TNAG-0281-FCO40-317-Visit-of-the-Chancellor-of-the-Duchy-of-Lancaster-to-Hong-Ko-1970 — Page 32

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CONFIDENTIAL

In trading terms then we are nothing like so dependent on each other as we were. That does not mean that Anglo-Australian trade is not still very important. And if we are both prosperous it can only grow more so. I realise moreover that our membership of the Communities may well have repercussions on some sectors of your economy. I am well aware how vital this matter is for some of your farmers in economic and human terms. I promise you that we shall treat it extremely carefully and seriously in close consultation with your Government. This is, when all is said and done, a matter of mutual concern. We have made it plain that we shall seek the longest possible transitional period in which to resolve these initial impact difficulties.

I know that Australian opinion is worried about some aspects of Community policy, particularly about the common agricultural policy. We understand that very well, though we shall accept the common agricultural policy which is part of the fabric of the existing Community. But in the long run, as Community countries have made clear, they are as anxious as anyone to remove the anomalies, and particularly to solve the problem of surpluses, the disposal of which is now a matter of concern to you. I do not deny that there are serious problems but the problems are not of anything like the same order of importance as the opportunities. Don't let us underestimate those opportunities for trade, business and collaboration which an expanded and dynamic Community can offer to the whole world including Australia. I have spoken about the prospects for future collaboration between a prosperous Britain within the EEC and a swiftly developing Australia.

Perhaps I could cite just one instance of the type of collaboration I have in mind.

Centrifuge

Before becoming Chancellor of the Duchy of Lancaster, I was Minister for Technology. One of the tasks of that Department was to bring about collaboration between Britain, the Netherlands and Germany on the development of a centrifuge process for the enrichment of uranium. This is the process on which Europe's future power supply will be largely dependent. Only the combined resources of some of the major industrial countries of Europe can enable us to carry out developments of this magnitude.

The tripartite European organisations have offered to make available to Australia the facilities for development of this process in your country. Just before I left Britain I read of your massive new uranium find in the Northern Territory. Raw uranium oxide is worth about £7,500 per metric ton. By contrast, enriched uranium of the grade which Australia might need for her own power stations, or for export, is worth about £60,000 per metric ton. It is for Australia to determine where her interests lie, but with so much of Australia's development potential based on minerals I would think processing facilities of this type would be the kind of development which you would want to see undertaken. We, for our part, would like to use our strength as members of a European Community to work with you on them.

Record of EEC with regard to trade and aid

In this context I do not think you should underestimate the fundamentally liberal attitude of the Community to international trade in general, shown notably in its willingness in the Kennedy Round to cut the common external tariff to very low levels. I believe that this liberal policy will continue and develop. The

CONFIDENTIAL