I propose to make a statement informing the House of the latest position on the Falklands crisis particularly in the light of last night's meeting of the Foreign Affairs Council in Luxembourg. In my statement to the House on Tuesday last, 11 May, I explained comprehensively the principles that have guided the Government's policy in relation to the crisis in the South Atlantic and the development of our attitudes and actions in the light of those principles and the evolution of what has been a constantly changing situation.
Those principles are that we are committed to the rule of law in international relations, and that we support action taken in furtherance of Security Council Resolution 502. That resolution calls for a cessation of hostilities, the withdrawal of the Argentine forces from the Falkland Islands, and the achievement of a peaceful settlement by diplomatic means. I would emphasise that Ireland's position of support for these three demands has not altered.
When we agreed to Resolution 502 there was hope that a peaceful settlement was attainable. Indeed, it was in that hope that we supported the resolution of our partners in the European Community instituting a system of economic sanctions. With the increase in hostilities in recent weeks, that hope faded and we found ourselves moving into a situation which would seriously endanger our traditional policy of neutrality. We were being seen and obviously could fairly be interpreted as being associated with a serious escalation of military activity.
At the outset, the Government went along with sanctions with reluctance. We had reservations about the apparent tendency towards a proliferation of economic sanctions, the effectiveness of which is very doubtful, especially when they cannot be universally applied. However, a persuasive case was made that in this instance the primary effect would be to give a clear political signal that forceful seizure of territory was intolerable and could not be perpetrated with impunity. On this basis and in a spirit of Community solidarity, we agreed with our partners, on the clear understanding, certainly so far as we were concerned but I believe generally, that the measures were intended to reinforce political and diplomatic efforts to secure a peaceful negotiated settlement.
By 4 May, in the circumstances I have already recalled, the situation had completely changed. Hostilities had intensified and it appeared that on both sides negotiations might be put aside. We were faced with the prospect that sanctions would operate and be seen to operate in a situation of open war.
In these circumstances and in view of our neutrality, the Government had to review our support for sanctions. We indicated that in our view their continuation in a situation such as appeared to be then emerging, would no longer be appropriate. We were conscious that the relevant Community Regulation contained provision for a review before the expiry date of 17 May of whether the measures should be extended, amended or repealed. This required a proposal from the Commission.
While our view was put to his colleagues by the Minister for Foreign Affairs some time ago, no such proposal was tabled. While there was a consensus that the measures were intended to advance a diplomatic settlement, not a military solution, it was felt that it would not be right to lift the sanctions in advance of the expiry of the Community regulation.
On the other hand, it was agreed that a decision on any extension of the measures after 17 May should be left over until closer to that date. Clearly, member states wished to be in a position to monitor the situation and to decide their attitude by reference to the continuation and progress of meaningful negotiations, on the one hand, and the possible escalation or de-escalation of hostilities, on the other.
As Deputies will be aware, at the meeting of Foreign Ministers in Luxembourg yesterday, Ireland and Italy made declarations to the effect that they would no longer apply sanctions and this was accepted. To avoid any distortion of trade within the Community, Ireland and Italy will not allow their countries to be used so as to permit goods imported from Argentina to enter the territory of our other partners. The other members agreed that the measures being applied against Argentina for the last month would remain in force in their countries for one further week until 23 May.
The objective of Ireland and of the other members of the Ten remains a peaceful negotiated settlement between Argentina and Britain in accordance with Resolution 502 of the UN Security Council. I wish to underline our own strong support for the continuing efforts of the Secretary General, with the support of the other members of the Security Council to bring about a peaceful and honourable settlement.
I know that the consistent and constructive approach we have adopted in relation to this problem has received very wide support among our people. I am also satisfied, on the basis of reports from our diplomatic missions, that our policy, which has been clear and consistent throughout, in a situation of great danger and complexity, has earned us considerable respect in many countries around the world. I think it is due to this country and its people that this should be more clearly understood and more openly acknowledged than has, I am afraid, always been the case in the recent past.
I would only add, for the information of Deputies, that the farm price package has been agreed by the Council of Ministers this afternoon. While the news has just come to hand about the agreement of the farm price package I will be glad to make available later in the day to Deputies some details of the farm price package. I could give them now but perhaps Deputies would prefer to wait until they have a written document in front of them.