NR
From the Private Secretary
Dear John,
CONFIDENTIAL
(ET MON)
PROI
Not much here
10 DOWNING STREET
MKKO 40/5
RECEIVED IN NUO BLAH
INDEX
1983
after.com
7 CH18
CM 18/10
SPOO
PS/ Lady
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A10
•Dong (S/M lishind LED! 'ASIPUS
10 October 1983 hiited
Mr. Amis
VISIT OF NEW ZEALAND MINISTER FOR FOREIGN AFFAIRS AND
OVERSEAS TRADE
M Donald
Hannew
ECD(E)
~
MES CED
Thank you for your letter of 7 October. Mr. Cooper called on the Prime Minister this afternoon. He was accompanied by the New Zealand High Commissioner and Mr. Woodfield of the New Zealand Department of Trade and Industry. Mr. Donald was also present.
The discussion, which lasted for 30 minutes, was largely of a general nature. Mr. Cooper said that his call earlier in the day on the Secretary General of GATT had not led him to be encouraged about the prospects of trade liberalisation. Minister said that in her view the most we might be able to achieve at present was to prevent increased protectionism.
The Prime
As regards New Zealand's EC quota for butter, Mr. Cooper explained that on his last visit to Europe in February he had urged that the quota should be maintained at 87,000 tonnes. Later the Commission had proposed 80,000 tonnes reducing by 2,000 tonnes in each of the succeeding four years. Partly as a result of intervention by the Foreign and Commonwealth Secretary, partly because of a result of New Zealand's own efforts, the Commission had then proposed an initial quota of 83,000 tonnes reducing by 2,000 tonnes each year to 75,000 tonnes in 1988. Over the next fortnight he would attempt to persuade the Commission to raise the proposed quota to 85,000 tonnes, again reducing by 2,000 tonnes a year. The Prime Minister said that we would continue to give New Zealand our support. Mr. Cooper commented that everybody in New Zealand was both aware of this problem and aware of the constant support which New Zealand received from the United Kingdom. If New Zealand could retain a five year arrangement without a review, they could accept a reduction in the initial quota from 87,000 to 85,000 tonnes. Given the problems within the Community about the budget and the CAP it was unrealistic to ask for more. The market provided by the Community for New Zealand butter and sheepmeat was the cornerstone of the New Zealand economy. New Zealand would be running a deficit of about 9.5% of GDP this year. This was due partly to the high cost of Government services, partly to the poor return on agricultural products and partly to the need to import capital for oil and gas expansion.
COMPDENTAL
/As regards