AGRICULTURAL PRODUCTS P.M. Reviews New E.E.C. Position

Press, Volume CIX, Issue 31976, 1 May 1969, Page 1

AGRICULTURAL PRODUCTS P.M. Reviews New E.E.C. Position

(New Zealand Press Association) BLENHEIM, April 30. The most important factor governing the future of the British market and its value to New Zealand was the possibility of Britain joining the European Economic Community, the Prime Minister (Mr Holyoake) said in Blenheim tonight.

A second factor was the desire oi Britain to become more self-sufficient in agricultural production.

Although the increases in British agricultural production would be slow, the effect must be either a smaller market for New Zealand or a lower price for New Zealand’s lamb—or both,

Mr Holyoake said. The British beef industry was dependent upon the dairy herd and an increase in beef production had as side- ' effects increases in milk production surplus to liquid requirements. This surplus would be converted to butter and cheese, which would lessen the demand and need for imports. Mr Holyoake said the Government was watching very closely Britain’s negotiations to enter the E.E.C. “Although they appear to have reached an impasse, we are acutely conscious of our vulnerable trading position should they be successful. But we musn't be too pessimistic."

Mr Holyoake said New Zealand had gained recognition in Britain that it had a special position and also an assurance that this special position would be taken into consideration during negotiations.

“Nevertheless the danger is there. A recent visitor from the community, Dr Sicco Mansholt, made this point that we should not build up longterm hopes about any special arrangements should Britain join the community.

“He was convinced that any arrangements made would be ultimately phased out. But he also said that any special arrangement could give rise to demands for compensation from other members of the community.”