Greater Trade With Communists Likely

Press, Volume CI, Issue 29848, 14 June 1962, Page 5

Greater Trade With Communists Likely

, (From '''Reporter)

WELLINGTON, June 13. Closer economic relations with Communist countries was a likely development if New Zealand was “tossed out in the snow” as a result of England joining the European Economic Community, said the chairman of the Dominion dairy section council of Federated Farmers (Mr R. Woolerton) at the annual conference of the section today.

Although he was purposely intending to be provocative when he made similar statements last year, he still meant this, said Mr Woolerton.

•‘A year has passed and the prospects look no more favourable to us now. The European Economic Community farm policies have been more or less finalised and will be more protectionist than ever. If they can secure the United Kingdom as a member of their group they might do the same thing to the United Kingdom's agricultural imports policy. You will note I said ‘they might’—perhaps I could be much more definite and say they ‘will’,” he said. It was obvious the United States was most concerned that the United Kingdom should join, primarily because of fear of another German rising in Europe. To help prevent that, the United States Government had done almost everything in its power to assist the establishment of the European Economic Community and induce the United Kingdom to join as an additional stabilising factor. The United States Government had taken this action even though its own exporters stood to lose from the European Economic Community’s establishment. However, to offset possible adverse effects on United States exports the President was pushing through the Trade Expansion Act. This gave the President power to reduce tariffs on European Economic Community goods entering the United States in return for similar concessions to United States goods entering the European Economic Community, he said, ‘‘Obviously the United States Government is mindful of the harm that might be caused to United States exports. Being a vast country and occupying an influential place in world affairs, it helped bring the European

Economic Community into existence and is pushing hard io enlarge it.

‘‘But it can also take action to protect its own exporters against the threats from the European Economic Community. So far it has expressed little concern for such economies as our own," said Mr Woolerton.

Exports to Australia Mr Woolerton also said he hoped the Australian Government would discover the wisdom of a liberal policy towards New Zealand dairy exports.

Commenting that so far there was no indication that the Australian Government would adopt a reasonable attitude towards New Zealand dairy produce, he said Australia apparently intended to prop up its declining industry even if it cost many millions each year in the form of subsidies.

“If they are looking for ways by which they can make their own consumers' pound go further, permitting the entry of our butter into their market would be one very effective method of doing so.” said Mr Woolerton.

He said he hoped they would soon change their present unrealistic policy. On the question of New Zealand sending a consignment of butter to Sydney to give Australians an opportunity to taste the world's best and lowest-priced dairy produce, he said there was nothing very odd about such a suggestion as the Australians were permitted to sell wines and fruit in New Zealand alongside the local products. Commenting on Mr Wooler-

ton's report, Mr R. G. Buckleton (Bulls) said he would like to see the federation "really go to town” on the question of the adverse balance of trade with Australia. It was no good negotiating with Australia, he said “I feel certain we will have to take a stand against their attitude towards us.” he said The repercussions and implications of Australian dumping could be serious not only for farmers it could be extremely serious for New Zealand’s economy The Australian Government only a month ago had decided to subsidise its dairy industry at the rate of £13,500.000 for the next five years.

A subsidy of £350.000 was also to be paid to the milk powder industry. “They have done that to let their producers climb on our back in the milk powder markets we have built up in Eastern countries." he said

There was nothing New Zealand really required from Australia. “To them we are just a bunch of pig islanders from the shivery islands. We have to tell them we plan to take immediate steps to eliminate this unfavourable trade balance

It was no good putting it off longer and no use leaving it to politicians Farmers would have to fight it themselves, said Mr Buckleton.