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reasonable opportunities for exports including those from the

Commonwealth.

4. At the Commonwealth Prime Ministers' Conference in 1962,

the provisional agreement was criticised by the Canadians,

Australians and New Zealanders on the grounds that it was too

imprecise to afford them any assurances. They considered that

specific additional assurances on dairy products, meat and

sugar were essential.

The matter was not pursued before the

negotiations with the Six were suspended.

5.

For manufactured goods, it was agreed provisionally that

the common external tariff should be applied gradually in

three stages.

6. During the negotiations, we were told that the Six were

aware of the existence of the New Zealand problem and that they

were determined to join us in finding a solution. The French,

however, reserved their position on a special solution for New

Zealand.

7.

Because her exports consist mainly of temperate foodstuffs,

New Zealand cannot easily diversify her trade. Nevertheless,

she has made some progress on a limited scale by finding

outlets for mutton in Japan, lamb in Western Europe and dairy

products in South East Asia and the Far East. These efforts

have been supported by a vigorous publicity campaign and it is

clear that New Zealand is determined to become less dependent

on the British market.

8. New Zealand reactions to our recent approach to the E.E.C.

Mr. Marshall, the Deputy Prime Minister of New Zealand, visited

the Community capitals in June, 1966. This tour was

successful in that Ministers in the Community countries all

agreed that New Zealand was a special case and that arrangements

to safeguard her interests would have to be worked out in any

negotiations leading to British membership of the Community.

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