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If such a policy were introduced before entry Britain would have to look at it and consult New Zealand and negotiate about it. But if we were inside the Community at the time Britain would work for a policy on sheepmeats that would suit Britain and New Zealand. Sir Con O'Neill thought that the chances of not being faced with a common agricultural policy on sheepmeats had improved since July. If the Six brought one forward at this stage they would be making unnecessary difficulties. Mr. Marshall said that it was Community doctrine that a common agricultural policy should be instituted on sheepmeats as on other agricultural produce. Sir Con O'Neill did not expect one soon. Mr. Marshall did not want to precipitate action on a common agricultural policy on sheepmeats. But he did wish to be prepared against this possibility. Mr. Rippon asked that the question be kept in the background and that Britain should not be seen to be demanding safeguards against a hypothetical situation. As things stood at present there was no grave prejudice to New Zealand's interests in sight.
14. Mr. Marshall expressed concern about the price that might be set for lamb if a common agricultural policy did develop. If current French prices were used as the standard this would have an intolerable effect on consumption. He hoped that the current 20 per cent common external tariff might be reduced on British entry. Mr. Rippon said that even if Britain did not enter the Community there might still be a tariff of 20 per cent on lamb coming into Britain. Britain was making changes in her agricultural support policy. But Britain would of course have regard to her obligations and would consult before anything like this happened. Mr. Marshall recalled that during his visit to New Zealand last year Mr. Heath had said that the level of any levy on lamb would not prejudice New Zealand interests. Britain might be able to sell fresh lamb to the Six once it entered. Sir Con O'Neill pointed out that Britain had been doing so for some years. The prospects that Britain might expand this trade from something spasmodic to something regular was one reason why he thought the Six were not keen to institute a sheepmeat regulation.
15. Mr. Marshall repeated that what New Zealand wanted was not protection but free and unrestricted access to markets. Mr. Rippon suggested that everybody wanted this in fields where they were efficient. Britain wanted free and unrestricted access for her manufactured goods to New Zealand. Mr. Marshall said that New Zealand was working towards this. Mr. Shelton added that as far as motor cars were concerned British manufacturers were unable to supply the vehicles for which they had been given increased import licences.
16. Mr. Marshall suggested that the possibility of managing the lamb market by controlling supply, because New Zealand was the dominant producer, deserved examination. He hoped that Britain would be able to agree to the study suggested in paragraph 5 of the New Zealand paper on lamb. Mr. Rippon said that this could be discussed in the afternoon meeting at official level.
Institutional arrangements
17. Mr. Marshall said that the New Zealand Government did not at present think association under Article 238 was the answer. The Community was a European association, The Six would argue against any application by New Zealand for association. Moreover New Zealand wanted to diversify its trade elsewhere. A protocol to the British instrument of accession might provide a suitable framework, to be succeeded by a trade agreement with an enlarged Community. The institutional form was not important, given political agreement on its substance. Sir Con O'Neill advised against quoting the Morocco protocol
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