French Attitude Endangers Free Trade Area

Press, Volume XCVII, Issue 28529, 7 March 1958, Page 7

French Attitude Endangers Free Trade Area

(Special Correspondent N.Z.P.A.) LONDON, March 6. The projected European Free Trade Area is still in serious danger because of the French attitude towards it, according to political sources in London. French industrialists and unions are opposed to the plan and the French Government has not yet made any definite move to counteract their strong opposition. It is understood that the difficulties which have arisen over the negotiations were discussed at a special meeting of Ministers called’ by Mr Macmillan at No. 10 Downing Street. Those who attended included the Paymaster-General, Mr Reginald Maudling, who is in charge of negotiating with European countries on the Free Trade Area, the President of the Board of Trade, Mr Eccles, who is also closely connected with it, as well as the Secretary of Commonwealth Relations, Lord Home.

One question reported to have been discussed is whether preferential tariffs in overseas Commonwealth countries should be

extended to a certain quota of Continental goods.

It is stated, however, that any such proposal would be hardly likely to find acceptance by either political party in Britain and the British Government was likely to stand firm on this point. Mr Maudling, speaking later at a public function in London, said that the Free Trade Area negotiations were by no means simple and there were some great technical difficulties. “If our determination is not strong enough these technical problems will overwhelm us,” he said. Negotiations had been going on in Paris for the formation of a Free Trade Area of 11 countries linked to a common narKet to form a European super-market of over 290 million customers. France accepted the Common Market only as a step towards political union in Europe and if she succeeded in protecting her industrial and farming interests in the treaty. l

The Paris correspondent of the “News Chronicle" says the French fear a Free Trade Area might weaken any protection they now hold by letting in British goods against which they could not compete.

The French have now made new proposals to negotiate a reduction in tariffs and quotas for each industry separately which the correspondent suggests has been done to defeat or delay the Free Trade Area.

There is a newsreel showing in Paris cinemas depicting the coming of a Common Market, «nd adding that “this is the plan that will save France—provided it is not sabotaged by Britain’s Free Trade Area."