MILL TALKS CONTINUE

Press, Volume C, Issue 29701, 20 December 1961, Page 16

MILL TALKS CONTINUE

Speculation On Main Topic fN.2. Press Association) WELLINGTON, .'ec. 19. There is still no indication from the principals in the Nelson cotton mill discussions whether the main topic is the terms on which the cotton mill project will go ahead or the amount of compensation that the British company should be offered for abandoning its rights under the agreement negotiated by the : previous Government. The protracted nature of the talks, which have been j taking place almost daily < since Parliament rose on: December 1. are interpreted, by some observers as a sign that the mill project is to go ahead. If these observers are right, it would indicate that i haggling is going on over the degree of protection the com-, pany’s products will enjoy and the exact meaning of the clauses of the agreement that deal wtih prices to the consumer. No Statement Yet The economic committee of the Cabinet did not discuss the cotton mill project today but the officials committee did. The acting-Minister of Industries and Commerce. Mr Shand, held a discussion with the Prime Minister, Mr Holyoake, to clear up one or two points which have arisen during study of the implications of the agreement with the Commonwealth Fabric Corporation. “I would not like to comment,” said Mr Shand tonight when asked about the possibility of a joint statement shortly by the Government and the corporation on the outcome of their discussions. Mr Shand said that work was continuing on the study of the agreement, but he could not say when the Government would be ready for further discussions with the corporation’s directors. Director’s Comment

The leader of the delegation of the corporation’s directors, Mr J. A. Leavey, M.P., sal-’ tonight that he had had no specific time for the resumption of the discussions with the Government. "I personally have abandoned hope of being back in Britain by Christmas,” said Mr Leavey. ‘I shall go away from Wellington for Christmas—l am not absolutely certain where, but I hope for a bit of relaxation—and hope to resume the discussions soon after the New Year. ft is not absolutely certain that all our directors will stay in New Zealand,” he said.