E.E.C. TALKS N.Z. Seeking “Protocol”

Press, Volume CX, Issue 32351, 17 July 1970, Page 1

E.E.C. TALKS N.Z. Seeking “Protocol”

(From HOWARD WILLIAMS) BRUSSELS, July 16. Hopes that New Zealand would obtain a “Moroccan protocol” and a long-term trade agreement with an enlarged European Common Market were expressed yesterday by the Deputy Prime Minister (Mr Marshall).

Speaking at a news conference after two days of talks with Common Market leaders, Mr Marshall emphasised, however, that any agreement must be “a continuing agreement, subject to regular review.”

In return, said Mr Marshall, New Zealand would be prepared to give an undertaking that she would endeavour to diversify her markets. But Mr Marshall has emphasised throughout his European tour that diversification would necessitate a long-term plan—it could not be achieved in the short term. Hence the “Moroccan protocol” idea. Morocco, after independence, was allowed, and still is allowed, to maintain her trade with France, although she is not formally associated with the Six. Such an agreement would allow New Zealand to maintain butter, cheese and lamb exports to the United Kingdom.

But Mr Marshall also made it clear that he wants to see a new G.A.T.T. agreement on price disciplines. This part of the Marshall plan has the firm backing of

Dr Sicco Mansholt, executive president of the Six.

In informal talks with Mr Marshall, Dr Mansholt has made it no secret that he would like to re-structure Europe’s agriculture along the lines of existing New Zealand systems. Asked what he felt about France’s attitude to New Zealand, Mr Marshall referred to his visit last October to Paris and said: “I was not too depressed.”

Asked if he was optimistic, Mr Marshall said: “I think the word is determined. I am determined to succeed.” Mr Marshall has now left for home. He will return to Brussels and other European capitals later this year, after the British Government has formally outlined what it considers to be the “New Zealand problem." Cost “Unacceptable” The cost to Britain of the Common Market’s present farm policy was totally unacceptable, the new Conservative Minister of Agriculture (Mr James Prior) said in London today, according to a Reuter report. Mr Prior, a fanner himself, said in an interview published today in the “Daily Express” that the British Government would have to know by early next summer if it might succeed in joining the E.E.C. He said the question of New Zealand should be left until the latter stages of the negotiations. If the other problems were solved, he said, it was unlikely there would be a breakdown over New Zealand dairy produce. The New Zealanders would undoubtedly sell less in Britain, but this disadvantage would be offset by the higher prices they would be paid. Trade Loss A member of the House of Commons said yesterday that British entry to the E.E.C. could mean £3oom in lost export trade to Canada, Australian and New Zealand alone. Sir Donald Russell, a member of the Conservative Party and chairman of the Commonwealth Producers Association, told association members at the House of Commons that abolition of the Commonwealth preference system would mean a loss of one-third of Britain’s trade with Canada and Australia, and about half of her trade with New Zealand.