PM
Yes, they are growing … . the more that they come over here and we go over there, the more the Common Market will become a reality, particularly with the young people because you want for them to feel that they can travel with qualifications all over the Common Market, much more than old fogies like us did. They are better at languages, of course, than we are. That's the great advantage that they have. Right, now … . that's a fascinating thought, because a lot of my family's in farming, so we are always interested in everything that's going on, and of course really we have got on top of the Common Agricultural Policy now, we couldn't go on with the surplus, so I'm afraid we had to spend quite a lot of money on selling them quite cheaply, because as long as they overhung the market it just wasn't going to be all right. But farming is changing, fundamentally changing, if you are getting much more specialist farming, people don't eat, or they are more … . they eat, and that really … . and of course it is much more environmentally sensitive now … . Why choose the Midlands? Well, I wanted to get out of Number 10, for very obvious reasons and I wanted to come and see the work that this College is doing, and so this enabled us to … . be out for this morning and this afternoon, to get back to economic debate later today, and we'll do something else in the evening. This is a very good part of … . today we are doing the importance of farming, and how farming has changed … . Farming is a real hard based industry, and the importance of keeping the costs down and the importance of equipment and so on, and then we are going to small business afterwards, because … . to be absolutely clear that the Common Market isn't only for big business it's for small businesses too.
Q
Do you think there will be more cause for a freer market in agriculture after the elections, assuming that the Conservatives return the most people … . with market forces operating more broadly rather than interventionist?
PM
Every country … every industrialised country subsidises agriculture in one way or another. Everyone. Now, the United States, ourselves and Japan already, as you know, in the Economic Summit, have been talking about this, and we have all been discussing how we shall negotiate these matters in the GATT, and it is on the table, but the United States subsidises agriculture, we subsidise ours, Japan subsidises hers even more, and also there're levies which, you know, on products coming into the Common Market from outside. What we have to be careful is that we don't upset the economies of the Third World countries, because some of them can only grow food as exports, and so obviously we have to be very mindful of that, because unless they can export their food to the advanced communities like ours, they have no means with which to buy the engineering equipment. So there's [end p1] something developed called the Producers' Subsidy Equivalent … . Different countries have different methods of really quite, very well in the Community because we have got a lot of the surpluses down, butter surplus is right down, the powdered milk surplus is well down, of course, we always need some of that … . the thing you get for disaster areas, very very quickly, and some of the arable surplus is down, so we have got, steadily got that down, which gives much better opportunities for the future, and it is important now to have a look at … . their costs, to use the by-products, and some of the breeds you saw, that Belgian Blue is a very interesting breed, apparently the beast grows at much greater concentration and much less fat, and greatly in demand.
Q
What about the European Campaign and how that is going?
PM
Well, the European Campaign is going quite hard in the constituencies, it's not really getting a great deal of publicity yet, and one's worry is that not everyone realises that the Election is coming up quickly. It's for the European Parliament, and they really are involved, and really our job is to get the information across.
Q
The polls are showing Labour in the lead at the moment, Prime Minister. If that continues at the end of Campaign, would you see it as a verdict on domestic policies or on your attitude to Europe?
PM
No, I think what the polls are showing is that the bigger proportion of Labour people may be going to turn out to vote. Obviously what I am concerned about is that the bigger proportion of our people turn out to vote, so it is very much an awareness campaign, very much an awareness campaign. This is a particularly good example of really what Europe is all about. We have some French young people here, anyone who is qualified from here could practice farming anywhere in Europe, some of the research I have been looking at is research jointly financed, some from Europe and financed from here as well. Farming has got much, much more science-based, both in the breeds, both in the application of pesticides and fertiliser, which you put on just enough and no more, but you have got to have both, and of course in dealing with your waste products and in dealing with specialised products. [end p2]
Q
Would you support ideas like ERASMUS for European cooperation for research in agriculture?
PM
Yes, indeed we do, I don't think we have any ERASMUS here at the moment. Yes we do.
Q
But you think there is a role for the Community in setting the pace in agriculture perhaps?
PM
There has to be, it's a Common Agricultural Policy. I mean, when we went into the Community don't forget, we gave up power on doing things in agriculture solely on our own, everything has to be negotiated with the Common Agricultural Policy, and we've learned a lot doing it. First of course we've got far too many surpluses, we're now getting those down, and then we learned how to deal with the milk surplus which is by quota, so the milk is doing very much better now, Christopher ProutChristopher, isn't it? The farmers who are in milk have had quite a good year. The farmers in arable have had a much more difficult time, more difficult here than in Europe because we've had rather bad weather, both last year and the year before.
Q
… about it being a verdict on your ten years since your election?
Q
(inaudible).
Q
The Peking situation this morning, it seems we're pulling a lot of British people back from the embassy, and British people living in …
PM
Our embassy has been very very active indeed in trying to get people out who want to leave, and we have made facilities available for the Peking airport, and the planes are there, and they're tying obviously to get our people to the airport now. I'm not quite sure if they've got there, but certainly things appear to be working normally, according to what I was told when I came out first thing this morning, at Peking airport. I think most of our students have managed to get away now, and I think some of our other people think it is best to come out for the time being. A very good embassy, SirAlan Donalda very good ambassador we have there. [end p3]
Q
Is there anything more, Prime Minister, that the British Government can do to perhaps stabalise the situation?
