Canberra, 26 July 1962
Common Market Effects on Rural Industries
Mr McEwen today commented on a speech made by the Minister assisting the Treasurer, Mr Bury, when addressing the Australian Institute of Management.
Mr McEwen said that he, for a year, had been referring to the possible adverse consequences for Australian primary industries and the Australian economy generally if Britain and other West European countries joined the Common Market on the existing Treaty of Rome terms.
Mr McEwen said that his analysis of possible consequences and his mission abroad had been to get modification of the terms to meet Australia’s problems. He was shocked that a ministerial colleague, should publicly under-cut the strength of Australia’s negotiating position by declaring that Australia had little to fear from Britain’s entry, apparently irrespective of the terms.
Mr McEwen said that on the invitation of the Government, representatives of all Australian industries had consulted the Government at home and gone to London and Brussels to make their own assessment. Without exception these industries, including Australian manufacturing industry, were in no doubt that unless arrangements importantly different from the Treaty of Rome could be made, virtually all Australian export industries, excepting wool, could be grievously hurt and their traditional marketing opportunities seriously dislocated.
This assessment was the accepted Cabinet view. ‘All these industries will be dismayed’ said Mr McEwen, ’that a Minister associated with the Treasury should so lightly brush off the threat to Australian industry. Mr Bury’s view will inevitably be quoted against us to weaken our negotiating position.
‘There is no doubt that the Australian economy would derive a desirable uplift today if a greater measure of domestic confidence could be achieved. In this I am in full agreement with Mr Bury. However, business confidence was affected here before we ever heard of the United Kingdom joining the Common Market.
‘It is quite wrong now to argue for restoration of confidence based only on grounds which run counter to the interests of Australian export industries and which put a powerful weapon into the hands of those with whom we have to negotiate in defence of our interests.
‘Today, and in recent years, the whole of the Australian capacity to grow has been too dependent on capital inflow’, said Mr McEwen. ‘I want it to be capable of being based on our overseas earnings so that we can welcome capital inflow, within limits, without becoming dependent upon it and be beholden to those who provide it.
‘That is why few things are more important to the Australian people today than that we should have the fullest opportunity to sell our exports to best advantage.’
[NAA:A1838, 727/4/2 PART 2]