The Press FRIDAY, APRIL 6, 1962. New Zealand And The E.E.C.

Press, Volume CI, Issue 29791, 6 April 1962, Page 10

The Press FRIDAY, APRIL 6, 1962. New Zealand And The E.E.C.

The informants who suggested to the London correspondent of the New Zealand Press Association that New Zealand’s case on the European Economic Community was “going by " default ” might more usefully have complained that New Zealand does not yet appear to know what its case is. And until New Zealand thinking has been clarified, what can the Government do about stating a case that does not exist? No useful purpose would be served by stamping round and telling anyone who might listen that New Zealand is opposed to Britain’s joining the E.E.C. if it is going to make any difference to New Zealand. Of course it will make a difference. If we could do no more than that we might as well rely on the British Government’s promise of special consideration for New Zealand and not alienate the sympathy we already have. It would be beating the air to try to keep Britain out of the E.E.C. if Britain believes she must join to protect its economy—and worse than beating the air. Supposing New Zealand succeeded, what would it profit us if we contributed thereby to the decline of our best market? What New Zealand should be doing, and probably is doing, is trying to get. early knowledge of the nature and extent of the special consideration it has some chance of getting from the E.E.C. members, and specifically from Britain. It may be easier to acquire that knowledge than to persuade New Zealand exporters of the advantages of coming to terms. It is

not so much a matter of “ pacifying ” New Zealand opinion, as represented by the producer boards, as of educating it to reality. New Zealand, as the London correspondent implies, cannot count on unrestricted entry to the London market after 1967 whether Britain joins the E.E.C. or not. It would be futile for New Zealand to demand something that it cannot expect. Instead, we should be thinking of the form of compensation New Zealand should seek, perhaps before 1967, if we accept an earlier termination of the agreements, as we have had tc agree to a; waiver for butter this season. Have the producer boards considered the possibility of monetary compensation? If Britain joins the; E.E.C. and therefore adopts; the Continental method of; agricultural protection it wiU save £350 million a year in agricultural subsidies. Some of the saving would have to be used to reduce taxation on British consumers, who would pay more for their food: but from the balance Britain could afford to pay New Zealand a generous subsidy, I Such an arrangement would give New Zealand agriculture and the New Zealand economy generally a breathing space in which to adjust themselves to the new order in Europe. Perhaps some other form of compensation might be preferable; but whatever it is the Government must be clear on the terms that are both practicable and acceptable before it starts making too loud a noise. It is better to let the case go by default than to enter court with the wrong brief.