42
CONFIDENTIAL
programme or some other form of quota system would however be necessary. Sir Con O'Neill pointed out that the common agricultural policy did not permit quotas. Mr. Rippon said that Britain accepted the common agricultural policy. Britain would have to seek some derogation from the CAP to accommodate New Zealand. This could not be permanent. It was easier to seek a continuing arrangement subject to review for certain commodities since such a request was less obviously a precedent for breaching the doctrine on the common agricultural policy. Mr. Marshall said M. Deniau had also expressed this thought to him: that it was important to use a form of words that did not do too much violence to Community doctrine on the common agricultural policy. Mr. Rippon emphasised that it was one thing to agree to a policy with exceptions. It was quite another to alter the policy. In joining the Community Britain was bringing both advantages and problems. It was necessary to hammer home to the Community the need to resolve problems which had been jointly identified. When the Community response to a British approach emerged it might be necessary to adjust the approach. A long transitional period, which did not amount to a permanent arrangement seemed most likely to be acceptable. If the Six could be persuaded to accept this concept then we should make progress. Better results might be obtained by putting reasonable requests to the Community rather than by making a frontal assault on doctrines dear to them. New Zealand had to trust in Britain's goodwill. Britain in turn had to trust that a similar goodwill existed among the Six.
Lamb
12. Mr. Marshall asked for a special arrangement for New Zealand lamb. Mr. Rippon drew a distinction between dairy products and lamb. New Zealand was heavily dependent on all three but as long as there existed no common agricultural policy on sheepmeats, lamb was not a pressing problem. Success in obtaining special arrangements for butter would make it easier to arrive at arrangements for cheese and easier still to arrive at arrangements for lamb. If there was no accommodation on butter there would be none on the others. He was ready to press the case for such arrangements for New Zealand dairy products but not at present for lamb.
13. Mr. Marshall said that of the 420,000 tons of mutton and lamb exported by New Zealand 320,000 tons went to Britain. New Zealand thought there would be a short-fall of sheepmeats in the enlarged Community of this order and because of increases in the price of other meats could see an opportunity to increase New Zealand exports. While he was more relaxed on lamb he could not agree that there was no problem. New Zealand's past experience with the Six had not been encouraging. The common external tariff was 20 per cent but quantitative restrictions prevented sales to France and only small quantities were allowed into Italy and Germany. New Zealand wanted unrestricted access to the enlarged Community, not quotas. Sir Con O'Neill pointed out that since there was no common agricultural policy on sheepmeats the current quantitative restrictions were a bilateral rather than a Community problem. Mr. Rippon said that Britain wanted unrestricted access to Britain for New Zealand lamb. We could keep this as long as there was no CAP on sheepmeats. If the Six were to institute a CAP on sheepmeats this would present a new problem which must come into the negotiations. Mr. Marshall asked if Mr. Rippon would say this publicly. Mr. Rippon did not want to raise the issue publicly since it might provoke a Community reaction. He had already told the Six that lamb was important to New Zealand. Sir Keith Holyoake asked if Mr. Rippon thought that Britain could avoid a common agricultural policy on sheepmeats. Mr. Rippon thought so.
CONFIDENTIAL