No Proof Of N.Z. Link With Tanker Purchase

Press, Volume CVI, Issue 31089, 18 June 1966, Page 23

No Proof Of N.Z. Link With Tanker Purchase

(New Zealand Press Association) WELLINGTON, June 17. The Prime Minister (Mr Holyoake) said that there was no proof that New Zealanders had financed the purchase of an illegal petrol shipment which newspaper reports claimed had reached Rhodesia recently.

He told the House of Representatives that no approach had been made to the Reserve Bank to transfer funds for the purchase of petrol for Rhodesia —but agreed that money could have been illegally smuggled out of New Zealand for the purpose. The newspaper reports stated last week that an oiltanker festooned with New Zealand and Australian flags had arrived in Rhodesia. In reply to a question from

Mr H. L. K. May (Opp, Porlrua), Mr Holyoake said he had seen the report but stated that the Government’s policy towards Rhodesia had not changed. “I have made inquiries into the matter of the financing of the illegal petrol shipment, but there is no proof that any New Zealanders were involved, except for the newspaper evidence,” he said. Asked by Mr N. V. Douglas (Opp, Auckland Central) if money could have been illegally smuggled out of New Zealand, the Prime Minister replied: “Yes.” Replying to Mr A. K. Faulk- ; ner (Opp, Roskill), he said 'the Reserve Bank would re-

fuse any request for money for such a purpose—and because of this the Government would not need to take any action.

Asked by Mr W. W. Freer (Opp, Mount Albert) if he would ask the External Affairs Department to investigate the report, Mr Holyoake replied: “I am prepared to accept that certain oils did go to Rhodesia, but there would be no way of proving any New Zealanders had taken part.” Mr R. L. Bailey (Opp, Heretaunga): Does the Prime Minister propose to carry out an investigation into whether money was smuggled out of New Zealand? Mr Holyoake: There would be no way of tracing it.