London, 9 October 1967
Anglo-Australian Trade Talks
I submit a note reporting on the first stage of the talks with an Australian delegation led by Sir A. Westerman. From this Department’s point of view, the most important point was the Australians’ wilful refusal to recognise that we are not seeking for them in our negotiations with the EEC countries anything more than transitional arrangements.
2. It seems necessary that during the second stage of these talks, which will take place on October 16 and possibly 17, we should make this point to the Australians in writing so that they cannot afterwards claim that we left them in any doubt about it. If we do not, we shall lay ourselves open to charges of bad faith at a later stage which could be very damaging to HMG.
3. The Board of Trade have been inclined to handle the Australians too gently on this matter, on the grounds that, the sooner we made it clear that we are contemplating abolition of Commonwealth preferences in the British market, the sooner will Commonwealth countries be inclined to abolish ours. This seems unrealistic because:–
- Everybody has known for months that we have to accept abolition of Commonwealth preferences in Britain over a period after we enter the Community;
- in any case Ministers have made it clear in public that nothing better than transitional arrangements can be obtained for the Australians. (Unfortunately, the only occasion when this was explicitly rather than implicitly stated was not widely reported.)
4. I submit a draft to Sir R. Powell accordingly.
[UKNA: FCO 20/54]