon thefundamentals
in theCommunity,and particularly
to be takenabout futuredevelopments
aboutthe
Communityin 1992. The willpowerhas gotto be shownand eachofus, whateverour
particularviews at the momentabout federalism,has got to work to ensurethat
and is put into practice.
willpoweris demonstrated
1. The presidentialcandidatesnow emergingin the United Statesmay appearto signala haltto this
inNov. 1988,and itspoliticalinfluence
trend;butCaliforniawillcontinueto be thechiefbattleground
will
continueto grow.
EdwardHeath
203
Themonetary
system
The samethingappliesto themonetarysystemandto EuropeanMonetaryUnion and
theECU. The EuropeanMonetarySystem(EMS) haswithstoodmanyshockssinceits
creation,includingtheworldshockofOctober 1987whichithaswithstoodfarbetter
in notplayingour full
thanothercurrencies.We in Britainarecompletelyunjustified
in
the
EMS.
It
is
an
for
Britain
and
we
part
impossibleposition
oughtto be ashamedof
it, because we cannot expect othercountriesto take any notice of our views on
so longas we arenotpreparedto takeourfullshare
monetaryor eveneconomicaffairs
of theresponsibilities
in theEMS. How can we expecttheGermans,or theGerman
we say about
banks,or theGermanFinanceMinisters,to takeanynoticeofanything
to takeanynoticeof whatwe
theirlevelof interestrates,or theGermangovernment
say about agriculturalpolicy, when we are not preparedto take a fullpart in the
monetarysystemof Europe as a whole?Thereis no reasonwhytheyshouldtakeany
to thinkthatwe can exerciseinfluenceinside
noticeof us. It is completelyunrealistic
in it. This I
the Communityifwe are notpreparedto acceptour fullresponsibilities
and theBritishgovernment
mustbe broughtto
believeto be absolutelyfundamental
changeits attitudeand view on thesethings.
The UnitedKingdomhas spent,and stillis spending,fartoo muchtimeand energy
in the Communityinsistingon comparativelyminor changes to the budget and
of so manyotherthingswhichrequireto be done
budgetarysystem,to thedetriment
the developmentof technology-in the Communityas a
urgently-particularly
has againrefusedto makean increasein
whole. The factthattheBritishgovernment
spacedevelopmentis anothermarkagainstus in theeyesoftherestoftheCommunity,
These arethingsin whichwe must
as well as beingagainstour own nationalinterests.
recognizethe interestsof the Communityas a whole.
A central
bank
Again, theEMS mustbe followedby a centralbankingarrangement.
We cannotbe
expectedto play a prominentpartin thatifwe are not a fullmemberof theEMS. I
suggestedthis as long ago as 1973, when on 1-2 March I had the meetingwith
ChancellorBrandtwhichcoincidedwiththedollarcrisisof thatspring.I remember
verywell thatthe Chancellorhad to decide with his cabinetwhat to do about it.
was pouringintotheDeutschmarkand he thoughthe couldn'tstandit. I
Everything
told him he should go on and thathe could standit perfectly
well, and when the
speculatorsgot theirfingersburntwe shouldgettenyearsof peace and quiet on the
currencymarkets.But theChancellorwas unableto persuadehis cabinet,so I made a
ratheremotionalspeechatdinnerinwhichI saidthatiftheGermanswerenotprepared
to taketheburdentheonlythingwas forus allto pool ourreservesandto havea central
bankingsystemand to establishthisstraight
away. I said thatwe would supporthim
and thenwe shouldbe able to musterall our resourcesto fightthespeculation.I was
afterwards
congratulated
by everyonepresent,includingmy PrivateSecretary,who
sentbacka longcableto myofficeand theTreasury.The nextday I gota
immediately
messageback fromthe Chancellorof the Exchequersayinghe thoughtthiswas a
splendididea-it was veryimaginative,
showed greatvisionand he only wantedto
pointout two things:ofcoursehe was in favourofpoolingthereservesofthemember
countriesbut he just wantedto remindme thatat thatmomentwe didn'thave any
reservesand, secondly,his officials
wantedto knowwhere,iftherewas goingto be a
centralbankingsystem,the bank was goingto be situated.
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EdwardHeath
205
EastAsia
Suchis thechallenge.Butthechallengeis evengreaterthanthat.Thereis another,very
powerfulreason-looking intothefuture,further
thanthenexttenyears-why the
European Communitymustbringabout theunifiedeconomicdevelopmentwhichis
so essential.I said thattheChineseareexpandingtheireconomyat a remarkablerate.
