TNAG-0281-FCO40-317-Visit-of-the-Chancellor-of-the-Duchy-of-Lancaster-to-Hong-Ko-1970 — Page 55

CONFIDENTIAL

Effect of visit on New Zealand Ministers and officials

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2. As a result of the visit New Zealand Ministers feel that they have got to know Mr. Rippon extremely well; that he has a thorough and sympathetic understanding of their problems; and that the British Government will do their best to put to the Community the New Zealand case for a continuing arrangement subject to review covering exports of butter and cheese in quantities as near as possible to those currently being sent to the United Kingdom, and to secure as much of this objective as possible. I think New Zealand Ministers almost certainly still harbour unrealistically high hopes that it may be possible to persuade the Six to agree to the maintenance of present quantities at least for a period longer than our own transitional period, and subject thereafter to periodical review. We have the impression that officials take a rather more realistic attitude and understand that New Zealand will probably have to accept something less, although they cannot of course admit this to us openly. And although some Ministers at least may be beginning to realise the formidable difficulties in the way of securing their full objective, as formulated earlier in this paragraph, they are likely to take a deal of convincing that we should pitch our opening bid at anything else.

Lamb

3. As regards lamb, Mr. Marshall probably felt bound at the outset to put forward a claim for a special arrangement in deference to persistent pressure from the powerful meat board. Although he and his colleagues will no doubt continue to hope that the 20 per cent common external tariff might somehow be reduced they seem to have moved nearer to accepting that New Zealand must and can live with a 20 per cent tariff, and still do very well. Their real concern is that they should continue to have access to the British market without quota restrictions.

Usefulness of visit

4. Ministers were genuinely delighted that Mr. Rippon came to New Zealand and they view the talks as being helpful and thoroughly satisfactory to them. From our point of view the visit was most useful in making the New Zealand Government feel confident that we really will do our best for them, and in removing their earlier anxieties that we might not put forward the New Zealand case as determinedly as they would wish. I would hope that it may have also gone some way to opening their eyes to the wider perspectives surrounding United Kingdom and European policies (it has never been easy for them from this distance to see, in the whole problem of British membership of the EEC, issues which can be as important to us and to an enlarged Community as those which are of particular concern to New Zealand).

Sir Con O'Neill's talks

5. Sir Con O'Neill stayed on for further talks with New Zealand officials. These too were most helpful. They gave the opportunity for more detailed discussion and clarification of technical matters with the interdepartmental team of key officials engaged on this work. And in spite of some plain speaking the atmosphere at the official talks was throughout friendly and relaxed.

Press and television coverage

6. Mr. Rippon's visit was given unprecedented coverage on television, radio and in the Press. This reflected the intense, but not particularly well informed interest on the part of the general public-not just the farming community-in

CONFIDENTIAL