If Britain Joins The Common Market, Th[?]

IS WHAT IT WILL MEAN TO THE ISLANDS

A PIM Special Survey M, r u ßr / tain^ aS . apP ' ied f o r membership of the European Economic Community—the Coramo, Marlcet—without any conditions attached to her application. She recognises for examnle tha British preference in Commonwealth countries must go If Britain is admittoH wbmt -i world? ° n S ° U,h PadfiC trad6? Wh3t efl6Ct WiU h 2

XTOBODY knows positively the answers to all the questions that will arise, for there are a number of imponderables which can’t be cleared up until the full terms of membership are known, if in fact Britain is admitted.

But there is a fairly clear overall picture of likely effects. They are discussed m various reports on these pa H S ’ r- , Ihe French territories of New Caledonia and French Polynesia already have a tariff preference in favour of France and the Common Market, and also quantitative import restrictions applying to countries such as Australia. Their import licensing is designed to protect French interests and as a buttress to the tariff.

There is a possibility that quantitative import restrictions could be applied to other Pacific territories which become Associated Overseas Terntories under the Common Marrt- Associated Overseas Territories status could be granted to Fiji, the Gilbert and Ellice Islands Colony,

the British Solomon Islands Protecto rate and probably Tonga. Western Samoa could possibly be admitted as an Associated Overseas State, being independent.

This membership would ensure that they received privileged entry of their products into the Common Market countries, and would also entitle them to participate in the EEC Develop ment Fund > which provides advances and loans for developing countries.

They would give preference to the Common Market countries in return, p Kip %#nlr»o»-aMa r-nu vumerdDie As far as Fiji is concerned, asso ciated membership may not entirely safeguard her most vital industry. her sugar (see opposite). It depends on whether the UK could safeguard the provisions of the Com- But copra exports would be safe guarded in all areas allowed asso ciated status.

The Cook Islands is not likely to be affected by Britain’s membership because all her export trade is with

New Zealand. Nor would she entitled to associate membership.

Thus Papua-New Guinea is most vulnerable of the South Pac territories, if we assume that F sugar industry would be safeguard It is difficult to see how IS Guinea can be expected to get i of the tariff preferences on tropi products enjoyed by the associa territories. Australia could talk the British and ask them to sti New Guinea’s interests.

Its copra would not be a seri problem (see story p. 22), but coconut oil—for which she currei enjoys a preference in the Bril market—she will be confronted v a reverse preference. Coconut from, say Fiji, would enter the m ket duty free, and there would b< tariff for the New Guinea oil.

Oil milling is one of Europe’s old industries and one in which consid able capital is involved, and an i port duty could bring oil-crushing the territory very close to being uneconomic proposition.

Papua-New Guinea rubber v present no marketing problems, the whole production is easily ’ j sorbed by Australia. Rubber prodi tion provides about only 15 per ce of Australian requirements.

The territory’s peanut producti is also absorbed by Australia.

There are other markets

Up to the present, the coffee 01 put has fairly well been taken up Australian buyers. A minor quant of coffee does find its way overse; more for the reason of obtain! better prices than anything else, b it is unlikely the New Guinea coff producers will have to turn at i seriously to Europeans to find an oi let.

Cocoa could be faced with pro lems, as at present about 50 per cer of production finds an outlet Europe. Present New Guinea produ tion is about 20,00 tons and is groi

apidly. Alternative markets will to be found nearer home to with this recent production, istralia would find P-NG leaning heavily on her. is well to remember that the and Europe are not the only ets for New Guinea or South primary exports, and their ex amount to only a minor per ge of world production, e world is large and more mar are opening up. the Common Market means any to the South Pacific it means emphasis will need to be on ty. If your products are good gh the buyers will be there, lat effect will the common et have on Australia’s relations the South Pacific? istralian investments in Fiji the Solomons will probably not fected. There is no reason why ;nds and interest payments made those areas to Australian firms d not continue. the Pacific territories become iated territories in the Common et they would presumably have ferential tariff for the Common et countries and a general tariff he rest of the world, including alia. This means that Australia expect more competition in [factured goods from such ries as Japan and the United >, as well as the Common Mar ountries themselves, stralia would continue to do a antial trade with the Pacific by of her proximity and because ;oods she supplies are essential, ases in the population and h of the Islands would benefit alia’s export trade.