Twenty-fiveper cent of all China's activityis connectedwith Japan and that
proportionis increasing.We in Europe have not yet taken full advantageof the
and neitherhavetheAmericans.So whatwe aregoingto see fortherest
opportunities,
of the twentiethcenturyand, I believe,well into the nextis a combinationof the
technologyand inventiveness
of theJapaneseand theirsalesdrive,whichis based on
thefactthatso manyoftheirworkershavecontracts
forlife,so thatto selland sellis the
only way availableto keep unitcosts down in a recession.And thatsales drivecan
combine with all the Chinese raw materialsand a Chinese labour forcewhich is
becomingmore and more skilledin schools and universitiesand is drawn froma
populationwhichbytheyear2050 willbe 1.5 billion.Thatis a formidable
challengein
technology,raw materials,skilledlabour forceand sales drive. Those thingsput
togetherare goingto give us the most difficult
taskwe have everhad.
Europe's response
I come backto Europe in thefaceofthesedevelopments
becauseI thinkthattheymay
bringus up againstrealityin thesamewaythattheimmediatepostwarperioddid. The
presentcrisis,fromwhichpeople can see no easy way out, may bringus up against
reality.CertainlyiftheUnitedStatesdid havea Presidentanda Congresswho decided
to bringdown the budgetdeficit,thatwould have a verysterneffecton the world
in theAmericanbalanceof trade.The successful
economy,as would any redressing
countriesof the Pacificmay bringus up againstreality.The factthatin the Islamic
world we now have some 800 millionpeople becomingmore and more militant
Muslimsmaybringus up againstreality.And we in Europe willthenhaveto facethe
factthatwe haveonlygota futureifwe moverapidly,notonlytowardstheeconomic
unityI have been discussingbut also towardspoliticaland militaryunity.
andforeign
Military
policydevelopment
Why does Europe appearto therestof theworldto have lost its confidenceand its
momentum?It is because they know that we are not politicallyor militarily
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EdwardHeath
207
to ourmembership,
letalonemakingarrangements
forneutralcountriestoloin us. We
should say politelybut veryfirmlyto themthatwe will have tradingrelationswith
of thefullCommunity
themas we havealreadybutwillnot allow themmembership
because we standforunityand fora foreignand militarypolicywhichtheyare not
able, to our regret,to accept.We willcarryon thedevelopmentoftheCommunityin
thisdirection,whichis the way it was alwaysintendedto go.
I suggestedat Harvardin theGodkinlecturesin 1968('Old world,new horizons')
nucleardeterrent.
At thetimewe had much
thatwe shouldhavea jointFranco-British
now we havelittleornothingto offerthem.WhenI
to offertheFrench.Unfortunately
came into officeas PrimeMinisterin 1970, PresidentNixon agreedthatifwe had a
joint Franco-Britishdeterrenttherewould be no objection to handingover the
fromAmericansourceswhichwas theninBritishhands.
technicalnuclearinformation
decisionbytheAmericanPresident.I do notknowwhether
Thatwas a veryimportant
one todaywould makea similardecisionor be as courageousas PresidentNixon was.
said 'I don't thinkI can carryit, not at thisstage
PresidentPompidou unfortunately
anyway'; and thenPresidentPompidou was takenfromus.
I believethattheanswerstillliesin a jointFranco-British
nucleardeterrent.
We are
seeing Franco-Germanmilitarydevelopmentsin Europe. Britainought not to be
sittingon the sidelinessaying'Well, let's wait and see if anythingcomes of it.' We
ought to be in on it fromthe beginning.The WesternEuropean Union is at the
momentnot a suitableforumforthe creationof a commondefencepolicy. It was
createdforthespecificpurposeofbringing
Germanybackintothefamilyofnationsas
faras''themilitarytreatieswere concerned,and it servedthatpurposeadmirably.I
myselfused it forotherpurposesin the 1960s in orderto explainour views about
joiningtheEuropean Community.But it is not,in myview,themeansby whichwe
can createthe foreignpolicy and the defenceof Europe.
ifitis stilldifficult
to putthisburdenon
On theotherhand,lookingatitpractically,
the
a
theEuropeanCouncilor
Communityas whole,thenitis possibleto see theWEU
developingto thepointwheretheotheractivecountriesin theCommunityjoin itand
intheEuropeanCommunity.ThatI can see as
itinfactbecomesthefourthcommunity
of
the
a possiblepracticaldevelopment
and foreignpolicyside ofEurope as a
military
whole.
We in the United Kingdomhave got an enormousresponsibility.
Our place is in
Europe. Our policymustbe European.We arefriends
andalliesoftheUnitedStatesas
Europeans,and thatis basic. Butwe mustno longertryto ridebothhorsesat thesame
or
time,foras we willincreasingly
see, we haveno influenceeconomically,militarily
politicallyon theUnited States.These are realities.We mustfacethemand make a
successof the power we can use, whichis thatof Europe.