First position of E.E.C. rejected outright by N.Z.

Press, Volume CXI, Issue 32640, 23 June 1971, Page 1

First position of E.E.C. rejected outright by N.Z.

(From MICHAEL ROBSON, N.Z.P.A. staff correspondent)

LUXEMBURG, June 22.

Mr Marshall said in Luxemburg today that there was no possibility of agreement by New Zealand to the terms of the common position on its dairy produce presented to Britain by the Six in the E.E.C. negotiations early this morning.

Commenting on the terms which propose cutting guarantees of access to the British market for New Zealand butter and cheese to 66 per cent of present quantities by 1978—Mr Marshall said: “We are digging our toes in and there is no possibility of our agreeing to the terms the Six have put forward.

“If the negotiations are to succeed it is essential that the Six move their position.”

Mr Marshall had a 4 a.m. (3 p.m. New Zealand time) meeting with the British negotiator, Mr Rippon. He said that the British Minister also agreed that the terms were unsatisfactory.

“Mr Rippon and the British negotiating team are determined to get a better arrangement which New Zealand can accept,” said Mr Marshall. “We are still working to a common objective and I am still completely happy that that the British are safeguarding our interests.”

Mr Marshall was to have another meeting with Mr Rippon at 11 a.m. (10 p.m. New Zealand time). The British

were then due to meet with the Six again this afternoon. The E.E.C. position, reached after a negotiating session which began in the early afternoon and ended at 3 a.m. the next morning, contains six points. These are: (1) That New Zealand exports of dairy produce to the British market be guaranteed at 66 per cent of present quantities at the end of five years after British entry. This would work out at 75 per cent of the present 170,000 tons of butter plus 20 per cent of the present 75,000 tons of cheese.

(2) That in 1976 the institutions of the enlarged E.E.C. would examine the quantities of guarantees for butter and there would have to be a • unanimous decision of the 10 to allow the main-

tenance of those quantities past 1977. (3) That all guarantees for cheese would end in 1978.

(4) That during the first five years of British entry the Council of Ministers of the E.E.C. would be able to make adjustments between the quantities of butter arid cheese within the milk equivalent •limit designated. (5) That the New Zealand question and the British contribution to the E.E.C. budget be linked. (6) That a preamble be attached to the whole agreement which reads: "The E.E.C. proposes a derogation (a special arrangement) for New Zealand dairy products which is incorporated in the transition period. The rhythm of degressivity (scaling down) of quantitative guarantees for the first five years is fixed.”

As he left the Palais Kirchberg, the Luxemburg centre for the negotiations, the French Foreign Minister (Mr Schumann), who is also the chairman of the Council of Ministers at present, said that with the agreement the E.E.C. had spoken “its last word on New Zealand."

‘Definitive offer’ Mr Schumann said that this was the Six’s definitive offer. “It is certainly acceptable; it should be accepted,” he added in English. Asked if the outlook in general was hopeful he replied: “It should be. We have made such concessions on vital issues I can’t understand why they should not be acceptable.”

The Six had patched up a last-minute difference of opinion early this morning. The Six originally reached agreement shortly after midnight, but then the French withdrew over certain words in the clause covering a review of the arrangement in 1976.

After a further hour’s discussion, the Six managed to iron out their differences and once again reached a common position.

Mr Schumann, speaking to journalists before the session of the Six, indicated that he would want a British flrstyear contribution of at least 9.5 per cent of the Community’s budget, now running at SUS3OOOm a year. This is half the theoretical 19 per cent contribution the Six have already agreed Britain should make.

But they have at the same time decided to give Britain a gradually diminishing rebate, whidi remains to be fixed.

Thus the true British contribution will be known only when the size of the rebate

is agreed. Britain’s own proposal is that she should pay 3 per

cent of the budget at the start, rising to 15.9 per cent after eight years. But the British negotiators no longer make a secret of the fact that they are prepared to increase this. Mr Schumann told reporters that a proposal made earlier this month by the Community’s executive commission for an initial British contribution of between 8 and 9 per cent was “less than we are prepared to accept but not much less.” Rippon’s view In response to the proposals of the commission the Common Market’s top policyframing and exectuive body France called on June 7 for an initial British • contribution of about 11 per cent. Mr Rippon had told the Six that Britain would accept nothing less than guaranteed access for 80 per cent of New Zealand’s present exports of dairy produce to the United Kingdom at the end of the five-year transitional period. I

Mr Rippon gave the information to Mr Schumann in a one-hour private meeting. It is believed that Mr Rippon also warned Mr Schumann that the British cpuld not accept a total phasing out of New Zealand’s cheese at the end of the transitional period. Reporting back to the other Ministers Of the ■ Six, Mr Schumann is believed to have called his talks with Mr Rippon, which also included discussion of the other major outstanding issue finance as “negative and unhelpful.” Informal figure ’Thile this reaction from Mr Schumann is disappointing from New Zealand’s point of view, another aspect of his reported conversation with Mr Rippon is more encouraging. In reacting to Mr Rippon’s figure of 80 per cent in milk ' equivalents, it is believed that the French Foreign Minister said: 'ln that case New Zealand would have access for 92 per cent of her present butter quantities.” Th® remaining 8 per cent, if Mr Schumann has been reported reliably, would tally almost exactly as 20 per ce,nt of present cheese imports to Britain, which is an informal figure the commission has been proposing for some time.