Govt May Hire U.S. Frigate

Press, Volume CVIII, Issue 31598, 8 February 1968, Page 12

Govt May Hire U.S. Frigate

(New Zealand Press Association)

WELLINGTON, February 7.

The Government was expected to cancel plans to buy a fourth frigate from Britain, and instead, to hire a frigate from the United States, the defence reporter of “The Dominion” wrote tonight.

It also planned to take the SUSSSm offered by the United States for the purchase of military equipment, and to place an order soon for strike aircraft to replace the Canberras, he wrote.

Officially it was still Government and Defence Department policy to buy the fourth frigate, but the Government had been looking at the matter carefully since Britain announced that it would withdraw from South East Asia by 1971, he said. “The SUSSSm credit available in the United States under the military sales arrangement provides credit for seven years at 5J per cent interest for the purchase of defence equipment of United States origin, provided the orders are place before June 30, 1968. “The word has now been passed to the Government that if the credit is not used before June 30, terms on any re-negotiated agreement would be tougher—politically as well as financially. “It is therefore believed that the Government will approve the purchase of the Phantom F 4 fighter-bombers recommended by the Defence Council. “It will also approve the

purchase of field force equipment for the Army. “The SUSSSm credit alone would be enough for both items, but the s2om to be saved by cancelling construction of the fourth frigate will help solve any economic difficulties that may otherwise arise.”