Aust. E.E.C. Warning May Affect N.Z.

Press, Volume CX, Issue 32381, 21 August 1970, Page 26

Aust. E.E.C. Warning May Affect N.Z.

(N.Z.P.A. Stat Correspondent) LONDON, August 19. The tough line taken by the Australian Trade Minister (Mr John McEwen) over British entry into the Common Market may affect New Zealand. Officially the British Government has made no reply to Mr McEwen’s warning that

Britain’s entry into the E.E.C. may rule out traditional trade links in the Commonwealth, but behind the scenes there is worry that a more belligerent Australian attitude may upset the delicate negotiations.

From New Zealand’s point of view, the problem is whether Whitehall, in an effort to placate Mr McEwen, will agree to taking a harder line

for more favoured treatment for Australia. If this happens the impact of New Zealand’s drive for “special” treatment may be blunted and E.E.C. suspicion of the Commonwealth as a stumbling block increased. The Six have warned Britain many times that “hardship” cases to be considered in the negotiations must be kept to a minimum, and there is little doubt that they consider Australia well outside the “hardship” category. HOME CONSUMPTION?

The British, for their part, are hoping that Mr McEwen’s outburst was for home consumption.

t Informed sources at White--1 hall say that the position to be taken over Australian trade was fully explained to Mr McEwen when he visited London last month, and that he did not, at that time, express the misgivings about Commonwealth trade which have come to 'light since his return to Canberra. Another theory is that Mr McEwen wak annoyed by the reception he received at the Common Market headquarters in Brussels. BELLIGERENT While in Brussels, Mr McEwen did take a belligerent stand in press conferences, and apparently in talks he . had with E.E.C. officials he [made it clear that Australia t feared the enlarged market ; would be inward-looking in . trade policies and follow a i “dumping” policy with regard '* to excess agricultural pro- ■ duce.

1 There is also reason to be- ' lieve that Mr McEwen was ! annoyed when his assurances 1 that Australia would do no- • thing to Interfere with New ' Zealand’s special case were greeted by E.E.C. officials with either indifference or the attitude that this was to be expected anyway. . With regard to Mr McEwen’s assertion that Britain’s entry into the E.E.C., if it endangered Australian trade, would be in violation of the General Agreement on Tariffs and Trade, the British are saying this is a very narrow interpretation of the agreement They say Mr McEwen is

correct in stating that the rules of G.A.T.T. allow two or more countries to join in a customs union only as long as no new barriers are raised to trade, but that the fact that the Common Market external tariff is in general much lower than the British level will also be taken into consideration and in the end is likely to carry far greater weight in any consideration of Britain’s entry. Mr McEwen’s statements have stirred up the never, very-long dormant anti-market group in England. Sir Harmar Nicholls, a former Conservative junior Min ister and now the member for Peterborough, immediately called for an answer to Mr McEwen’s remarks from “someone of equal standing in Britain.”

“The case for weakening our world and Commonwealth trade contracts in return for a bigger European market based on the Treaty of Rome is unthinkable in the absence

of miraculous terms from the E.E.C., which are now more unlikely than ever,” he said. There would be dismay about Mr McEwen’s remarks in Britain and in Australia, and this dismay would flow to New Zealand, he said.