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BRIEF BY COMMONWEALTH RELATIONS OFFICE ON HOLT VISIT TO LONDON

London, 1 July 1966

Confidential

Visit by the Australian Prime Minister to London
Britain and the EEC: Talking Points

The question of British membership of the European Economic Community was covered very fully during the recent Trade Ministers’ Meeting, on 13–16 June. As the President of the Board of Trade1 explained, and as has been made clear in The Queen’s Speech and by Ministers in Parliament and outside, Britain would be ready to enter the Community provided essential British and Commonwealth interests were safeguarded.

2. There is the political will, therefore, in Britain to join the Community; the main issue is whether it would be possible to negotiate the kinds of terms which would allow British membership under reasonable conditions.

3. There must be no question of a second failure. We must therefore be sure that the Six and in particular France, also have the political will to make the negotiations succeed. We intend, therefore, to ensure that the way ahead shall be properly prepared, so that negotiations, if and when they take place, will be sure of success. It is not possible to say when or in what circumstances British membership might become the subject of negotiations, but it is unlikely that this could be brought about in the near future…. there is no evidence yet of a change in the French position.

4. The precise nature of the problems involved will, of course, depend on the circumstances at the time. As the President of the Board of Trade assured the Commonwealth Trade Ministers, the British Government will make available to other Commonwealth Governments the maximum possible information on the progress of exploratory discussions with the Community and will consult closely with other Commonwealth Governments at all stages of any negotiations. As Mr Jay has already assured Mr McEwen, we shall look forward to bilateral contacts with the Australian Government on this subject, where their special interests are concerned, as well as whatever consultations take place with the generality of Commonwealth Governments.

BACKGROUND NOTE

During the recent Trade Ministers’ Meeting the Australian Minister of Trade, Mr McEwen, displayed no great anxiety about the question of Britain’s membership of the EEC. He expressed concern that the failure of the Kennedy Round would lead to the development of regional groupings and said that although countries inside the EEC might see scope for better trade opportunities, countries outside would see only high tariff walls. In the discussion on commodities he said that now that Britain was once again considering entry into the EEC it was essential there should be world-wide agreements on commodity problems before her entry rather than after it.

2. It is difficult to assess Australian attitudes to any future negotiations. During the previous negotiations they felt it necessary to fight hard for the preservation of Australian trading interests and they would, no doubt, do so again in any future negotiations. During the previous negotiations they were particularly concerned about the constitutional implications of British membership for Commonwealth links. There is, however, increased national self-confidence in Australia in the knowledge that a beginning has been made over the past 5 years in the diversification of export markets (sugar and iron ore to Japan, wheat to China and meat to the United States). Big increases in returns from mineral exports are expected to transform the balance of payments outlook. There will still be fears that Australian exports will suffer and the most concern is likely to be expressed by the wheat, meat, dried fruit, wine growing and sugar interests.

3. Mr McEwen is reported to have said at a Press Conference, after the recent Trade Ministers’ Meeting, that he thought that Britain was thinking in terms of years rather than months before she took the step of opening negotiations. When he saw the President of the Board of Trade he referred to the undertaking given by the President to Commonwealth Trade Ministers about keeping Commonwealth Governments informed of the progress of exploratory discussions. He said that he foresaw that it would be difficult for the British Government to be as communicative with the Commonwealth as a whole as it would be prepared to be bilaterally with Australia. He hoped therefore that it would be possible for the British Government to tell Australia bilaterally of significant developments of interest to Australia. The President assured Mr McEwen that the British Government would wish to keep in close touch with the Australian Government and that he did not see any difficulty about acceding to Mr McEwen’s suggestion.

1 Douglas Jay.

[UKNA: CAB 133/329]