READY FOR E.E.C. CHANGE

Press, Volume CIII, Issue 30602, 19 November 1964, Page 17

READY FOR E.E.C. CHANGE

(Special Crspdl. N.Z.P.A.) LONDON, Nov. 18. British plans for action in Europe if General de Gaulle should break up the Common Market are in an advanced stage, says “The Times.” The fundamental British objective would be to rebuild from the ruins some form of extensive free trade arrangements with the nucleus of the Common Market and interested European Free Trade Association countries. The Treaty of Rome might provide the basis for this action and an opening could be left for France, should she later change her mind. Clearly, discussion about European policy if the Common Market ceases to function, as General de Gaulle has threatened, is being held behind the scenes by many governments. Whitehall’s ideas should be seen only against this background: If the worst came to the worst, it is necessary to be prepared. The British

hope would be that such a contingency would not arise. A number of ideas have been examined if the possibility of taking the Treaty of Rome as a basis is not so impractical as it might seem. If European countries are determined to save what they can from the Common Market, it provides a comprehensive working basis. From the British point of view it should not be too difficult to safeguard Commonwealth free entry to Britain—textiles being one of the main problems of the industrial side—and devise some system such as import certificates covering fair competition for re-exports to the Continent.

While these kinds of ideas are still fluid and highly con-

fidential, the impression is that the British Government might be able to act quite quickly if faced by an emergency.

The feeling in Brussels is that General de Gaulle is still leaving himself two alternatives which are both attractive: He can choose either Europe or France. If Germany agrees to French demands for agriculture, he can choose Europe. It is not known exactly what the general considers sufficient to stave off the evil day of ending French participation. List Presented Mr Couve de Murville, the French Foreign Minister, presented a comprehensive list of requirements to the Council of Ministers last week covering the fixing of common prices for beef and dairy products, as well as cereals, completion of the regulation for sugar and for oils and fats, and settlement of the financial regulation which covers such vital matters as

export rebates to national governments from community levies. If the Germans do not satisfy his demands, General de Gaulle can choose France. This would mean freezing or withdrawal from the Common Market in some form as yet unspecified, the end of the Kennedy Round and doubtless action in the longer term to restrict American investment in France.