British High Commission, Canberra, 20 October 1967
Confidential
Since the party of Australian officials, who were in London recently for the trade talks,1 returned to Canberra we have sensed that they were rather disenchanted with their experiences in London. Alan Westerman is not back yet, but we have heard indirectly that the other officials felt that the atmosphere at the talks was not markedly friendly.
2. In today’s ‘Financial Review’ there is a long piece by the paper’s economic reporter in Canberra, referring to the talks and indeed to many other subjects. I am enclosing a copy of this report. I have little doubt that the story was inspired by people in the Department of Trade, to which the reporter has added bits about defence and foreign policy. You will see that he uses such phrases ‘the hardness’ of our line, and the ‘off-handed treatment’ accorded the delegation.
3. The ‘Financial Review’ story also refers to Mr McEwen’s statement in Parliament yesterday, when he tabled amendments to Australia’s Customs Tariff to give effect to the Kennedy Round changes. It is an interesting speech which you may care to read, (I am enclosing a copy), but I would draw your attention particularly to the passages on Britain’s application to join the EEC on pages 16 (final paragraph) to 19 (first paragraph). On essential interests, the Minister said ‘little else appears to be envisaged for other Commonwealth exports, beyond phasing in of Community levies and tariffs over a transitional period’.
4. This, as I understand it, is all that Australia can expect. But there is the point that Australia’s only response to our invitation to define her essential interests has been to include all her exports as essential items. The ground is being prepared here for the Australian view that we are offering nothing but transitional periods: nothing is being said, naturally, of Australia’s inability or unwillingness, for political reasons, to give a reasonable list of essential interests. I think we must watch this, and if we find the theme is repeated often, and to our disadvantage, we may have to consider a counter to the story.
I am sending a copy of this to Bill Hughes.
1 Document 240.
[UKNA: FCO 20/54]