TASMAN TRADE PESSIMISM

Press, Volume CVI, Issue 31305, 27 February 1967, Page 3

TASMAN TRADE PESSIMISM

(N.Z. Press Association) WELLINGTON, February 26. The Australian Minister of Trade and Industry, Mr McEwen, last night sounded a pessimistic note when he arrived in Wellington for talks on the Australia - New Zealand Free Trade Agreement. Talks will get under way on Tuesday, according to New Zealand’s Minister of Overseas Trade, Mr Marshall, who met Mr McEwen. The note of pessimism

came when Mr McEwen was asked at a brief press conference whether there ever might be a balance of trade in New Zealand’s favour under the agreement. “Quite

frankly I can't see that,” he| replied. “Your great exports are our great exports too. “On the other hand Australia is a very great exporter of manufactured goods which New Zealand is not.” On Discontent Mr McEwen was asked about discontent caused by the agreement. “I don’t agree there has been a lot of discontent over the agreement,” he said. “I don’t think there will be any real problems." Questioned about the reported wish of the Australian Prime Minister, Mr Holt, to lean over backwards as regards the trade agreement, Mr McEwen said: “It has always been my desire to improve the trade between the two countries.” Mr McEwen was asked for his views on a claim on Saturday by a Federated Farmers’ spokesman that the disparity under the agreement was now £5O million a year. He conceded the figure “may be right,” but said the disparity was not growing. Mr McEwen was also questioned about the allegation by this Federated Farmers’ member that “there is only one way to negotiate with Australians and that is with knuckle-dusters on both fists and steel toes on one’s boots.” Against Irrational People The Minister asserted that he was in New Zealand on a job of mutually examining in

good faith the trade opportunities of the two countries. He said that it had never been his practice to deal with “irrational” people. One of the purposes of Mr McEwen’s visit—the first since the agreement took effect on January 1, 1966—is to discuss the list of articles which might be added to Schedule A, items subject to free trade provisions of the agreement. Mr McEwen was asked whether he might take exception to any items which have been advanced by New Zealand for inclusion in Schedule A. “I don’t know of any that will be contentious,” he replied. Restrictions On Quantity Mr McEwen recalled that when Australia signed the agreement it pledged that quantitative restrictions would not be imposed on imported goods for balance of payments reasons. “We gladly conceded the right of New Zealand to have quantitative restrictions,” he said. If there was any disparity of treatment, he said, it was in New Zealand’s favour. In first announcing Mr McEwen’s visit, Mr Marshall said it was expected that the Ministerial meeting would review the free trade agreement to date and consider ways in which its administration and working could be improved.