TNAG-0045-FCO40-81-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 158

CONFIDENTIAL

BRIEF NO. G.1

EUROPEAN ECONOMIC COMMUNITY

PART III

BACKGROUND NOTES

AUSTRALIA

Four-fifths of Australia's export earnings are derived

from primary products, of which both the seasonal yield and

prices may vary widely. In 1964/65, Australian exports

amounted to £1,060 million, of which £206 million (20%), came

to Britain. Exports to the Community totalled £159 million

(14.5%). In the same year, we took the following percentages

of Australian exports:-

beef and veal

butter

32% (£26m.)

83% (£20m.)

sugar

38% (£17m.)

lead

57% (£10m.)

wheat

9% (£10m.)

canned fruit

75% (£ 8m.)

mutton and lamb

30% (£ 5m.)

zinc

70% ( 4m.)

We also took 14% (€40 million) of her wool; but the Community

common external tariff on wool is nil.

2. It is apparent from these figures that, despite the fact

that Australia has diversified her trade considerably in

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recent years (see paragraph), Britain remains a major market

for several important commodities. Thus, if Britain were to

enter the Community without safeguards for Australian trade,

some thing like £150 million worth of exports could be affected.

While the key commodities are those listed at paragraph 1,

exporters of fruit (both fresh and dried) and wine would also

be affected.

CONFIDENTIAL

13.