McEwen Rejects Six E.E.C. Possibilities

Press, Volume CI, Issue 29802, 19 April 1962, Page 13

McEwen Rejects Six E.E.C. Possibilities

(N.Z. Press Association—Copyright)

LONDON, April 18. Australia’s Trade Minister, Mr McEwen last night publicly defined Com* mon Market arrangements that would be unsatisfactory to Australia. In a major speech he ruled out six types of arrangements purporting to protect Australia’s trade with Britain.

His address to the Australia Club in London virtually rejected in advance any idea that such schemes could be raised later with success at the BritishCommon Market negotiations in Brussels, observers said.

Mr McEwen, who is due to leave for Australia tomorrow after a world tour, spoke of the dangers implied for Australian industries if Britain joined the European trade bloc without safeguards for countries in the Commonwealth. He said he was sure solutions could be found compatible with the Common Market treaty. They could be backed by a determined effort to reach world solutions for the great bulk of agricultural products. He ruled out also transitional arrangements, calling that a “precipice solution.” He told British and Australian businessmen that his country “wants, and we need, better prices” in Britain for agricultural products. Two-thirds—or about £ 160 million a year—of Australia’s annual exports to Britain were at stake in the BritishSix negotiations, he said. Talks To End Mr McEwen will finish today his week of talks with senior British ministers, including the Commonwealth Secretary (Mr Sandys), the Lord Privy Seal and chief Common Marked negotiator (Mr Heath), the Board of Trade President (Mr Erroll), and the Agriculture Minister (Mr Soames) Mr McEwen last night spoke in general terms of what Australia wanted, but in declaring what Australia did not want, he went much further than in recent statements. On that point Mr McEwen said: "Arrangements purporting to protect our trade with the United Kingdom, or the equivalent, would not be satisfactory—“lf they left our industries facing a disastrous ‘precipice’ after a transitional period. “If they failed to cover sections of our trade which traditionally rely on the United Kingdom market. "If the amount of tax imposed by the British

authorities on food imports from Australia can be set by the price quotations of foreign suppliers. even Communists, outside the Commonwealth and outside the Common Market. That is the present proposition. “If we are expected to give up concrete protection of trade items at a definite future point of time in the mere hope that world-wide “solutions” will by then have been found. “If we are to be deprived of preferences and our traditional free entry into the British market on a fiction of making trade freer, while, at the same time, formidable barriers are erected between us and our traditional market where none has previously existed. "And above all, if. in the guise of the doctrine of ‘non-discrimination,’ our producers were to suffer transformation from a preferential position of very long standing to a position of drastic inferiority among suppliers to the British market.”

Of Britain’s projected entry into the Common Market, he said: “Our contractual relationship with Britain is quite different from that of any non-Commonwealth country. “I believe that the Rome Treaty contemplates that such a special trade relationship as ours can be maintained with a member country of the Common Market. “I have made my understanding of this point clear to the Governments of the Six. conceding that the preservation of the relationship should not involve terms incompatible with the treaty “It there is failure on the Continent, or in the United States, or even in this country to comprehend the extent to which the massive reciprocal trade between Commonwealth countries contributes to holding the Commonwealth together, then we will not get minds devoted to discovering, with the Rome treaty, the means of sustaining our trade relationships. “From all points in the Western world we have declarations that a strong and continuing Commonwealth is n-cessary ”

Mr McEwen also said: “In my opinion, the future of toe free world would not be advanced if the conditions necessary to secure political and economic unity for 200 million people in Europe should lead to economic damages and political disillusionment for hundreds of millions of people in very many friendly countries outside Europe.” Mr McEwen proposed a two-stage plan to help Australia. First, he believed Australia’s arranged trade with Britain could be preserved under article 234 of the Common Market treaty. This says, in part: “The rights and obligations resulting from conventions concluded prior to the entry into force of this treaty between one or more member States, on the one hand, and one or more third countries, on the other hand, shall not be effected by the provisions of this treaty.” He did not amplify that reference Observers said it seemed as if Australia would plead her historic and imperial preference trade relationship with Britain as a pre-existing link that should remain if Britain entered the Six. Bulk Products He also proposed that a determined effort to reach world solutions on bulk agricultural products. But until that was achieved. Australia would need “firm assurances of access and conditions of sale.” He warned of a “strong reaction” in Australia if British entry meant that Australian export producers became “a grievously hurt inferior supplier.” Such a situation “would impair the very foundations upon which our Commonwealth association rests.” he said. “Let there be no wishful thinking. Solutions must be found for serious problems.” Gromyko In Belgrade.— The Soviet Foreign Minister (Mr Gromyko) and his Jugoslav counterpart (Mr Koca Popovic) yesterday began talks expected to range over Soviet-Jugoslav relations, and over world affairs generally.—Belgrade, April 18.