Mutual Expansion Of Trade Advocated By Mr Sato

Press, Volume CVII, Issue 31502, 17 October 1967, Page 1

Mutual Expansion Of Trade Advocated By Mr Sato

(New Zealand Press Association) WELLINGTON, October 16. New Zealand has not been asked by J apan for a revision of the trade agreement between the two countries—even though the balance of trade is two-to-one in New Zealand’s favour.

This was made clear at a press conference in Parliament Building today by the Japanese Prime Minister (Mr Sato) and the New Zealand Prime Minister (Mr Holyoake).

Mr Sato said through an interpreter that in his talks with Mr Holyoake and the Cabinet this afternoon he had stated that New Zealand and Japan should expand their trade both ways. Mr Holyoake said the JapanNew Zealand trade agreement had been working “very satisfactorily” and said last year it was two-to-one in New Zealand’s favour. . Mr Sato had not petitioned

New Zealand to revise the agreement, said Mr Holyoake. Trade Imbalance However, Mr Sato later referred to the trade imbalance at the State dinner in his honour. Exports from New Zealand to Japan last year totalled $81,435,000 —more than six times the value of exports in 1958. Japan's exports to New Zealand in 1966 totalled $42,496,000, an increase of 6.5 per cent on 1958. “One of the problems that Mr Holyoake talked to me about was the fall in the price of wool and that this was a most serious problem for the New Zealand Government," said Mr Sato at the press conference. The Japanese Prime Minister poured tepid water on a

proposal for a Pacific free trade area and said: “It is more important than the formation of a free trade area that we should be helping the developing countries to achieve stability in this area.”

He suggested that the advanced nations in Asia and the Pacific should work more closely together to aid developing countries in which there was instability and economic stagnation. At the State dinner tonight Mr Sato said that prospects for expansion of trade between Japan and New Zealand were limitless, but he had noted that for the last year or two the trade balance had been much in New Zealand’s favour.

“It is my sincere belief that in order to place our trade solidly on an everlasting basis that it is very desirable that this country will import more Japanese machinery and goods—thus rectifying this imbalance,” Mr Sato said. "Common Destiny”

Referring to over-all events in the Asian-Pacific region, Mr Sato said: “Japan and New Zealand share a common destiny. “In the Asia-Pacific basin —to which Japan and New Zealand belong—fighting still goes on and many of the developing countries are troubled by poverty and stagnation. “It is encouraging to note that recently the climate for regional co-operation has

been fostered in the area and that efforts in this direction are bringing fruitful results such as the establishment of the Asian Development Bank and A.5.P.A.C.,” he said. Mr Sato said he was happy to note that New Zealand had contributed much in this area.

“For its part,” he said, “Japan has made and is making efforts to assist the development of this area by initiating and sponsoring the ministerial conference for South-East Asian development as well as the agricultural conference for SouthEast Asia, and by increasing its aid to the countries in the area.” Fishing Pact Referring to the Japan-New Zealand Fisheries Agreement, Mr Sato said: "Fortunately this problem has now been solved because we have recently reached a wise and reasonable solution —thanks to Mr Holyoake’s discerning statesmanship. “This is a matter for rejoicing from the viewpoint of better relations between our two countries,” he said. Mr Holyoake said at the dinner there was a continuing responsibility on countries like New Zealand and Japan to work for a more secure and hopeful future for the peoples of Asia. ‘There is fortunately a new spirit stirring in Asia today,” he said. “There is a new impetus towards regional cooperation and I am convinced that this is the movement of the future."