Common Market-What

It Could Mean

What we have discussed on the previous pages is the political complex now {July, 1962) spreading like a cloud across the hitherto tranquil South Pacific.

It is made the more disturbing because it is, right now, all mixed up with another complex, this one economic.

UNDER the pressures created by such things as— the loss of her enormous overseas investments, dissipated in World War II; the disintegration of her vast Colonial Empire; the obligation of a weakened national economy to maintain an armed organisation to resist the thrust of world Communism, Great Britain has been forced, step by step, to abandon an Imperial or Commonwealth economic structure evolved through 200 years, and to seek entry to the European Common Market (EEC).

Beyond this, inevitably—if war against the Soviets does not bring complete chaos —lies a Western Euro pean Union (political as well as economic). For us of the South Pacific countries, this can mean many changes.

Events in June and July showed we already are facing new conditions.

Before we examine these, it is desir able perhaps to outline the classifi cation of the Islands; (Continued on page 145)

The high cost of Australian goods and particularly of sea freights from Australia is causing concern amongst business circles both in Australia and New Guinea.

This car, seen here being unloaded from the "Schelde Lloyd", is a German-made product and can be landed in Rabaul ail the way from Europe to sell for £80 under the Australian price for an identical Australian - made product.

Polled Or Directly In

■Luenced By Britain

L Crown Colony tmons, Protectorate bert & Ellice Is. Colony iga, Independent Kingdom

'Rolled Or Directly In

Luenced By Australia

lua, Australian Territory v Guinea, UNO Trust Territory iru, Trust Territory

Trolled Or Influenced By

Few Zealand

stern Samoa, independent nation k Islands, NZ Territory

[Rolled By France

r Caledonia, French Territory nch Polynesia, French Territory

By Usa

tern Samoa, USA Territory ronesia, UNO Trust Territory

[Fined

v Hebrides, Anglo-French Con ominium tain, Australia and New Zealand ty act in co-operation in the Islands lation to international affairs. This h group is by far the most impor- In the South Pacific. rt, but a long way back, is the

|x group.

American group (which includes nesia, although those archipelagoes actually north of Equator) is small

Inimportant.

Itically, New Hebrides is a mess. It ferned jointly by Britain and France.

Its commerce is shared by France and Australia. Its natural resources and land area are considerable. Australia owns lands there, but has no official or political voice.

Tropical Products and the Common Market It was not until June-July that South Pacific countries awakened to the possibilities of far-reaching trade changes, if Britain entered EEC.

Australia and NZ, realising quickly that their temperate zone foodstuffs would meet Western European food stuffs head-on in Britain’s food mar kets (now largely reserved to Com monwealth countries) were in clamour months ago.

But some time elapsed before Is lands exporters began to ask about the future of our tropical products, now sheltered also in some degree in Britain’s markets. Those products include— Sugar —From Fiji. Substantial quota guaranteed by Britain for some years.

Copra and Products —Exported by practically every Pacific Islands Territory, including French and American.

Coffee and/or Cocoa —Exported by Papua and New Guinea, New Hebrides, Western Samoa, and some French Islands.

Rubber —From Papua, mainly. (Over)

ffie more that questions were )d about the possible fate of

:sh tropical products, in relation to

teal products now entering the ting Common Market from the ich and former French tropical

Itories —especially in Africa—the

:e uneasy the Pacific British be ■ Fiji Wants to Know

:ieir anxiety is best outlined by

following set of questions, framed sading merchants in Suva for in ion in a formal inquiry which the i Chamber of Commerce sent to :ion in June: it reasonably certain that Fiji as a denial territory will be accorded the atus of an Associated Overseas Terri ry. if the United Kingdom enters

E Eec?

