Thomeycroft In Malaya For E.E.C. Talks

Press, Volume C, Issue 29554, 1 July 1961, Page 11

Thomeycroft In Malaya For E.E.C. Talks

(Al Z.t-.M.-Keuler—Copyright; KUALA LUMPUR, June 30. Mr Peter Thorneycroft, Britain’s Aviation Minister, arrived in Kuala Lumpur by air this morning from Singapore for talks with the Malayan Government on prospects and consequences of Britain’s joining the European Common Market.

Mr Thorneycroft, one of three emissaries from London who are sounding out Commonwealth opinion, has been assigned to the Asian members of the Commonwealth.

He began with Singapore, arriving there on Wednesday night. Singapore and Malaya, according to local economic and official opinion, will probably be the least difficult of all the Commonwealth countries for Britain to persuade if she wished them to accept the idea of her joining the European Economic Community. Official reaction here about three weeks ago was that it was inevitable Britain would

join the Common Market and Malaya would like to see Britain associated in one way or another with the economically strong and expanding Europe. , The European Common Market as it now stands is already a big and growing customer for Malaya. Last year the six-member community bought more rubber and tin—Malaya's principal raw material exports—than Britain or the United States. Favourable as officials say Malaya is to the idea of Britain joining the Common Market, they nonetheless agreed with the Canadian Prime Minister (Mr Diefenbaker) that they would like to see a conference of all Commonwealth countries before Britain took any final decision. Reporters' Questions The Malayan Minister for Transport (Dato Sa-rdon Bin Haji Jubir) met Mr Thorneycroft at the airport. Reporters asked him what would happen if the three ministers now seeking out individual members' opinions eame back with reports that the majority of the Commonwealth was against Britain joining the Common Market. “Well, that would be a factor in our coming to any decision,” Mr Thorneycroft said.

But in answer to a further question, he stressed the final decision was to be left with the United Kingdom. “We cannot pass the buck.” he said.

Mr Thorneycroft said he wanted to give the Malayan Government an outline of Britain's thinking on the subject of the Common Market and the implications “as we see them” before hearing thoughts and analyses of the Malayan Government. He would also like to hear what safeguards Malaya might have in- mind to cover her present preferential standing with the British market. Sterling Area Asked whether Britain's joining the Common Market would not undermine the whole standing of the sterling area, Mr Thorneycroft said the “sterling area is something quite independent of anything like this.

“Member countries engaging in trade with each other find it convenient to make their clearing payment in sterling. The strength of sterling depends on the strength of all of us." Mr Thorneycroft said

Britain would not be thinking about the Common Market if it did not feel association with it might not help. Questioned on Malaya’s position with regard to its principal exports to Britain and Europe of rubber and tin. Mr Thorneycroft said he thought what Malaya wanted was for her exports of rubber to remain free of restrictions while facing a strong and growing market. Mr Thorneycroft was due this afternoon to have his first meeting with the Prime Minister (Tunku Abdul Rahman).

Political observers said Malaya would welcome a system which overcomes preference® at present operating in favour of the tropical associated territories of France. France obtained protection for her associated territories, like the former Indio-China, for an initial period of five years and now as independent nations they are in the process of trying to renegotiate these protections. Malaya is understood to be ready to make representations to Britain that should Britain join, Malaya be brought into the market- as an associate territory with similar advantages to those enjoyed by the French associate territories.

Mr Thorneycroft. the sources said, would admit the dangers of fierce competition from Continental industry but would point out that the competitive test will be applied—and is being appliedin any event. Britain would have to prove herself industrially competitive in order to prosper whether she joins the European Economic Community or remains outside.