EMBARGO! Not for u . blicition, broadcast, or cabling before
TTUL Jn AY, l1th July4 1961 P. 111. No. 33/ 1961
. COFMIT 1M,' EKE T
1. The Prime 1Minister of Australia, Mr. Menzies, and
other Australian Ministers have du, rin-g the last fed days had
discussions with the British Secretary of State for Commonwealth
Relations, Mr. Duncan Sandys.
2. Mr. Sandys explained the various considerationis whiich
had led the Britishi Government to re-examine its attitudo -towards
and realations'nip with the European ., Oconomic Commirunity ( thec
" Common M-arkt"), established by the 21roaty of Rome.
3. In tho courso 01 se) vera'L mee1tings, t ho po1litical and
ec;_ onomic impl ications of such a stop weefully discussod.
4. The iAustralian ! Q" ov~ rnmont considcred that, shiould
~ 3ritai1 join theo Europ'can _ Sconomic Comunity, it mighit . oll be
that sheo will become incru-' singly involved in not only theo
economic policies of th--e Cormmuni. ty but ,-1so in matters of an
intternationai -and political kind. Sandys emphasized that
the 3ritisa Governmeont wvas convinced that the obj.. ctivao of closer
unity in Europe wxras in no ra,-y incompatiblo with tema-intenance
. and further d, vclopmriat of Conmonw. ae, l th ties, which constitute a
valuable unifying influence: in a -, Uc'i divided wrorld" A. Aastr. alian
rMinistors pointLed ou~ t that they t!-ought thne ultimate political
implications of theo reaty of Teearo extrem-ly significant and
will tond to posse-ss a duvolo-oing c~ iaractor in the acnieveont of
soe k-ind of &. ropean unity. Thoy sawl merit in such unity since
a continuing division, in rival economic groups would 00 a source
of dango-1 and weakne.-. ss, wileo a powerful_ and o:: periUncadU g'roup of
fr,--o European nf.. tions can do much -to pr,.! serve the world's peace.
Ho-icvor, they emphasized thait ai-thoDugh avoida. nce of J. divided
Wost._ rn Europe , as a desirable objuctive it should ne-t be--
accoim. plished at theo cost of d-i'vision within the Connearw.-alth or
elsoiwhere in tUhe world. Australian Minis-ters expressed thecir
concern at the weake.: ning effect they believe d thlis developiment
' joul h-a ve on thei-Ccxm:: on rul-1c1 i.'" n) sthh ip. So. n'dys stressed
theo importance theo United Kingdom-, a!, ttaches to naintaining thais
-1art i,) nship unirmpairud. Indeed'A,' t 4io : r i t is h Gucrnr:'ñ ent belie ved
tha: t a closur ,_-ssocia-tion of Britain r-ith the cnien f'erp
rfi~~ twelbe added s.-eurce: ) f strengthl not Only to I3ritain but
to t. 10 Ciemonwaltha as a wi-io-le:.
exch'-anges occurred in1 the e: conomic advanti-ges
and disadvanitfages which would censue if Britain were to accede
the Treaty ojf Riom. e and the, 1 po) ssiele e, ffOctS Of thlis on the
tr.: de e-. nd industry of Lnrdti Austr,, lia).. It w. a: s r(. cognisod
Thtthe issiu-oif * Britain's acccssi,) n to thec Treaty -f-I'oa was
primarily a mtter fo-r Britain a-nd was one_ which-the riis
Gev. c. rnricnt alan,.. could -decide.
s 2.
But Australian Ministers explained the srious adverse
consequences for Australin producers and for the Australian
balance of payments which ould confront Australif if the
United Kingdom were to enter the Cormlmon Market on a basis which
failed to safoguard Australian trade interests for the future.
6. Mr. Sandys assured the Australian Government that the
British Government fully shared its concern to naint. in the
long-established flow of trade betoecn iheir two countries. If
nogotiations took place, the intention would be to secure special
arrangements to protect these imp: rtant trading inter,, sts.
7. Mr. Sandys mado it clear that he did not ask the
Australian Governiiont to express an opinion on the question
whether Britain sihould join the Cormon Market. The British
Government itself had as yet reached no decision on this issue.
The im ediate question was whether or not to open negotiations
with the European Economic Cormnunity.
F. As the whole qucstion is of naj. or importanco for Britaii
aind for decision by her, Australian Ministers did not feel
entitled to object to the opening of negotiations by the British
Government should it reach the conclusion that this was
desirable. But they made it clear that the absence of
objection should in the circumstances not be interp: rted as
implying approval. They further stressed that, as in any such
negotiations, varicus Australian export industries would be
materially involved, Australia should be in a position to
ne-otiate direct on Australia's behalf when details and
arrangements affecting items of Australian trade were being
discussed.
9. Mr. Sandys said he well understood the position of the
Australian Govermlont; and he appreciated its understanding of
Britain's problem. It was a: reed that these talks, which had been
conducted in a m., st helpful and constructive spirit on both
sides, had resulted in a more complete understanding of the
inportant and corplex issues involvod.
CANBERRA, 11th July, 1961.