Danish Threat To U.K. Butter Market

Press, Volume CII, Issue 30062, 21 February 1963, Page 15

Danish Threat To U.K. Butter Market

(N Z.PA.-Reuter—Copyright)

LONDON, February 20.

The “Financial Times” and the “Daily Telegraph” today gave special attention to the Danish position in the recently-concluded Geneva talks by the seven member nations of the European Free Trade Association.

The Danes have pointed out that by removing industrial tariffs, they will be giving Britain better treatment than Commonwealth countries do.

“From there to the demand that Britain should give Denmark ‘Commonwealth treatment’ for her butter is a logical step,” the “Financial Times” said.

“What the Danes are after is the removal of the tariff—a move to which New Zealand will no doubt object—and a bigger quota.

"This year, the total quantity of butter imported will rise anyway. We have been eating down stocks in the last 12 months. To what extent Denmark can or will be given a disproportionate increase in her quota remains to be seen.

“As regards fish—where it is the Norwegians who are seeking concessions the problem is complicated by the question of fishing limits, some sort of compromise should, however, be possible. “In the present situation it is inevitable that E.F.T.A. countries should be seeking to further their special interest. The accelerated move towards freer trade will impose some sacrifices on every E.F.T.A. member.

“Britain as the largest member of the group has a big share of the responsibility for ensuring that the changes are fairly balanced,” the “Financial Times” said.

The “Daily Telegraph” commented: “Just as France in the community threatened to delay the scheduled reduction of industrial tariffs unless the Common Market in agriculture was introduced

so Denmark has threatened the same delay unless better provision is made for her agricultural! exports, “In Denmark’s case much has in fact already been done. The original agreement provided for a two-stage elimination of the bacon import duty, putting Denmark on level terms with the Commonwealth. But she now

wants something similar for her other main export, butter. “In theory there is nothing against giving Denmark a better share of the British market at the expense of community suppliers. But in practice the only important supplier is Holland, our most

faithful friend in the community. “Otherwise it could hardly help being at the expense of New Zealand and Australia. There is a good case for offering Denmark something, but the full price she has asked may be more than E.F.T.A. is worth,” the “Daily'Telegraph” said. Yesterday, tihe “Guard-

ian’s” Geneva correspondent reported that Denmark was determined to get at least the same treatment as New Zealand and other Commc'nwealth suppliers of butter to Britain. They had not, he said, exactly threatened to walk

out of E.F.T.A. if agriculture was not brought under E.F.T.A. free trade rules, but they had conveyed beyond any doubt that they could not risk their Government’s political future by returning from Geneva empty-handed. "There are strong hints that the Danes would insist on what Edward Heath offered the Common Market. But it is fully realised that Britain cannot help the Danes without taking drastic measures against French agricultural! exports and breach, ing the Commonwealth preference.

“Britain has no intention of taking drastic measures

against France while her five friends in the Common Market are trying hard to repair the Brussels damage.” the oorrespondenit said.