PM
It is very difficult to know who to work through. I think the whole world is making its views known, and really the things we've seen are things we never expected to see again. I think this must have an effect, because I think every country in the end is interested in its international reputation. With regard to the particular things about Hong Kong, obviously we are looking at maximum flexibility under our passport laws.
Q
What kind of numbers might that involve?
PM
I don't know. We're looking at that. I set work in hand yesterday and this morning before I came away, because we think that it is important that Hong Kong remains prosperous, it's important that it continues to have the way of life which it has been with us, and the point of negotiating was that that way of life will continue, and that it will be a capitalist system. And I think what we have now, is that we have more very influential people and people with particular skills that if needed will stay there, but they know that they have a kind of possibility of coming to Britain, but it's a kind of insurance policy, and they are much more likely to be able to persuade themselves to stay in Hong Kong. Hong Kong is prosperous, there are going to be a lot of people living there. It's important to the people in Hong Kong, it's important to China.
Q
Is there an extension to the number who might be allowed into the country?
PM
Well, really that is what flexibility means, that we use the procedures available a bit more generously than we have in the past because we think it necessary for the future of Hong Kong and for the reassurance of the people there. Because we are faced with a different situation, and when you are faced with at different situation you have to bring in different remedies.
Q
Prime Minister, is there any question of seeking a renegotiation of the agreement with China on Hong Kong?
PM
Well no, we negotiated the agreement and in fact it is registered with the United Nations and we are going ahead with that [end p4] agreement, and we are negotiating the Basic Law now, because it is very very important that we get the Basic Law right, which is why there is so much consultation, because that Basic Law will hold after we have gone. There is also what is called a joint liaison committee, which we operate, through which we liaise. As an extra bit of reassurance, we were very pleased when we managed to negotiate that that Joint Liaison Committee would continue for three years after the actual lease ended. Now can I stress again one point that I made in the House yesterday? Had we not negotiated at all with China, the lease would have ended in 1997, 92%; of the territory, and it would just have reverted to China without getting the very good agreement that we've got because the prosperity of Hong Kong is important to China. So of course we are looking at everything extremely carefully, but don't forget, as was said in the House yesterday, most of the people in China are just as concerned about what has happened as we are, they have very great reason to be, so we hope the scenes which we have seen we shall never see again, and that they will result in coming through to far more democratic processes which will be valuable to China and valuable to Hong Kong. It is interesting in a way that China and the Soviet Union have gone about things differently. China got some of the economic reforms first, because I think she's more people who were used to peasant farming and making their own decisions, and so you get some of the economic reforms first, and now she's getting people wanting political reforms. The Soviet Union started the other way around, she hasn't got people who are used to making their own decisions in connection with either land or farming or manufacturing, but she started with the political decisions, the political reform, and she is having difficulty in getting the economic reform. But the world was really outraged at what it saw. And we wish to reassure the people of Hong Kong, as I say, we are dealing with greater flexibility, and we were getting in any event the democratic processes to a much greater extent and we shall have to look and see if those need to be speeded up. Again for the reassurance of the people in Hong Kong because I think they are feeling exactly how we would feel if we were in their position.
Q
Prime Minister, getting back to the Euro Elections, are you not concerned that your parties prospects have been slightly damaged by these apparent divisions …? [end p5]
PM
Good heavens, if you want divisions you go and look at the Labour Party. Half of them don't want a European Community at all and the other half are quarrelling about what they should do if they are in it. You want divisions, you go and look at that. I've got the best manifesto … and we're all behind our manifesto and our future lies in the Common Market, we think it can develop our way. There you go, there is not a single other party that has got a manifesto like that. Detailed, practical, never mind the photograph of me! Detailed, practical policies, page after page. Practical, step by step, working together more closely. Don't try and force people to go, life doesn't work that way. Our history is very different, and we want to keep some of the differences, we want to keep our own national identity, and I think most people throughout the community really feel that way. There is no point in forcing it. We are steadily working more closely together, all our agriculture we do together, all our trading negotiations we do together, and we can do other things together, but you don't force things upon people. It was interesting yesterday, or was it the day before, but this week, … . of the Community trying to get a … in how we should deal with alcohol and the connection with violence. And three of us said this is not a matter for the Community, it has nothing to do with the single market and so three of us, Germany, ourselves and I think it was either Belgium or Italy, said that is not for Europe. So we are going practically step by step, working together, each keeping our own national identity. And that is the best manifesto … . Utter nonsense, the French want to keep their identity, of course they do, the Spanish want to keep their identity, the Portuguese want to, and the Italians, they will never lose their identity no matter what happens, never. And they don't always have quite the same ideas as we do, sticking to the rules, you know where nations stick to the rules. We've been taken to court over sticking to the rules less than any other country in the community, save Denmark, which is another country that sticks to the rules. So we have to get the rules right, and not so many of them. Keep the variety, it's an advantage.
Q
Are you going to keep all your seats, Prime Minister?
PM
We want some more.