TNAG-0281-FCO40-317-Visit-of-the-Chancellor-of-the-Duchy-of-Lancaster-to-Hong-Ko-1970 — Page 42

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CONFIDENTIAL

Document No. 22

RECORD OF MEETING BETWEEN THE RIGHT HON. GEOFFREY RIPPON, Q C, M P, CHANCELLOR OF THE DUCHY OF LANCASTER, AND THE NEW ZEALAND CABINET COMMITTEE ON OVERSEAS TRADE POLICY AT WELLINGTON, ON 22 SEPTEMBER, 1970

Present:

The Right Hon. Geoffrey Rippon, QC,

M P

HE Sir Arthur Galsworthy

Sir Con O'Neill

Mr. Tickell

The Right Hon. Sir Keith Holyoake, GCMG, CH, MP, (Prime Minister) (for most of the meeting)

The Right Hon. J. R. Marshall,

(Minister of Overseas Trade)

The Hon. N. L. Shelton, (Minister of

Industries and Commerce)

The Hon. D. J. Carter, (Minister of

Agriculture)

The Hon. H. E. L. Pickering,

(Associate Minister of Finance) Mr. A. D. Dick, MP, (Parliamentary

Under-Secretary of Agriculture)

The limits to the New Zealand claim for special arrangements

Mr. Marshall said he wished first to explain the limits of his Government's claim for special arrangements to safeguard New Zealand interests when Britain entered the EEC. The claim was confined to butter, cheese and lamb. New Zealand was concerned about such other commodities as apples and pears, and hoped that it would be possible to find some means of ensuring continued access for these products to the British market; but there was no suggestion that the economy would collapse without such access. The New Zealand Government's position on beef and other exports to Britain was similar. For such products New Zealand would expect the same terms in future as other third country suppliers.

2. Mr. Marshall said that transitional arrangements for New Zealand were not enough. But he recognised that it was unreasonable to ask for anything permanent. What his Government wanted was a continuing arrangement subject to review. New Zealand was seeking the maintenance of her trade at current levels but with no provision for growth (so far as butter and cheese were concerned) as in the past. The idea of maintaining New Zealand's earnings from her exports of dairy products rather than their volume was simply not realistic. Mr. Rippon said that a guaranteed volume was something Britain could not be sure of getting, but he would do all he could. Mr. Marshall said that he did not believe any limitation on quantity was necessary or should be accepted on lamb. The Six tended to say that New Zealand should not expect to be able to trade with Britain as in the past. In the immediate future there would certainly be severe limitations on New Zealand trade with the enlarged Community. There would be a substantial tariff on lamb. There would be limitations on butter and cheese. There would be restrictions on trade in other products. There was therefore no justification for saying that the special arrangements sought by New Zealand would enable New Zealand to avoid the pain and anguish of adjusting to an altered situation.

CONFIDENTIAL