“Cabinet Preparing Alternative Plan”

Press, Volume C, Issue 29563, 12 July 1961, Page 15

“Cabinet Preparing Alternative Plan”

(N.Z. Press Assn.—Copyright) LONDON, July 11. A “shadow” plan for Britain’s economic future was being prepared by the ‘Cabinet in case it decided not to join the Common Market, reported the “Daily Mail.” Drastic changes would be ordered in Britain’s defence, economic and trade policies, the newspaper said. The report coincided with banner-headlined reports in the British press of the strong stand taken by the Australian Cabinet in Common Market talks with the British Commonwealth Relations Secretary (Mr Sandys).

The “Daily Mail” said the “shadow” plan- would involve a far bigger reorganisation of Britain’s policies towards the rest of the world than joining up with West Europe. According to the plan, there would have to be “a

pulling up of the moat bridge between Britain and West Europe and a shoring up-of defences against feropinnc

“As a deal with Europe fades out, Britain will begin the task of strengthening her links with the Commonwealth nations," said the "Daily Mail.” These might lead to a new trade bloc based on the Commonwealth countries with a new system of tariffs and duties to protect British industry from a “blood-let-ting trade war with Europe.” This was precisely what President Kennedy did not want to see—the West split on trade rivalries and hurting itself instead of making common endeavour against the East.

But from the British point of view, not much choice was left if the Common Market venture failed, said the newspaper.

The United States Secretary of State (Mr Rusk) was asked yesterday if the United States was dragging Britain "kicking and screaming" into Common Market”

He replied that the United States was not dragging anybody into anything. He told a National Press Club luncheon: “This is not a simple and easy question for either the United Kingdom or the Common 4 irket Mr Rusk said the United Kingdom “has associations on the Continent with some who would not find it easy or profitable to go with them into the Common Market. “This is a problem which deserves a great deal of thoughtful attention, on both sides, and we ourselves are not telling either side what the answer ought to be." Mr Rusk said the question of Britain’s association with the Common Market was one for Britain and the Common Market to decide.

“Whether the United Kingdom joins the Common Market is a question for the United Kingdom and the Common Market,” he Said. “We are not dragging anybody into anything. “The United Kmdom has important relationships, economic in character, which do affect this question.”

AUSTRALIAN TRADE New Market Search (N 2 .P. A .-Reuter—Copyright) CANBERRA, July 11. Australian trade experts are already striving to find alternative markets for exports worth £170,000,000 a year now going to Britain. These are the products which could be severely hit by a loss of free access to the British market, which authorities say would follow Britain’s entry to the Common Market. High hopes are held of expanding Australian exports, already worth £150.000,000 a year, to Japan. Other possible markets in South America, Asia, and the Middle East are now being examined, and in some cases cultivated.