Mr Kirk favours Pacific trade approach to E.E.C.

Press, Volume CXI, Issue 32524, 6 February 1971, Page 17

Mr Kirk favours Pacific trade approach to E.E.C.

(N.Z PA. Staff Correspondent) WASHINGTON, Feb. 4. The idea of developed nations of the Pacific getting together to make a joint approach to the European Economic Community for special trade talks appeals to the Leader of the Opposition (Mr Kirk).

During talks with top economic and trade officials during his 10-day visit to Washington, he became increasingly aware of the possibility of a wave of trade protectionism sweeping the world after enlargement of the E.E.C.

He found that the possibility is causing a great deal of concern within the Administration. But he also discovered that in view of Washington’s general policy of support for a united Western Europe being formed through enlargement of the E.E.C., there seemed little chance of the United States taking the initiative to promote talks between the Six and nations of the Pacific basin.

It appeared, however, that a number of Administration officials would look sympathetically upon a request from one of America’s Pacific partners for a group meeting to discuss the possibility. Nations which might be involved in such a discussion could include the United States, Australia, Canada, Japan and New Zealand, Mr Kirk said in an interview before leaving for New York. Avoid reaction “There seems to me reason to consider whether a joint approach to the Six by these countries in the near future might at least avert British

entry turning into a chain reaction of trade protectionism,” Mr Kirk said. “The problem is essentially that there could be a chance of a trade war developing once the nations of the Pacific find themselves confronted by a wider net of trade barriers in Europe. “The General Agreement on Tariffs and Trade is clearly incapable, at least quickly, if at all, of sorting out the differences that may arise. And once the four applicants for entry into the E.E.C. have been accepted—if they are—the Community itself is likely to be so involved in settling internal difficulties which will arise through enlargement that it will be unwilling to embark on major international trade negotiations.” said Mr Kirk. “Assuming that it will take several years to make the adjustments involved, it appears to me that Pacific countries need to reach an accord on trading matters with the Six before enlargement is finally agreed.” Joint approach

Mr Kirk said that out of common interest an indication to the Six of united Pacific concern about possible developments might at this stage influence the Community to adopt a more liberal approach towards trade issues involved in the enlargement question. A joint showing of concern might also serve to soften the attitude of the Six toward the special trading problems posed by New Zealand, said Mr Kirk.

“Any move which might help achieve this would seem particularly worth while in view of the views expressed recently on behalf of France by its Secretary of State for Foreign Affairs. "I think the idea of joint talks to consider an approach to the Six well worth consid-

ering. It seems the initiative will not come from Washington but that if the proposition were firmly put forward by one of America’s Pacific partners the United States would probably be prepared to accept it.

“Should nations such as the United States react against measures taken in Europe by putting up further trade barriers, the trading interests of New Zealand and

Australia would suffer considerably. Finding outlets for their produce in Britain heavily reduced, and other markets tending to contract, they could encounter extremely chilly trade winds. "If the idea appeals to the Government I would urge it to act quickly. Time is not on our side as far as continued high quantity access to the British market is concerned,” said Mr Kirk.