Brussels Proposals Unwelcome—P.M.

Press, Volume CI, Issue 29838, 2 June 1962, Page 10

Brussels Proposals Unwelcome —P.M.

(hew Zealand Press Association)

WELLINGTON, June 1. “The agreement on manufactured goods ftom Canada, Australia and New Zealand, arrived at in Brussels between Britain and members of the European Economic Community, no doubt represents the best compromise Britain could obtain, but it does not meet our position,” said the Prime Minister (Mr Holyoake) in a statement tonight.

“It seems that in the agreement contemplated, the community's common external tariff will be imposed on manufactures from the three Commonwealth countries in three stages and will be fully operative by 1970.

“Preference margins at i present enjoyed by the Com- ; monwealth countries over ( members of the E.E.C. them- ■ selves will almost certainly disappear in one of the earlier stages, although it appears there will be two reviews of the situation, the first in 1966 and the second in 1969." said Mr Holyoake. He said proposals which visualised the payment of the common external tariff on products that now entered Britain duty free (and often on a preferential basis compared with products from Western Europe and other non-Commonwealth exporters) were naturally distasteful. “While the actual value of New Zealand’s trade in the manufactures concerned is small, it is the policy of the New Zealand Government and the business community to place increasing emphasis on the export of manufactured goods so as to diversify New Zealand's economy,” said the Prime Minister. The arrangement envisaged at Brussels was therefore unwelcome because it would make it very hard for New Zealand to develop further the British market for these products and at the same time do nothing to open up the community market, said Mr Holyoake. “The proposals announced do not affect more important New Zealand exports such as casein, woodpulp and processed foodstuffs.” he said, i “Arrangements for these are : still being considered. “No Protection” “Any arrangement along • similar lines, applying to • those products with which • New Zealand is primarily i concerned, however, would • certainly not protect our

vital economic interests. It is therefore to be hoped that this will not establish a precedent for arrangements made for agricultural foodstuffs. “Fortunately, the present provisional arrangements will be reviewed again as part of the whole package deal when negotiations are completed and there will be an opportunity to discuss all aspects of this and other crucial problems at the Prune Ministers’ conference in September.”