Mr Muldoon’s Warning On "Small U.K. Group’

Press, Volume CVIII, Issue 31753, 9 August 1968, Page 1

Mr Muldoon ’s Warning On "Small U.K. Group ’

(New Zealand Press Association) WELLINGTON, August 8.

Parliament was warned tonight that there was a small group in Britain which was still trying to use New Zealand’s rejection of the British B.A.C. 1-11 short-haul jet airliner as an excuse for loosening trade ties between the two countries.

The Minister of Finance (Mr Muldoon) said as he wound up the Budget debate: “There is a small group of people in the United Kingdom who are enthusiastic to join the E.E.C. and who are prepared to argue for abandoning trade ties with New Zealand.”

He described this as an action which would destroy the complementary character of the two economies and said: “I believe it would in the long run damage the United Kingdom and it would certainly destroy the New Zealand economy.” Mr Muldoon said some of the British group were using the relatively small matter of New Zealand’s purchase of the American Boeing 737 aircraft as a replacement for N.A.C.’s Viscount fleet as an “excuse for loosening some of these trade ties.”

In an angry attack on claims made in Parliament on Wednesday night by Dr A. M. Finlay (Lab., Waitakere) that the Government had not made a fair comparison between the B.A.C. 1-11 and the Boeing 737 when it selected the

Boeing as a replacement for N.A.C.’s Viscount fleet, the Minister said: “Let me say quite clearly that to spread this mischievous story as the member for Waitakere did last night is foolish and irresponsible—it is bordering on treachery.” Remark Withdrawn The Opposition’s junior whip, Mr R. L. Bailey, (Heretaunga) rose to raise a point of order in which he pointed out the Minister had accused Dr Finlay of making a statement bordering on treachery. Mr Speaker (Mr R. E. Jack) agreed that even though the Minister had limited his use of the word treachery it had to be withdrawn. Mr Muldoon: I withdraw It.

The Minister of Civil Aviation (Mr Gordon) told Parliament tonight he “deplored” the attitude taken by the British over New Zealand’s

decision to buy Boeing 737 instead of the-B.A.C. 1-11. “I deplore the attitude taken by the British on this most difficult decision,” he said. But the Minister did not elaborate further except to say: “May I respectfully point out to our British kith and kin that the cost of the frigate is very substantially more than the cost of a few B.A.C. 1-lls.” Frigate Purchase In an interview later Mr Gordon said his reaction to the British attitude came from statements made to him personally while he was in Britain recently in the course of an overseas tour. The Government announced this week that it had placed an order for a fourth frigate —costing $2lm —with a British shipyard. The three Boeing 737 s will cost about sllm. (Mr Gordon earlier, Back Page)