TNAG-0045-FCO40-81-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 154

CONFIDENTIAL

4.

The incompatibility between the Commonwealth Sugar

Agreement and the organisation of the Community market for

S

sugar means that Commonwealth sugar producers including

Fiji would lose a large proportion of their export earnings

if no special arrangement were made for the sale of their

sugar in the enlarged Community. (The world price of sugar

is about one-third of that provided for in the Commonwealth

Sugar Agreement and about a quarter of the Community's

current internal price).

•

5. Fiji in the 1961-63 Negotiations:

Agreement was reached

between Britain and the Six that Fiji was one of the

dependent territories for which Association under Part IV of

the Treaty of Rome would appear to offer the best solution.

We realized that Fiji's interests would only be safeguarded

if a solution were also found to the sugar problem. At that

time, however, the Six had not settled how the Community's

sugar market was to be organised, and for this reason they

were still refusing to discuss sugar with us when negotiations

broke down.

6.

Reactions in Fiji to the Government's recent approach

to the E.E.C.: The Governor and his staff and the Colonial

Sugar Refining Company (an Australian firm) have been following

developments closely and have a clear understanding of the

possible implications for Fiji's sugar exports.

CONFIDENTIAL