FREE TRADE PACT Reasons Given For Australian Policy

Press, Volume CIV, Issue 30856, 15 September 1965, Page 3

FREE TRADE PACT Reasons Given For Australian Policy

•Neu? Zealand Press .Association)

AUCKLAND, September 14.

An “enlightened self-interest’’ on the part of Australia was one of the reasons why it had been possible to negotiate a trade agreement so satisfactory from New Zealand’s point of view, said the Minister of Overseas Trade (Mr Marshall) in Auckland todav.

“The Australian Government and the leaders of Australian industry have accepted the validity of the argument that a prosperous and developing economy in New Zealand will give them more opportunities for trade.” he said.

This was the basis of their willingness to accept the safeguards in the agreement which preserved for this country the conditions for sound industrial development.

Mr Marshall, who was) addressing more than 300 businessmen at a luncheon) arranged by the Auckland) Chamber of Commerce, said) they might have been wonder-) ing how such a satisfactory) agreement could have been) negotiated with Australians) who had the reputation for! hard bargaining. “We began with a strong) case for an improvement in) our balance of trade with) Australia” he said. “This! was recognised by Australia) on the grounds that if they! wished to maintain and improve their position in our) market which is important to) them, we would have to get a) better deal in the Australian, market—and we have. • !

“We also had some things) to offer which Australia need-'

ed and which we can supply in quantity and quality—forest products and primary products in particular. For these we have now opened up a secure ard preferred market which will be to our mutual advantage. Mr Marshall said that another factor had been the enlightened self-interest shown by Australia in accepting that a prosperous and developing economy in New Zealand would give them more trade opportunities. Pacific Place “Finally, the Australian Government and the Australian people are perhaps more aware than we are of their lonely isolation in the South Pacific.

“They are nearer the perimeter of tension to the north and they are very conscious of the importance of the A.N.Z.U.S. Pact and of the strategic significance of a ( close and acceptable association between us.” Mr Marshall said that at last after two years in negotiations he was able to speak

freely and fully about the agreement. He had been accused of being evasive, failing to take the country into his confidence and of refusing to disclose information which people were entitled to have. But the agreement had not emerged in its final form until the ministerial discussion in Canberra last month. “To have disclosed some of the earlier drafts without some of the safeguards later gained and without some of the commodities later added would have caused even more alarm and consternation than there was in certain quarters and would have made negotiations more difficult. “Premature discussion would also have disclosed our negotiating position in advance which I am sure you I will agree from your own [experience is not a good ) thing.” No Secrets There were no secret or undisclosed terms, he assured his audience, or reservations and understandings which were not set out for all to read in the documents.

“We now have the position of manufacturers complaining that they have not been included as foundation members in the club. This is a situation which will grow and I will welcome it and try to remedy it.”

Mr Marshall warned that t*-e agreement must be kept in perspective. It involved £50.000,000 worth of the total trade between the two countries and although this was a substantial amount it was a small part of New Zealand's over-all trade. Trade with Britain was more than four times as great as the whole of our trade with Australia and seven times that covered by the agreement. “Britain is and will remain our greatest trading partner, a point not without significance in relation to our trade agreement with Britain which expires in 1967 and is now being renegotiated,” said Mr Marshall.