N.Z.E.E.C. QUESTION Little support for France’s stand

Press, Volume CXI, Issue 32543, 1 March 1971, Page 2

N.Z.E.E.C. QUESTION Little support for France’s stand

(N Z.P A. Staff Correspondent)

LONDON, February 28.

The French are apparently receiving little support from other members of the Six for their tough line on the New Zealand-E.E.C. question, according to informed sources in Brussels.

It is also believed that the other five countries are leaning towards offering Britain better terms for a special arrangement for New Zealand dairy produce if entry negotiations succeed. The present terms were recommended in a commission paper late last year.

A meeting of the permanent representa-: fives of the Common Market countries discussed Ney, Zealand on Friday and it is expected they will present a report to the Council of Ministers’ session set for tomorrow.

The report, however, is unlikely to go beyond setting out the position of the various Governments and it is not thought probable the Ministers will be able to come to a common position on the New Zealand problem. But the possibility of agreement before the March 16 negotiating session with Mr Rippon is not ruled out, especially if the Six decide to hold a prenegotiation meeting. Strong view The French maintain that New Zealand should have no special privileges after the five-year transitional period. They say that any continuing arrangement would be against the principles of 'the Rome treaty and that the whole structure of the common agricultural policy would be threatened.

This is a more severe position than the commission took in a paper decided on in Strasbourg in November but which has still not been officially released. In this paper the commts-

; sion called for New Zealand Jto be left with a guarantee of 50 per cent of present butter sales to Britain after five years and suggested that if no international dairy agreement had teen reached by then, the position should be reviewed. ; Cheese sales, however, should be phased out over (the transitional period, the : paper said.

Dutch concern

The strongest support for a generous deal for New Zealand has come from the Dutch.

Worried about the possibility of harming their own investments in re-combination plants in South-East Asia if New Zealand were forced out of the European market, the Dutch have suggested allow-

ing New Zealand to retain as much as 70 per cent' of her present British market for dairy products at the end of five years.

Italians, with little stake in the matter, have also apparently suggested it would be unwise to cripple New Zealand’s economic future and that a fair solution should be worked out.

Until the latest meeting the Belgians had supported something close to the French position but it is believed they have modified this view to a considerable extent and may be now prepated to support a much more favourable settlement. Luxemburg will undoubtedly follow the Belgian line.

West Germany, formerly uncommitted, is also believed to have taken a stance relatively favourable from New Zealand’s point of view.

Cheese chance

While the situation is still extremely fluid, it is thought that the various countries, with the exception of France, are paying more attention to the British proposal to express any percentage of New Zealand’s present trade granted in the special arrangement in milk equivalents. This is regarded as important from New Zealand’s point of view because it would allow flexibility between butter and cheese.

If the French can be persuaded to modify their allout opposition, the Community could well come to a common point of view to present to Britain. On the other hand, should the French be particularly unyielding, the Six could drop back to the commission position as a first negotiation position or they could decide to shelve the whole matter for further discussion among themselves.