TNAG-0045-FCO40-81-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 159

CONFIDENTIAL

Australia in the 1961-63 negotiations

(a)

Agriculture

3. During the 1961-63 negotiations (which took place before

the working out of the common agricultural policy was far advanced) provisional agreement was reached with the Six on

the transitional and longer-term arrangements which would apply

to cereals but it was envisaged that they might also be

adopted for other temperate agricultural products.

During

the transitional period, cereals enjoying preference in the

British market would be allowed to benefit from the intra-

Community preferences but this would be phased out; it

would be fixed in such a way as not to cause a sudden and

considerable alteration in trade patterns; but, if it did, its

application would be examined in consultation with the

Commonwealth countries concerned. The longer term

arrangements envisaged international commodity agreements

and the pursuance of a price policy which offered reasonable

opportunities for exports including those from the Commonwealth.

4. At the Commonwealth Prime Ministers' Conference in 1962,

the provisional agreement was criticised by the Canadians,

Australians and New Zealanders on the grounds that it was too

imprecise to afford them any assurances. They considered that

specific additional assurances on dairy products, meat and sugar

were essential. The matter was not pursued before the

negotiations with the Six were suspended.

5. Negotiations are now in progress in the Kennedy Round for

new international arrangements governing trade in cereals, in

meat and in dairy products, of which the first is much the most

important for Australia. If a significant measure of

agreement is reached on cereals in the Kennedy Round, this could

make a big difference to the implications for Australia of

British entry into E.E.C.

CONFIDENTIAL

16.