CONFIDENTIAL

New Zealand, Canada, Australia and non-Commonwealth members of the

CPA

22.

23.

The future of New Zealand's agricultural produce is consid-.

ered in a separate paper. After British entry into the Community

the other exports of all three Commonwealth countries will face the

Communities' common external tariff and levics, which will be

applied progressively during a transitional period or periods.

Ministers decided in 1967 that we should not aim at

securing more for New Zealand (apart from the field of dairy

products) Canada and Australia, than the gradual application

of triffs and lovies over whatever transitional periods are

negotiated. The same applies to the non-Commonwealth members

of the Commonwealth Preference Area. No negotiating objectives

in respect of Canada and Australia were mentioned in the

statement to the Six made on behalf of Her Majesty's

Government on 4 July, 1967, and in both these countries the

Government appears reconciled to this. (It will be important

in the course of negotiations to keep these members of the

Commonwealth in touch with what is happening in Brussels; the

Canadian Government is already pressing for consultation in

advance of our entry negotiations).

Botswana, Lesotho and Swaziland

24.

The customs union between these territories and South

Africa rules out the possibility of association for them,

since they could not reduce their tariffs vis-à-vis the

enlarged Community. There is a further difficulty, in that

it would be virtually impossible to distinguish, for Community

purposes, the exports of the former High Commission Territories

/from

CONFIDENTIAL

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