TNAG-0281-FCO40-317-Visit-of-the-Chancellor-of-the-Duchy-of-Lancaster-to-Hong-Ko-1970 — Page 52

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among the Six Governments and in the Community. I think if I may say so, Mr. Prime Minister, that that is so. And every effort has been made to educate the Community on the facts of the problem, because I am sure this is a case where the more people know the facts the more they will understand both the nature of the problem and its reality and the sort of solution that we must seek together.

Of course, Sir, and this has not always been fully recognised, New Zealand has already shown remarkable resourcefulness and adaptability in diversifying her general trading patterns. I studied the valuable report of your Monetary and Economic Council and was very much struck by some figures which it gives illustrating how much diversification has already taken place.

Your exports have shifted, as I understand it roughly speaking from an 84 per cent dependence on us in 1938-to a 56 per cent dependence in 1958- and to a dependence of 39 per cent in 1969. Well that is a remarkable change. But there is a natural limit on that process and whatever changes have been made our trade together-yours and ours, as Mr. Kirk pointed out-remains of great importance to both our countries. It is a two-way process, trade, and we hope for our part New Zealand will be ready to buy British as we are to buy your produce and I welcome Mr. Kirk's wish which, I am sure you, Sir, share, should continue to be the position.

I do not want to raise exaggerated hopes of unrestricted permanent protection so far as your exports of dairy products are concerned, we will never get that sort of protection in the world in which we live. But what I do say is that they clearly present a special problem that the Six and ourselves must face fairly and squarely.

Special kind

We have made this clear all along the line, right from the very outset and I believe it is understoood now throughout the Community that New Zealand's case is of an altogether special kind and should be treated as such. We cannot be dogmatic at this stage in attempts to insist on any particular solution, but I believe the object of all 10 nations who are participating in these negotiations to enlarge the European Communities is to achieve the benefit of all-not the detriment of anybody.

To ensure the benefit without detriment to various interests here and elsewhere does raise problems for the Six as well as for the applicant countries.

Now Sir we must approach these negotiations assuming the necessary goodwill on both sides to solve common problems. We are not at arms length drawing up claims and counter-claims, we are negotiating, not litigating. And speaking as a lawyer there is a very great difference between the two terms, we are friends and allies trying to secure the stability and prosperity of Europe and so promote peace and progress for us all. And we'll see as negotiations go on how successful we are together in this venture.

In this spirit I am confident that the necessary political will exists to secure the special arrangements that are necessary for New Zealand.

Consulting together

Meanwhile, we remain in close and continual touch with the New Zealand Government and it is our intention in Britain to remain so at all stages of the negotiations. As they proceed we will consult together and if the situation

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