Safeguards For N.Z. Trade Outlined

Press, Volume CVI, Issue 31365, 10 May 1967, Page 12

Safeguards For N.Z. Trade Outlined

(Special Correspondent N.Z.P.A.)

LONDON, May 9.

The British Prime Minister (Mr Wilson) today revealed more clearly than before his attitude towards special arrangements for New Zealand should Britain join the European Economic Community.

In the course of a long speech in the House of Commons, he isolated three areas in which he thought a solution to the New Zealand problem might be found.

These were: The association of New Zealand with the E.E.C.

The establishment of Moroccan-type protocols. Entry for New Zeland’s major products levyfree or at a reduced level.

Four hours later, on a 50minute television programme broadcast throughout Britain, Europe and the United States, he said he would “never forget the words” of New Zealand’s Minister of Finance after the war, Walter Nash, who had said to the then British Labour Government: “Tell us what meat, butter and grains you need and we will send it” Mr Wilson added: “I remember those words of Walter Nash, and would say that there is widespread recognition in Europe—perhaps more so than four or five years ago —that the problem of New Zealand is one that has to be solved.” Boeing Purchase In answering questions on Commonwealth trade generally, Mr Wilson appeared to direct a backhanded slap in New Zealand’s direction when he cited aircraft as a field in which Commonwealth countries were already turning away from trade with Britain. Last week, considerable publicity was given in London to New Zealand’s decision to buy Boeing rather than B.A.C. for replacement aircraft. The question of New Zealand’s position was also raised by a French journalist who

asked: “If countries such as New Zealand became ‘associates’ would this not change the character of Europe?” Earlier Provision Mr Wilson replied that he recalled that both France and the other founding members of the E.E.C. had been generous in the provision of special arrangements for countries with whom they had a special trading relationship. This was an allusion to the Moroccan protocol agreed to by the Six when the Treaty of Rome was signed in 1957. France had argued that Morocco deserved special treatment because of her dependence on French markets, particularly for fruit and vegetables. Earlier, in the House of Commons, Mr Wilson had repeated again there was growing recognition in the Common Market countries that the

problem of New Zealand “must be dealt with imaginatively and realistically.” “This problem is one in which we have a bounden

duty to find a solution,” he said, amid cries of “hear, hear,” from all sides. Mr Wilson did not say, when mentioning the possibility of New Zealand products entering levy free or at a reduced levy, whether this would apply to just Britain or the E.E.C. as a whole. Emphasis In Debate

During the first day’s debate of the Common Market question in the House, speaker after speaker emphasised amid cheers the necessity for safeguards for New Zealand. The Commonwealth Secretary (Mr Bowden) declared that he would not be taking part in the debate unless he believed safeguards could be achieved. New Zealand’s sales of dairy produce, mutton and lamb to Britain would be subject to heavy tariffs and duties if Britain entered the Six and adopted the common agricultural policy—“that is why we emphasised the need for safeguards in all the capitals of the Six. We found a widespread recognition of the problems of New Zealand for they are unique. “This,” said Mr Bowden “sprang from her complete dependence on the British market

“We are seeking special arrangements for New Zealand to prevent her economy suffering unduly. The manner

in which she can best be safeguarded will require close consideration and full discussions with the New Zealand Government and, of course, the Six.” A voice: You say she should not suffer unduly. Why should she suffer at all? Mr Bowden: The object will be to see she doesn’t suffer. Questioned by an interjector about the length of time protective arrangements would

last, Mr Bowden said: “I can visualise a situation where a transitional period can be so long it is in fact permanent." This declaration brought laughter and shouts of “Here, here!”

Dealing with Commonwealth trade as a whole, Mr Bowden worked in what New Zealand observers believed was a reference to the Government’s decision to buy the Boeing 737 instead of the B.A.C. 1-11 for the National Airways Corporation—“We have been disappointed and not a little hurt in seeing orders which could have come to us go to foreign competitors.”

Retaining Trade He said he believed that in the event of entry into the Common Market Britain would hold a great deal of its Commonwealth trade. “Any Briton must thrill on finding as I did on my recent tour the vitality of Australia, particularly in Western Australia, and the quieter but dogged determination of New

Zealand and the feeling one gets of being back home in both. “The Six may refuse to give us the safeguards we seek and I am sure that in these circumstances rejection or withdrawal will be honourable and understood by the Six and the people of this country."