U.K. visitor sees effects of E.E.C.

Press, 8 April 1978, Page 4

U.K. visitor sees effects of E.E.C.

A new awareness of how Common Market agricultural surpluses hurt New Zealand has been gained by an influential British visitor. Mr John Davies, the British Conservative Party’s shadow Foreign Secretary, ■.aid m Christchurch yesterday that he had not the extent to which E.E.C. ■surpluses had damaged New Zealand’s export opportunities outside the Cort)munity.

The Community, in per suing its internal agriculture policies, should not damaet world markets, he said The I need seemed to be to attach the creation of E.E.C. surpluses at the roots.

Mr Davies strong!' denied a suggestion that the Communitv’s Common Agricultural Policy was a major unsetting force in other countries because of its restrictive trading policies and that its impact could be more serious than that of Communist bloc countries

i The extent of New Zea-j I land's trade with the E.E.C.,1 including Britain, he said.; was evidence that it was not: unpredictable and uncertain.! even though the trade might I not be as big as New Zealand might like. In contrast, trade with the I I Soviet Union in agricultural products was much more uncertain, depending on the unpredictable nature of that, i country’s own agricultural j i production This, he said,; was something of which New

Zealand was aware in the products that it sold to the Soviet Union, and it also! applied to other products like wheat. But Mr Davies agreed that the Community could be a difficult and troublesome customer for a third-party country like New Zealand. This ' was bound to be the case 'when preference was given to local agricultural products. The best prospect, he said, i seemed to lie in modification ‘of the Common Agricultural Policy so that it was less likelv to create surpluses. Mr Davies does not believe that Bntish membership of the E EC. has been largely ’■"sponsible for the increase in the cost of food in Britain. Rather this had been ’■aused by foods, like sugar from outside the Community, i he said

Mr Davies is confident ’that the Conservatives will come to power in Britain and that Mrs Margaret Thatcher j will be Bfi’ain’s next Prime Minister. He said he took more notice of bv-election results than opinion polls In [the last 18 months in everv ihv-election public oninion had shifted substantially in favour of the Conservatives. The last bv-election four ; weeks ago had brought a 6' per cent movement to the party.

Mr Davies has told New Zealand Ministers of his concern about increasing Russian interest in the South

Pacific, reports the Press Association. The Soviet Union in recent years had '“tended to switch its line of intrusion in Western affairs from somethin in the nature of direct confrontation to something in the nature of sub versive activities.” Mr Davies said there was no evidence so far of such intrusion, but "it could well develop and it is something iwe have to hr. extremely (watchful about.” Answering question* about growing New Zealand trade I links with rhe Soviet Union | and the signing of the fishing aereement thi* w*>ek. Mr Davies said care must he tak<=n to «eo that “perf«ctlv i normal commercial erranee!mints’’ were not followed hv “far more subversive ; activities.”