TNAG-0045-FCO40-81-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 161

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The Community would consult with Canada, Australia and

New Zealand in 1966 and 1969 about the development of trade and, in the light of all circumstances, to take appropriate measures.

(c) Processed Foodstuffs

10. It was decided shortly before negotiations broke down that we should accept soft decalage (i.e. more gradual than for manufactured goods) and concentrate on trying to get the best possible tariff reductions on the most important items,

including canned fruit and dried vine fruit. No agreement

was reached before the breakdown.

(a) Lead and Zinc

11. At the breakdown of negotiations, no agreement had been

reached on the majority of the items on which we had initially

requested nil tariffs. We were, however, prepared to accept

an offer from the Six for a nil tariff for lead bullion and

super refined zinc and duty quotas for lead and zinc.

12.

Since 1963 Australia has made an effort to diversify her

trade and has tended to concentrate on the Japanese market.

We were still Australia's main trading partner in 1965-66;

but Japan and the United States came a close second and are

In recent years likely to replace us in the current year.

Australia's exports to the United States have been growing at the rate of 18% a year and to Japan at 15% while those to

Britain have been virtually stagnant.

Reactions in Australia to the Government's new initiative

towards the E.E.C.

13.

The official attitude of the Australians to our approach

to the Community will be conditioned by the success or

otherwise of their current negotiations with the Americans and

Japanese in the Kennedy Round. But Australian press reaction

has been mild and even sympathetic. Leader writers have

tended to argue that British membership of the Community has

/already

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