French ‘gesture’ on butter possible

Press, Volume CXI, Issue 32639, 22 June 1971, Page 1

French ‘gesture’ on butter possible

(From RICHARD BREEZE, Paris correspondent of "The Press")

PARIS, June 21.

President Georges Pompidou has told French negotiators to show a new subtlety over the question of New Zealand in today’s crucial Luxemburg talks.

Officials here said this was “a gesture” that Mr Pompidou had decided to make after restudying the New Zealand question since the Paris talks.

French negotiators will be very subtle on the question of New Zealand butter. They may go as far as accepting that Britain import during the transitional period 60 per cent of the butter it gets from New Zealand at present,” said the officials.

“On the question of New Zealand cheese, however, the French will remain intransigent,” they said. “Mr Pompidou holds that in present French market conditions butter presents more of a problem for the Netherlands and Denmark.” The French do not want it

to seem that they are taking a “pound of British flesh” at Luxemburg by dealing toughly on New Zealand. The French President, however is holding a hard line on cheese. French cheese France has 600 types of cheese and Mr Pompidou intends to keep this variety. A lot of cheese is produced by farmers in the Massif Central, the President’s birthplace.

Mr Pompidou is reported confident that agreement will be reached in Luxemburg. The French expect a marathon meeting, lots of patience and “a spirit of compromise” being needed. They see • the main issue, apart from New Zealand, as being the Community budget contribution. This should be about 18 per cent after five years as against 15 per cent, suggested originally by Britain, and the 21 per cent demanded by France.

Budget question A British concession on the Budget question has often been seen as the key to a change in the French position on New Zealand products.

The New Zealand Press Association staff correspondent in Luxemburg, Mike Robson reports that safeguards for New Zealand’s Cheese sales in the United Kingdom could produce the toughest negotiations over the next two days-

Transitional period

It is understood that France may ask that, in return for a generous percentage guarantee on access for New Zealand butter after British entry to the E.E.C., preferences for the 75,000 tons of cheese 1

New Zealand sells each year would be phased down to nothing or to an extremely small percentage over a fiveyear transitional period from 1973.

The French argue that cheese guarantees are not as important because British housewives will continue to buy New Zealand Cheddar on taste preference, even if they have to pay-a premium over the varieties produced in the E.E.C.

This argument is met with scepticism in Ne'w Zealand circles.

First, there is the fact that New Zealand Cheddar is at present one of the cheapest cheeses available in Britain, and there is every reason to

believe that sales—second in quantity only to Cheddar produced in the United Kingdom —are based to a large extent on price margins. Second, there is the fact that British production under the higher prices offered for milk by the agriculture policy of the Six will almost certainly expand a claim to a larger share of the cheese market.

Third, is the fact that when the agriculture policy was strictly applied in the E.E.C. in 1968, New Zealand cheese sales of about 6000 tons a year to E.E.C. countries fell away to nothing.

‘Hard fight’ For these reasons, Mr Marshall is likely to fight hard against the idea of dropping cheese guarantees.

There are some indications, however, that he might come under pressure from Mr Rippon to accept such a compromise.