Fewer Big N.Z. Aid Grants

Press, Volume CVIII, Issue 31830, 7 November 1968, Page 1

Fewer Big N.Z. Aid Grants

(New Zealand Press Association) WELLINGTON, November 6.

New Zealand would make fewer large capital grants in foreign aid in future in order to conserve overseas funds, the Prime Minister (Mr Holyoake) told Parliament during a Foreign Affairs debate tonight.

“Instead, we shall devote greater emphasis to the training of overseas students, the provision of experts, and the supply of New Zealand goods and services.”

New Zealand's balance of payments had improved over the last year, Mr Holyoake said. “But we still have to overcome serious marketing problems before we can contemplate substantial increases in foreign aid.” Early in the Colombo Plan, New Zealand emphasised the importance of agriculture as a sound basis for economic development in the less-de-veloped countries. The Prime Minister said Colombo Plan countries must concentrate on primary products—both to meet the needs of their expanding populations and to earn overseas funds. Trade was of greater im-

portance to economic development than aid. “The failure of many industrialised countries to liberalise trade in primary products has increased the economic difficulties of developing countries—including New Zealand," said Mr Holyoake. In spite of New Zealand’s own economic difficulties it had increased foreign aid 3.8 per cent, 34.2 per cent, and 4.2 per cent a year over the last three financial years. “The large increase from 1966-67 was due in a large part to our contributions to the Asian Development Bank.”

New Zealand's appropriation for foreign aid this year was 13.9 per cent up on last year, he said. Good Name

Recalling his recent 25-day overseas tour, the Prime Minister said his dominant recollection was that New Zealand's name stood high everywhere.

“I encountered nothing to substantiate the claim sometimes made here that New Zealand has lost standing abroad,” he said. “The very opposite is the case.

“I heard only the warmest praise and appreciation of our diplomatic missions, of our aid programmes, of our technical experts, of our soldiers and our medical teams,” Mr Holyoake said. “Pessimistic judgments of our international reputation are well off-beam.”

Commenting on his state visit to the United States—the first since Mr Peter Fraser’s official visit in 1943 —he said New Zealand was distant and comparatively small.

“The United States has treaty relations with over 40 countries,” he said. “We can’t expect it to have New Zealand’s point of view constantly in mind.”