COMMONWEALTH CONFERENCE

Press, Volume XCIII, Issue 27993, 13 June 1956, Page 10

COMMONWEALTH CONFERENCE

Special Importance To N.Z. PROBLEMS OF TRADE AND BASES (From the London Correspondent of “The Press”) LONDON. June 8. No official preliminary statements are issued on the points of discussion for the Commonwealth Prime Ministers’ conference, but there are already sufficient signs to indicate just how important the 1956 talks are likely to be. They may well be the most important since the start of these conferences in 1944. and especially so for New Zealand. Though there have been some fundirmental changes in the international situation since the last discussions, it seems likely that the 1956 talks will not be dominated by the single issue of military strategy for the first time since the war.

The relationships among the Prime Ministers mav be found to be somewhat varied bv the absence from the table of Sir Winston Churchill. While Sir Anthony Eden has had experience of these conferences as Sir Winston Churchill’s chief aide, this is his first as Prime Minister and it. is important to him that it be a success, especially at a time when his political fortunes seem to be slowly surmounting the serious slump of the last seven or eight months. His will be the task of surveying for the Ministers the world situation and the possible future actions of the United Kingdom and the member countries as a result of the recent visit of the Russian leaders and the changing attitude of the Soviet Union in world affairs.

Equally experienced in these conferences is Mr Nehru and his may be a more important role now than under Sir Winston Churchill. In the past India has not been able to look to Ceylon’s representative for support at these talks, but it is possible that Mr Nehru may find a new ally in Mr Solomon Bandaranaike. especially a c the new Prime Minister of Ceylon seeks to emulate the Indian leader by having republican status for his country. South-East Asian Bases

Mr Bandaranaike’s desire to end British bases in Ceylon, and his recent declaration that he had not the least doubt that the British would accede to his desire, is of prime significance for Australia and New Zealand and might well lead to a lively debate. Bases which have for so long protected the lines of communication with the two countries are under growing threat of disappearance and diminished effectiveness and Mr Holland and Mr Menzies will have the greatest interest

in possible solutions to these problems. That interest will centre on Singapore. Malaya and Ceylon in South-East Asia and Aden and Cyprus in the Middle East, all of which are links in the chain of their defence.

Cyprus, especially, seems destined for a good airing of opinion during the talks and the United Kingdom might well «eek Commonwealth opinions on a possible solution. Mr Nehru, who has offered his ideas on the Algerian situation to the French, is almost certain to have some proposal for Cyprus. Mr Menzies has caused some surprise by announcing his desire to scrap the 24-year-old Imperial preference scheme and to replace it with a new Commonwealth trade agreement. Some observers feel he has been premature in advocating so drastic an action, but one would expect New Zealand, in spite of Mr Holland’s statement that he is not yet ready to take action on the Ottawa Agreement, to be in sympathy with Australian aims. There will be considerable Canadian opposition to any such Australian objective, for since the United Kingdom dropped out of the International Wheat Agreement. British millers have preferred to buy hard Canadian wheat rather than the softer Australian variety. Canada is also onposed to any strengthening of protectionism, either inside the Commonwealth or out of it. But New Zealand is unlikely to find much sympathy with Canadian oninion, disliking as its does the effect of Canadian dairy surpluses on world markets. Close Watch by N.Z.

The Australian moves are being closely watched by New Zealand observers and the outcome of Mr Menzies’s pre-conference discussions with Sir Anthony Eden and the British Treasury may have some bearing in forcing New Zealand to an earlier decision along Australian lines than is at the moment contemplated.- The Australian balance-of-payments position is such that Mr Menzies cannot afford to wait and though New Zealand may feel she can take a more placid view of the situation, her own balance-of-payments position is unsatisfactory and is likely to become even more so if the downward trend of butter and meat prices is not arrested.

There is considerable speculation about the possibility of new member countries having a representative at future, conferences and any discussion on this point would certainly centre on lhe Gold Coast, Nigeria and the Central African Federation. In the case of the latter, sovereignty it is not yet entire, but Lord Malvern, the Prime Minister, has been invited in the past and will be present this time. If a decision is not made at this meeting for admitting one or more of -these countries, the discussions should certainly clarify the likelihood of a decision at the next conference. This will be the seventh conference since the war and the fourth that Mr Holland has attended on behalf of New Zealand. The wide range of possible subjects and the intimate association of many of them with New Zealand should make it the most important for him and allow a greater contribution from New Zealand than has sometimes been possible in the past.