‘Bad E.E.C. Prospects For N.Z. And Australia’

Press, Volume CII, Issue 30026, 10 January 1963, Page 9

‘Bad E.E.C. Prospects For N.Z. And Australia ’

(N.Z. Pres* Association—Copyright) NEW YORK, January 9. Nearly 17 per cent, of Australia’s export earnings could be affected adversely if Britain joined the Common Market, the director of the Research School of Pacific Studies at the Australian National University, Sir John Crawford, said in the latest issue of the “Saturday Review.”

The article by Sir John Crawford, who is a former head of Australia’s Department of Trade, is one of a number of special reports in the issue on the Pacific and world econosny presented by the “Saturday Review** in association with the Committee for Economic Development

In his review, Sir John Crawford eaid Australia could lose as much as 225 million dollars if Britain Joined the Common Market

"For New Zealand the prospect is even more serious,” he said. “For about 40 per cent at her exports, such as meat butter, cheese and fruit, Britain constitutes almost the total market

"Moreover, New Z rate nd ’ has a retetiveiy minor industrial tone, a narrower range of exports, and will be teat able then Australia to absorb shocks from European discrimination or serious setbacks in world market oppor-

Sir John Crawford said that the three most important groupings in the sense of power blocs were the Euro-

pean Common Market, the Communist Bloc and the United States. The British Commonwealth was a mixed grouping of advanced and underdeveloped territories, with no executive cohesion. It was now probably confronted with a final disintegration of its preferential economic ties. These ties had been steadily weakening in recent years, but their threatened dissolution (if Britain joined the Common Market) nevertheless presented Australia and New Zealand with grave difficulties—at least in the relatively short term of the next ten years. “The first general observation to be made about the three most advanced blocs is that Australia and New Zealand, facing exclusion from the markets of Europe, must be coroeepondfafAy attracted by prospects opening up for trade with the Communist Bloc, including Red China,’* Sir John Crewford said. ‘They are also uncertain whether Mr Kennedy’s so-cafied grand design for the free world fully takes account of their trading probtans. “In both Australia and

New Zealand, the Common Market is widely regarded as an ‘economic enterprise’ with a political purpose. It follows from this viewpoint that the impact is not limited to the economic field, although this is more dearly seen and assessable than the political impact,’’ he said. Discussing the importance of the United States to Australia and New Zealand, Sir John Crawford said that it was a major source of their security, an increasingly important souree of capital and know-how, especially for Australia, a major exporter to both countries, and an import market for their exports and potentially a much larger one. However, there were frustrations for Australia and New Zealand in trying to expand exports to the United States. “America is the one important country that places a high duty on raw wool, thus hurting both Australia and New Zealand, "Its embargoes on dairy produce hurt both, but especially New Zealand. Ms quota on minerals severely restrict exports from Australia, which is probably the worid’s moot efficient producer of lead and zinc. "Its surplus disposal programme, while sympathetically viewed in Australia and New Zealand seems sometimes to be applied merely to the interests of reducing burdensome stocks Jn the United States,” Sir John Crawford said. “la the economic field, America wiß be judged by Australia and New Zealand by the pressure it exerts on Europe to adopt more liberal trading policies, by Ms wiHingMra to uee the iSrade

Expansion Act to negotiate direct trade agreements with her smaller allies, and by her leadership in promoting economic development in Asia,** ’ he said. The poUittoal ditanma pre- , seated by the growing trade outlet in China was an obvi- , ous one and be said he ’ thought Australia and New ; Zestaid were prepared to , live with the dilemma. “This is, we will trade with • China, but will continue to [ frrnibarfln strategic materials r and defer recognition until . the future of Formosa is I satisfactorily settled,” be r said. i He said that there were some signs—evident in a • willingness to join in negotial tione for international com- ■ modtiy agreements that the I European Economic Ooms muntty might yet recognise i its world responsibilities. r “AH told,” be said, “a 1 greet reshaping of policy is ; taking place. The Common . Market in Europe has been a major factor, but not the only stimulus. The political and economic conditions ‘ ruling in Asian countries - have assumed great signlfi- • cance. Ties with the United States are likely also to become more, not tea*. im- ; portent. ; One thing above all was Ici ran Australia and New Zcatand we part of a wocid i community. They could not [ live by themselves. They occupied a special , position in the south-west ' Pacific which made them I acutely conscious of the i interdependence of the free ► worid. "Their poUcies will ; certainly reflect this fact,’’ i Sir John Crawford said.