BUTTER PROBLEM IN E.E.C.

Press, Volume CVI, Issue 31086, 15 June 1966, Page 6

BUTTER PROBLEM IN E.E.C.

(Special Crspdt. N.Z.r.A.) i ; LONDON, June 13. ■ Butter is the most difficult problem for ■ New Zealand in the event of Britain entering the Common Market, the Minister of ' Overseas Trade, Mr ' Marshall, said in London today. ! The Common Market coun- ' tries were self-supporting in butter and had small surpluses which they tried to , dump on the British market, , he said. The price ot butter in the Common Market countries was twice the price of but- . ter on the British market. “If Britain goes in, the

price of butter must rise,” he said. Mr Marshall said one of the possible solutions in overcoming the great differences in consumer prices for butter in the Common Market countries as compared to Britain was the setting up of a fund, the purpose of which would be to finance the surplus disposal of butter from the Common Market to developing countries. Another possibility was consumer subsidisation aimed at increasing consumption. Lamb Demand Mr Marshall said that he did not anticipate such difficulties with regard to lamb. “There is a demand for lamb in Britain which will continue. Problems would relate to free access to the British market, whereas the Common Market countries impose a 20 per cent duty.” Mr Marshall said that one of the objects of his visit to

Britain and Europe was to obtain assurances of meat acess and if possible a reduction in duty. Mr Marshall said that public statements by the British Government indicated that New Zealand’s position was understood and that it was accepted in principle that special arrangements would have to be made. “It is to firm up these statements of principle and how they will be achieved in practice that I am here,” he said.

The Minister said that he felt New Zealand had made satisfactory progress up to August, 1962, in making its position known, when Britain first tried to join the Common Market. “At that time five of the six agreed that New Zealand was a special case. France reserved its position. I believe we can start from that point now.”