E.E.C. document NEW THREAT TO N.Z. EXPORTS

Press, Volume CX, Issue 32406, 19 September 1970, Page 3

E.E.C. document NEW THREAT TO N.Z. EXPORTS

(From HOWARD WILLIAMS) BRUSSELS, September 18. A new threat to Australian and New Zealand exports to Britain is presented in a document just prepared by the Common Markets Executive Commission in Brussels.

In its efforts to wipe out surplus stocks of butter, which now total more than 300,000 tons, the commission has recommended the continuation of slaughter premiums, amounting to SUS2OO per head, for dairy cattle slaughtered or taken off milk production.

So far, 250,000 head of cattle have been killed in Europe under this scheme and the butter stockpiles have dropped by just over a hundred thousand tons.

The proposal to continue the slaughter premium—although its rules are slightly modified—was not unexpected.

But this time the commission had added a rider that dairy fanners should be encouraged to switch to sheep farming—thus directly threatening for the first time the only Australian and New Zea-

land markets hitherto regarded as safe. Exactly how a sheep-farm-ing policy will be evolved is unclear at the moment, but it is known in Brussels that the commission is eager to promote the development of all sheep products—lamb, mutton and wool —in anticipation of the entry of Britain, which is Europe’s only major lamb and mutton consumer. Sources close to the Six admit that the new idea will i still probably fail to solve the i dairy crisis, and they also admit that the development of sheep farming might lead to surplus lamb and mutton production, thus shutting off

Australia and New Zealand from the enlarged community. The timing of the proposals must be considered extremely unfortunate for the British Government, which has only just began its first round of negotiations at ambassadorial level.

The. proposals might also produce an added embarrassment to Britain’s European negotiator (Mr Geoffrey Rippon) who is in New Zealand for official talks.

i Although Mr Rippon is reputed to be determined to safeguard as many Commonwealth interests as possible, it seems that every pronouncement from Brussels these days adds weight to criticisms from Australia’s Deputy Prime Minister and Minister of Trade (Mr John McEwen). Indeed, the sheep proposals would appear to be complete vindication for Mr McEwen’s consistent pessimism about the Commonwealth’s future should Britain join the community.