FURTHER STEPS IN COMALCO DEAL

Press, Volume CVIII, Issue 31596, 6 February 1968, Page 1

FURTHER STEPS IN COMALCO DEAL

(New Zealand Press Association) WELLINGTON, February 5.

The Government today arrived at several decisions regarding the establishment of the multi-million dollar aluminium smelter at Bluff; and further negotiations are to follow with the Commonwealth Aluminium Corporation.

The Prime Minister (Mr Holyoake) said tonight: “We had quite lengthy discussions on a paper from the Cabinet Economic Committee.

“These are decisions in the negotiations with Comalco. These decisions will be forwarded in the process of negotiations,” he said. Mr Holyoake confirmed earlier today that the questions for discussion by Cabinet included the amount of taxation which would come from the project, the overseas earnings and the price at which aluminium would be available in New Zealand. The Cabinet’s decisions would be forwarded to Comalco for their consideration, he added. Flying To Europe Mr Holyoake also revealed that the managing director of Comalco (Mr D. J. Hibberd) is flying to Europe for business talks. Mr Hibberd said in Wellington recently that the com-

pany’s negotiations for finance for the smelter had been extended from Japan to Europe. Referred to a report that New Zealanders might be invited to provide funds to assist the financing of the project, Mr Holyoake said this was all part of the negotiations that were going on.

"I could not publish details at this stage,” he said. Mr Holyoake said he hoped Comalco and the Government would come to an agreement on the various matters now being considered. “There are many points which must be agreed before we can proceed,” he said.