Fiji’s association as an AOT ntingent to any extent on compar ■le status being granted to— ) The self-governing Dominions such Australia, New Zealand, Canada, dia and Pakistan, or ) The newly independent territories, tably the former African colonies ch as Nigeria and Ghana? hat are the implications of Fiji’s be ming an AOT both generally and th particular reference to:— ) the entry of Fiji products to the :c. ) the entry of EEC products to Fiji. ) the right of access by Fiji to the nmunity’s development fund? connection with paragraph (b) of estion 3, will Fiji be at liberty to customs duties at a level which 11 approximately sustain current renue from this source, subject only the removal of discrimination as tween products of the United ngdom and the other members of s community? it possible that Fiji’s sugar exports the United Kingdom may be pardised either quantitatively or as price notwithstanding the terms of f Commonwealth Sugar Agreement? lat is likely to be the position of ionut oil and the by-products of >ra-crushing, at present exported by i principally to members of EEC 1. to a modest extent only, to the ited Kingdom? the event that Fiji is invited to st whether it will become an AOT y the advantages and disadvantages summarised, particularly in relation Commonwealth countries which may be granted associated territory tus? . J. N. Falvey carried the sub

;.of these questions in July to

7 iji Legislative Council, in an

to get reassurance; and Colonial ■ary P. D. Macdonald did his -although obviously he did not very much. st people wanted to know what 1 be the status and privileges of

an “Associated Overseas Territory”.

Mr. Macdonald said it was in tended that “independent territories” should have the choice of becoming AOT’ if the latter status was avail able; but the geographical extent of the association, and its form and con tent, had not yet been defined.

Discussions were proceeding in London and Brussels, presumably.

“The effect on the trading rela tions of Fiji with New Zealand and Australia will not be clear until it is known on one hand what rights and obligations are involved in ‘associ ation’, and on the other hand what the position of those countries in re lation to the Community is to be,” said Mr. Macdonald.

This left Fiji much in the dark.

There was equal uncertainty in Papua and New Guinea. Was an Australian Territory, marketing tropical products in Europe, likely to be allowed into the new marketing set-up as an “Associated Overseas Territory”?

Provision for Tropical Dependencies No one seemed to know anything, until on July 15 Reuter distributed from Brussels an unofficial but ap parently authoritative report which said that a new agreement between Britain and the Common Market countries is likely to lead to the creation of a vast free-trade area which will include some 30 dependent countries, including France’s present and former African colonies.

It was proposed that the British dependencies, Fiji, Solomons, Gilbert and Ellice, New Hebrides, Mauritius, Zanzibar, Barbados, Windward and Leeward Islands, Bermuda, should get admission to the Common Market with Britain, as “AOT.”

This appeared, late in July, to answer queries about the effect of EEC on the British Pacific Is’ands; but there was still no indication of the status of the Australian and New Zealand dependencies.

Startling Changes Around

Whitehall Meanwhile, the Pacific’s political and economic uncertainties were ren dered more uncertain by a sudden British political development, com mencing in mid-July.

Prime Minister Macmillan dis missed a large proportion of his Ministers, including Mr. Selwyn Lloyd, and at this writing is trying to carry on with the Common Market plan, with all its complications, with a new team.

Parliament is looking on coldly, awaiting the outcome of it all—and the outcome is anybody’s guess.

Another Colonial Minister Of interest to the British Pacific is the appearance of Gerald Maud ling, 45, as Chancellor of the Ex chequer.

When lain Macleod last September was kicked upstairs out of Colonial Office—and so ended his spectacular career as the champion wrecker of the British Colonial Empire—Maud ling came from a minor post to the Colonial Office. By repute, he is a man of great ability, but he did not seem interested in the Colonies, and made no mark there.

The new Colonial Secretary is the Prime Minister’s son-in-law, Duncan Sandys; and this means that this out standing Minister will have both Commonwealth Relations and Colonies under his control—a very interesting change. lain Macleod escaped the blitz, and still is in high office. Most people blame Macleod, as party chairman, for all the by-election defeats which so worry Macmillan; but Macmillan sticks to Macleod.

The Territories of the South Pacific were never before more directly affected —in peacetime—by events and developments in inter national affairs, present and pend ing. What has been described on pages 20, 21 and above is part of the world pattern.