MR MACMILLAN ARRIVES

Press, Volume XCVII, Issue 28490, 21 January 1958, Page 12

MR MACMILLAN ARRIVES

Talks With N.Z. Government

(New Zealand Press Association) AUCKLAND, January 20.

The British Prime Minister (Mr Harold Mac? millan) arrived at Whenuapai at 4.5 p.m. today in a Britannia airliner after 56 hours of flying, and 17,055 miles from London where he began his Commonwealth tour.

A small gathering sent up some cheers as the Prime Minister, his wife, Lady Dorothy Macmillan, and others in the party walked along the blue carpet rolled out for them.

By the carpet stood the Prime Minister (Mr Nash), the United Kingdom High Commissioner (Sir George Mallaby), and representatives of the Government and the services. Mr Nash introduced the others, and then Mr Macmillan inspected the Air Force Guard.

He thought it was a good idea for a British Prime Minister to do the tour, Mr Macmillan said during his press conference. He would have informal discussions with the Government on a whole range of topics—“how to deal with Russia” would be one of them. It was quite different having an hour or two of discussion with the New Zealand Prime Minister instead of sending cables. “Yes,” he said to a question, “we will discuss defence matters in general.”

He said the new Commonwealth was something absolutely unique in the history of the world. It was not created by weakness, but by a set purpose. The independence of India had not arisen out of failure of the British rule there. He spoke of the common bonds of Parliament in the Commonwealth, and the system of law and procedure. Mr Macmillan said: “It is the value of the individual, and not the State, which is the basis of our civilisation. All this in the Commonwealth can be utilised for the progress and peace of the world. It can make a great purpose.*

Import Policy Asked for his views on New Zealand’s new import policy, Mr Macmillan said he fully appreciated the circumstances that had made the policy. “We are naturally concerned in Britain,** he said, ‘‘and I hope it will soon sort itself out. I hope that the New Zealand Government will deal sympathetically with any British trade that is particularly hard hit. But I hope it will soon come to an end when the balance of payments recovers.” He said he was glad to see the European Common Market come into being, because it strengthened Europe, which was weak, and there could be the kind of collapse which happened in Rome and Greece. Britain could not join because the scheme included agricultural products, but she was in favour of a free trade area including 16 or 17 countries and dealing in manufactured goods. There were problems to be worked out, and tariffs were not the only problem. There was no common exchange system. He said: •‘I don’t know what the end of it will be.”

He considered that it would have been morally wrong for Britain to have opposed the European trade move altogether. “The alternative,” said Mr .Macmillan, “was to try to build up an area around it.”

“Big Adjustments” If the free trade area in manufactured goods was established there would, of course, be big adjustments to be made. “There will be industries in Britain which will go under,” he said. “They will be those with higher costs in production. There will be pressures, but they must be healthy pressures.”

Mr Macmillan, asked about the recent resignation of Mr Peter Thorneycroft. the Chancellor of the Exchequer, said that resignations never helped a Government. “He was an old friend and a good colleague,” said the Prime Minister. “It was not a resignation on principle. It was on a question of method.” Mr Macmillan had a cold when he arrived. He apologised for his voice, which was slightly hoarse.